Agenda and draft minutes
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Contact: Susan Gardner, Policy and Scrutiny Officer
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Apologies for absence, Substitutions, Declarations of Interest and Dispensations Minutes: There were no apologies for absence and no substitutions.
There were no interests or dispensations declared at the meeting. |
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Minutes of Last Meeting The Minutes of the meeting of Resources Overview & Scrutiny Committee held on 20th January 2025 were submitted for approval as a correct record.
Recommended - That the Minutes be received and approved as a correct record.
Minutes: The Minutes of the meeting of the Resources Overview & Scrutiny Committee held on 20th January 2025 were submitted for approval as a correct record.
Resolved - That the Minutes be received and approved as a correct record. |
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Medium Term Financial Strategy To consider the three year projections of income and expenditure for the Council ahead of formulating its 2025/28 Revenue and Capital Budgets.
Recommended - That consideration be given to the report.
Minutes: The Portfolio Holder for Resources, Councillor Alexander, submitted a report giving the Council’s Medium Term Financial Position for 2025/26 to 2027/28. The report had been submitted to Cabinet on 12th February 2025 and the report and the accompanying Medium Term Financial Strategy as set out in the report, had been approved.
The Strategy was appended to the report and set out the three year projections of income and expenditure for the Council ahead of formulating its 2025/28 Revenue and Capital Budgets. The Strategy provided a summary of the main issues taken into account when setting the budget including:-
- The continuation of delivering the Council’s major capital projects including Levelling Up/Town Centre regeneration, Leisure transformation and securing funding to facilitate the development of over 1,800 new homes at Huncoat. - The consequence of both national and global issues. - The Council’s own financial position including inflationary pressures and energy costs. - The financial forecasts over the next 3 years including the uncertainty around the impact of any Government Financial reforms and increased pressures on spending or other financial challenges which could create a significant variance around the forecast.
As a consequence of the issues raised above, there is a real possibility that Government funding would continue at current levels over the next few years and therefore, this would present the Council with two very different future budget scenarios. These scenarios are modelled in the report with the most severe scenario being the Pessimistic model and the other the Standard model. A third model was also presented, the Optimistic model, which was provided should the Council’s financial position be boosted with a cash injection from the Government, although this was considered very unlikely.
The appendix attached to the report also provided more detail on:
· Elements of the MTFS · Background · Resources · Government Grant · Council Tax · Business Rates · Changes in Costs · Budget Pressures · Capital Costs · Growth · Reserves · Other Assumptions · Scenarios and Scenario Breakdowns · Robustness of the Forecast · Overall Net Position · Details of each of the 3 scenario models
Members submitted two questions in advance of the meeting, in respect of finding out more about when Local Government Reforms were likely to take place and the impact on the Council and how the Council was able to plan when there was uncertainty around Government plans in respect of the amount of business rate income retained by Local Government.
Members were informed of the Government’s intention to redress the imbalance of funding and minimise future uncertainty by introducing multi year settlements and that the Council had considered its options around positive and negative impacts by producing the 3 model scenarios: Optimistic, Pessimistic and Standard. The Committee was also informed that the Council could not plan financially, with certainty, until Government reform plans had been revealed.
Members also raised the following issues:
· Use of Mercer Hall · The new food waste service and waste transfer costs and site. · Financing of grass cutting
Responses were provided in respect of provision of funding for these items.
Cabinet ... view the full minutes text for item 338. |
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To set out the Council’s policy and objectives with respect to treasury management, to explain how it will achieve its objectives and manage its activities; and to agree an investment strategy for 2025/26.
Recommended - That consideration be given to the report.
Minutes: The Portfolio Holder for Resources, Councillor Aziz, submitted a report setting out the Council’s Prudential Indicators and Treasury Management and Investment Strategy 2025/26 to 2027/8 which sets out the Council’s policy and objectives with respect to treasury management, to explain how it will achieve its objectives and manage its activities; and to agree an investment strategy for 2025/26. The report had been submitted to Cabinet on 12th February 2025. Councillor Aziz thanked the Executive Director, Resources, and the Council’s Finance Team for their hard work in producing the report.
