Agenda item - 2024/25 Budget and Financial Strategy

The report of the Director – Finance and Corporate Services is attached.

It was RESOLVED that Cabinet RECOMMENDS to Council that it:

a) adopts the budget setting report and associated financial strategies 2024/25 to 2028/29 (attached Annex) including the summarised Special Expenses budget at Appendix 1, Budget Summary at Appendix 2, changes to fees and charges regarding Garden Waste and Car Parking (Appendix 5) and Transformation and Efficiency Plan at Appendix 7;

b) adopts the Capital Programme as set out in Appendix 3;

c) adopts the Capital and Investment Strategy at Appendix 8;

d) adopts the Second Home Premium at Section 3.4 and any notification of further exemptions to be adopted and incorporated into a revised policy;

e) sets Rushcliffe’s 2024/25 Council Tax for a Band D property at £157.88 (increase from 2023/24 of £3.93 or 2.55%);

f) sets the Special Expenses for 2024/25 for West Bridgford, Ruddington and Keyworth, Appendix 1, resulting in the following Band D Council Tax levels for the Special Expense Areas:

i) West Bridgford £59.44 (£55.95 in 2023/24)

ii) Keyworth £4.69 (£4.38 in 2023/24)

iii) Ruddington £3.29 (£3.68 in 2023/24);

g) adopts the Pay Policy Statement at Appendix 6; and

h) delegates authority to the Director – Finance and Corporate Services to make any minor amendments to the Medium-Term Financial Strategy (MTFS) once the final local government finance settlement is received and advise the Finance Portfolio Holder accordingly, to be reported to Full Council.

The Cabinet Portfolio Holder for Finance, Transformation and Governance, Councillor Virdi presented the report of the Director – Finance and Corporate Services outlining the Council’s proposed budget for 2024/25, the five-year Medium Term Financial Strategy (MTFS) from 2024/25 to 2028/29, which included the revenue budget, the proposed Capital Programme, the Transformation and Efficiency Plan, the Capital and Investment Strategy, and the Pay Policy Statement.

Councillor Virdi referred to the recent very challenging economic environment that the Council had faced and stated that the budget demonstrated the Council’s ability to cope with those issues, whilst continuing to deliver excellent services. In that context, Councillor Virdi advised that the projected budget deficit over the next five years was considered to be manageable at £1.6m, and it was important that the Council continued to plan carefully to avoid the same problems faced by other Councils. Given the high inflation rate, Councillor Virdi advised that consequently some fees and charges were being increased, including garden waste and car parking charges.

Cabinet noted that Rushcliffe continued to have the lowest Council Tax in Nottinghamshire and remained amongst the lowest 25% in the country. There was an option to raise Council Tax overall by 3%, which would equate to £5.17; however, the £5 increase was the preferred amount, which would help local residents, although it would mean approximately £289k less revenue for the Council over the next five years. Councillor Virdi referred to the financial pressures faced by Councils, and was proud that Rushcliffe had no external debt, and was the only Council in Nottinghamshire in that position. Cabinet was advised that the Council would not become complacent and would continue to ensure that its planning was prudent, sustainable and affordable.

Councillor Virdi advised that as the Council’s capital resources were diminishing they were being carefully managed to ensure future funding would be available, with the Capital Programme for the next five years estimated at £24.8m, which continued to demonstrate the Council’s commitment to economic growth, meeting housing targets, supporting the vulnerable, improving services for residents, whilst focusing on the environment. In addition, the Council would remain a key partner in the both the Freeport and future Combined Authority, the benefits of which would go far beyond the five-year Strategy. Councillor Virdi referred to the continued challenges faced in balancing budgets and reminded Cabinet that this Council was in a far better position than many others, and that it would continue to develop its Transformation and Efficiency Plan.

Councillor Virdi referred to the Local Government Final Settlement, details of which had been received on 5 February 2024. Given the ongoing financial challenges being faced, the Government had provided an additional £600m in funding, of which Rushcliffe Borough Council had received £128k. It was proposed that £28k of the funding would be used for a Flood Grant and to reinvigorate the existing Flood Resilience Storm Grant Reserve, with the remaining £100k set aside for the Climate Change Reserve and earmarked for potential spend in relation to improving biodiversity net gain. Cabinet noted that in relation to this funding, the Secretary of State had asked all Councils to produce Productivity Plans by the end of 2024. Councillor Virdi advised that as a well-run Council, there would be nothing new in respect of operational matters, with the Transformation and Efficiency Plan continuing, to ensure that the tasks set by the Secretary of State would be met. Cabinet was advised that some changes would be required to the report submitted to Council to take account of this Final Settlement, together with changes to the MTFS to reflect the points raised.

Councillor Virdi concluded by thanking Councillors for their input during the Budget Workshops, which had been very constructive and had helped to plan the budget, and the Finance Team for their continued hard work during very challenging times.

In seconding the recommendation, the Leader echoed the thanks given to officers in ensuring that the Council continued to have very stable finances, with prudent use of tax payers money, and with the Council’s financial position envied by many. Whilst not being complacent, the Leader stated that this was due to the hard work of officers, which had been confirmed at the recent Peer Review, when everyone had been very impressed with the positive financial position at Rushcliffe. The Leader advised that the additional funding would be put to good use by helping residents who had been affected by flooding but were not covered by the Government’s stringent regulations, and the additional investment to help mitigate and prevent future flooding was important, as was the funding to help with climate change and biodiversity.

In welcoming the report, Councillor J Wheeler stated that although no one liked to raise Council Tax, it was necessary and it was important to show residents what was being delivered for that, including all the investment taking place in the Borough. Councillor Wheeler referred to the £100k allocated to the Climate Change Reserve, which would help to enhance the Borough’s Green Spaces, which would be beneficial to all residents.