Agenda item - 2025/26 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 2025/26 to 2029/30 (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 at Appendix 5 and Transformation and Efficiency Plan at Appendix 7, with the exception of the proposed £6,000 efficiency for a move to digital bin calendars, which shall be retained;

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

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

d) sets Rushcliffe’s 2025/26 Council Tax for a Band D property at £161.77 (increase from 2024/25 of £3.89 or 2.46%);

e) sets the Special Expenses for 2025/26 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 £64.84 (£59.44 in 2024/25)

ii) Keyworth £3.21 (£4.69 in 2024/25)

iii) Ruddington £3.14 (£3.29 in 2024/25);

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

g) 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 2025/26, the five-year Medium Term Financial Strategy (MTFS) from 2025/26 to 2029/30, 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 a recently circulated amendment regarding changes to the Special Expenses, detailed in the revised covering report, which he would be speaking to. Councillor Virdi stated that all councils continued to face financial pressures; however, unlike many, Rushcliffe was not making service reductions, it was improving them. The Council had a balanced budget, including up to date, signed off Financial Statements, and it remained both diligent and prudent, whilst maintaining a commercial culture and generating financial efficiencies.

Councillor Virdi advised that the Council had received the final Local Government Finance Settlement and reiterated that the Council’s Core Spending Power had only increased by 0.9% compared to 6.8% nationally, with the Government redirecting resources to councils linked to areas of high deprivation. With inflation running at 2%, this was in real terms a cut in overall funding, which meant that the Council had to raise revenue to ensure that it continued to provide the best services and invest in its assets.

Cabinet was reminded that Rushcliffe continued to have the lowest Council Tax in Nottinghamshire and remained amongst the lowest 25% in the country, with the Band D average increase of £3.89, being less than 8p per week, which Councillor Virdi felt everyone should be proud of. In respect of Special Expenses, Councillor Virdi referred to the supplementary paper issued, which detailed minor changes to the figures, and advised that even with the changes, the precept for West Bridgford, compared to other areas remained excellent value. He confirmed that the revised figure for West Bridgford was £64.84, Keyworth £3.21 and Ruddington £3.14.

Councillor Virdi referred to the Council’s Transformation and Efficiency Plan, which was detailed in Section 7 of the Medium Term Financial Strategy (MTFS), which would deliver £1.7m over five years and whilst acknowledging some charges were increasing, he felt that they remained competitive compared to other local authorities. Councillor Virdi proposed one change, that the report to Full Council should be amended to retain the proposed £6,000 efficiency for a move to digital bin calendars, as given the complexity of ‘Simpler Recycling’ and Local Government Reorganisation (LGR), it was felt that it would be better to retain the hard copy calendars for now.

The Capital Programme remained substantial with £27.1m budgeted over five years, including a continued range of investments across the Borough and he confirmed that reserves remained sound and would help the Council navigate challenges going forward.

In summary, Councillor Virdi referred to those significant challenges and uncertainties, which were detailed in paragraph 6.1 of the report, and confirmed that the MTFS highlighted the relatively stable, healthy financial position that Rushcliffe was in compared to most local authorities. The Council continued to maintain and deliver excellent services and provide excellent value for money and Councillor Virdi concluded by thanking Councillors and the Director – Finance and Corporate Services and the Finance Team for their continued hard work during very challenging times.

In seconding the recommendation, Councillor Upton stated that this was an excellent report, detailing a balanced budget during difficult and uncertain times. He felt that the small increase in Council Tax represented great value for the services provided, together with an ambitious Capital Programme, and he reiterated Rushcliffe’s Council Tax position, that it was debt free, with good reserves. Cabinet was reminded that an uncertain future lay ahead and he expressed disappointment that a well-managed, financially prudent council could be abolished. He thanked the Director – Finance and Corporate Services and his team and Councillor Virdi for their hard work in producing this excellent report.

Councillor J Wheeler welcomed the continued investment in projects and schemes throughout the Borough and felt that it was a shame that the Government continued to punish well run councils by reducing funding. However, because of the fantastic work the Council was doing, it could continue to provide excellent services, with only a small increase in Council Tax, and Councillor Wheeler echoed the thanks given to officers.

The Leader felt that it was always regrettable to increase charges; however, the important thing was to remain prudent and continue to give good value for money, and he was proud that the proposed Council Tax would continue to be the lowest in the county, which was important given the excellent services provided. The Leader reiterated comments made by Councillor Virdi regarding the importance of investing in the Council’s infrastructure, and agreed that the future was uncertain, so it was vital that the Council continued to manage its finances prudently. The Leader echoed thanks given to the Director – Finance and Corporate Services and his team for their hard work and due diligence and to Councillor Virdi for his support and input.