The following details were summarised in the attachment to the report:-
Also included with the report are the Treasury Management Policy Statement 2025/26 and the Treasury Management Practices 2025/26 and the Capital Strategy 2025/26.
Members submitted two questions in advance of the meeting, firstly, in respect of finding out more about the level of risk the Council was willing to take to ensure the best use of Council finances. Members were informed that the report included details of how the Council managed risks associated with its finances including the Code and Guidance it operated under.
Secondly, in respect of the General Data Protection Regulations (GDPR) being a possible risk to reserves. Members were informed that the Council took its GDPR responsibilities very seriously and understood the severity of any breach of the law.
Cabinet made the following recommendations to Council:
(1) To adopt the prudential indicators and limits detailed in the report;
(2) To approve the Treasury Management Strategy, and associated indicators, as set out in Appendix 1 to the attached report;
(3) To approve the Investment Strategy as set out in Section 13 of Appendix 1 to the attached report;
(4) To approve the Minimum Revenue Provision Policy for the year 2025/26 – as set out in Section 5 of Appendix 1 to the attached report;
(5) To approve the Treasury Management Policy Statement for 2025/26 – Appendix 2 of the attached report
(6) To approve the Treasury Management Practices Statement 2025/26 – Appendix 3 of the attached report;
(7) T0 approve the Capital Strategy 2025/26 – Appendix 4 of the attached report.
Resolved - That the contents of the report be noted.
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General Fund Revenue Budget 2025/26 This report sets out proposals contained in the Revenue Budget Report 2025-2026 as attached at Appendix A. It also provides an overview of key issues arising from the Medium Term Financial Strategy.
Recommended - That consideration be given to the report.
Minutes: The Portfolio Holder for Resources, Councillor Alexander, submitted a report setting out proposals for the 2025/26 General Fund Revenue Budget, as attached at Appendix A of the report. This also provided an overview of key issues which had arisen from the Medium Term Financial Strategy.
The Council’s 2025/26 Revenue Budget required a net expenditure of £17,313,300 and under the budget proposals, Council Tax for Hyndburn residents would incur a rise in charge for Hyndburn Council provided services. The charge for a Band D property would increase from £268.43 in 2024/2025 to £276.46.
A number of national and global issues had had an impact on the Council’s budgets along with the impact of higher inflation and forecast pay settlements contributing to the Council raising its element of the Council tax by the maximum 2.99%, an increase of £8.03 annually on a Band D property. Lancashire County Council, the Police & Crime Commissioner and the Lancashire Combined Fire Authority have not yet formally taken their decisions on Council Tax levels for 2025/26. It is expected that all three authorities will raise its Council Tax. Relating to Band D properties, Lancashire County Council is expected to raise its Council Tax by 4.99%, the Police and Crime Commissioner to increase by 5.31% and Lancashire Combined Fire Authority by 5.90%.
Altham Parish Council has set a separate precept requirement for its activities and has decided to increase its precept by 2.66% and therefore, a Band D charge would increase from £43.18 for 2024/25 to £44.33 for 2025/2026. The Parish Council will precept the Collection Fund for £14,185.60 for 2025/26. Details of the proposed position on other Bandings for properties in Altham are shown in Appendix 6 of the report.
The Council faces continued volatility around some of the most significant items within its Budget. Major reforms of local government finance have transferred the risk of business rate revenues and Council Tax benefits to the Council. The certainty on which the Council could budget and manage its finances has therefore decreased since 2013. The Committee was informed of the importance of plotting any deviations away from the expected figures and taking appropriate action should these start to emerge, which could result in the need to reduce spending during the year.
However, Committee was informed that Cabinet intended to continue managing the Council’s affairs effectively by continuing its successful policies to manage costs effectively and promoting appropriate service investment. It would therefore:
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The report informs the Committee of the proposed capital programme for 2025/26-2027/28.
