Issue - meetings

Due to the timescales and print deadlines, the recommendations of the meeting of Cabinet held on 11 February 2025 will be circulated to Members in advance of the meeting of Council.

In accordance with CPR 8.5 of the Constitution there will be a recorded vote for this item.

Item CB 25/12 referred from the Cabinet of 11 February 2025.

The Cabinet Member for Finance and Housing  proposed that Council Procedure Rule No 6.4 be suspended to allow the leading speakers from each Group to exceed the time limit on speeches when debating the budget proposals.   This was seconded by Cllr Boughton and supported by the Council.

In presenting the budget proposals, which had been considered by the Overview and Scrutiny Committee and the Cabinet on 23 January and 11 February 2025 respectively, the Cabinet Member for Finance and Housing highlighted the areas of budget growth and pressure, outlined the support provided to vulnerable residents, businesses and community groups during the last financial year and welcomed the better than anticipated final Local Government Finance Settlement figure as well as better than anticipated business rates receipts.  

The Cabinet Member for Finance and Housing was pleased to advise that the Borough Council had a balanced budget for 2025/26 and had been able to set aside funds in earmarked reserves for key priorities.  In addition, as a result of the inclusion in the final settlement of a grant in relation to the increased cost of Employers’ National Insurance contributions it seemed appropriate to transfer the additional funding to the earmarked ‘Transformation Reserve’.

It was proposed by Councillor Tanner and seconded by Councillor Boughton that the recommendations at Minute CB 25/12 be adopted.  In accordance with Council Procedure Rule No 8.5 voting was recorded as follows:

Members voting for the motion:

Cllrs Bell, Bennison, Betts, Bishop, Boughton, Boxall, Bridge, Brown, Cannon, Clokey, Coffin, Crisp, Dalton, Davis, Dean, Hammond, Harman, Hickmott, Hoskins, Hudson, Keers, King, Lark, McDermott, Mehmet, Oakley, Palmer, Rhodes, Roud, Tanner,  Tatton, Taylor, Thornewell, Tunstall and Williams

Total:  35

Members voting against the motion:  0

Total: 0

Members abstaining:

Cllrs Athwal,  Cope,  Hood, Oliver, Parry and Pilgrim

Total: 6

(Total number of Members eligible to vote = 41)

RESOLVED:  That the recommendations at Minute CB 25/12 be approved.

Further to the meeting of the Overview and Scrutiny Committee earlier in the cycle, this report updates Cabinet on issues relating to the Medium-Term Financial Strategy.  It also takes Members through the necessary procedures in order to set the Budget for 2025/26.

Members are asked to note that at the time of writing this report, the final settlement has not been received.  All figures contained in the report are based on the provisional settlement. 

Further to the reports to the Overview and Scrutiny Committee earlier in the cycle the joint report of the Chief Executive and Director of Finance and Transformation, the Leader and Cabinet Member for Finance and Housing updated the Cabinet on issues relating to the Medium Term Financial Strategy (MTFS) and gave details of the necessary procedures to be followed in order to set the budget for 2025/26.

Members noted that at the time of publishing the report, the final settlement had not been confirmed, all figures contained in the report were based on the provisional local government settlement, which was better than anticipated, but saw an overall funding decrease on 2024/25 funding of £514,000 (8.5%).

The Director of Finance and Transformation advised that the final local government finance settlement figure was now confirmed as detailed in the supplementary report published in advance of the meeting.  The final settlement was more than the provisional settlement by £157,550 due to the inclusion of a grant in relation to the increased cost of Employers’ National Insurance contributions, and it seemed appropriate to transfer the additional funding to the earmarked ‘Transformation Reserve’.. 

As a result of increased NNDR receipts and the better-than-expected settlement the Borough Council had a balanced budget for 2025/26 and had been able to set aside funds in earmarked reserves for key priorities.  In addition, an initial assessment of reserves had facilitated a recommendation to release additional funds for key priorities.  Members noted that it was anticipated that changes to Local Government Funding affecting Grants and Business Rates would reduce grant funding to the Council.  The latest projected funding gap was £2.8m over the medium term.  In addition, commitment of saving £200,000 (release of office accommodation) and £625,000 (cost and client numbers within temporary accommodation).

*RECOMMENDED: That

(1)        the sum of £1.25m held as a general fund (working) balance and a sum of £2.2m from the Budget Stabilisation Reserve, totalling £3.45m, are transferred to the Tonbridge Town Centre reserve, and specifically set aside for the funding of the redevelopment of the Angel Leisure Centre;

(2)        the Revenue Estimates, as presented to the Overview and Scrutiny Committee on 23 January 2025, together with the subsequent adjustments detailed at paragraph 9.5, be endorsed and adopted by Council;

(3)        the Capital Plan be updated, as set out at paragraph 11.10, and adopted by the Council;

(4)        the Capital Strategy as presented to the Overview and Scrutiny Committee on 23 January 2025, be endorsed and adopted by Council;

(5)        the prudential indicators listed in paragraph 12.7, including the liability benchmark indicator and 12.11, be endorsed and adopted by the Council;

(6)        for the financial year 2025/26, the Borough Council’s annual minimum revenue provision be noted as ‘nil; subject to the comment at paragraph 12.8;

(7)        the updated MTFS, set out at Annex 10a be noted and endorsed;

(8)        the updated Savings Transformation Strategy, attached at Annex 10b, including the proposed scale and timing of each of the required savings and transformation contributions set out  ...  view the full minutes text for item 12