Recommended - That consideration be given to the report.
Minutes: The Portfolio Holder for Resources, Councillor Alexander, submitted a report relating to the Council’s Capital Programme 2025/26 – 2027/28.
The report sets out the Council’s capital programme for 2025/26 including forecast slippage on schemes from 2024/25 and the additions of new schemes to the Council’s Capital Programme for 2025/26. The significant level of investment in previous years has only been possible by the Council obtaining external financial support, as well as the Council’s own effective financial management over recent years which has allowed it to have the funds necessary to finance these major projects when other funding has become available. The new additions to the capital programme have reduced to £2.476m compared to £4.404m in 2024/25. External funding of £1.538m has been confirmed towards the cost of the new capital schemes, Disabled Facilities Grant and UK Shared Prosperity Funding with a further £0.052m funding to be secured.
The additions to the programme in 2025/26 will bring the total approved capital programme to £26.054m, including forecast slippage of the unspent programme from 2024/25 of £23.578m, which can be seen in Appendix 1 of the report. The forecast slippage from the 2024/25 programme includes £4.555m for the Leisure Estate Investment Programme and £16.789m for the Levelling Up Programme. The capital budgets for the Levelling Up Programme are based on the latest forecast of costs and are still subject to change.
The funding of the 2025/26 capital programme is based on the realisation of additional capital receipts during the year. The programme assumes £3.092m of expenditure will be funded from capital receipts, of which £0.595m relates to the King George V Pavilion and pitches scheme which is contingent on funding from the disposal of land. £1.147m in available receipts is forecast to be brought forward at the beginning of the year, leaving a target of £1.350m of new receipts which are required, which if not realised will need to be replaced by funding from earmarked reserves.
The capital programme currently excludes the proposed Huncoat Garden Village scheme which will be wholly funded from the Home England Brownfield Infrastructure and Land Fund grant of £29.898m. When the funding agreement is approved, the capital and revenue costs of the scheme and associated funding will be submitted for inclusion in the Council’s revenue and capital budgets.
The expected new schemes for 2026/27 and 2027/28 (totalling £2.4m) are detailed in Appendix 3 of the report. This is for information only as funding will need to be identified for these schemes before they are put forward for approval into the programme in future years.
The Council intends to continue its strong policies of financial management and look only to borrow what it needs to fund these major investment projects. It will continue to rely on securing external sources of funding, using capital receipts, making revenue contributions to capital projects will use unspent monies to fund its programme.
The Revenue implications to finance the Capital Programme continue to be a key element in the affordability issues on the Revenue ... view the full minutes text for item 341. |
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Alternative Budget Proposals Opposition groups are invited to table any budget proposals for 2025/26 for consideration by the Committee.
Recommended - That consideration be given to any alternative budget proposals submitted.
Minutes: The Main Opposition Group (Conservative Group) did not submit an amendment to the proposals for the Council’s 2025/26 Budget. A representative from the Green Party was also not present to submit any comments/suggestions to the scrutiny of the Council’s proposed budget.
Resolved - That there were no amendments submitted at the meeting.
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Representations and Questions from Members of the Public and Individual Members of the Council on the Budget The Leader of the Council (or his representative) to receive and respond to representations and questions from members of the public and individual members of the Council relating to the 2025/26 budget proposals.
Recommended - That the Committee give consideration to the questions submitted and the responses from the Leader of the Council (or his representative).
Minutes: There were three questions submitted by a Member of the Public. The questions related to issues relating to grant payments issued to the Hyndburn Leisure Trust and to the use of delegated powers to manage any additional changes to the Council’s budget, throughout the year. Responses were provided at the meeting.
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Scrutiny Comments and Resolutions to be Submitted to Council As part of the Council’s budget setting process, any comments or recommendations from the Resources Overview and Scrutiny Committee relating to the budget will be submitted to Council on 27th February 2025.
Having given consideration to all of the information received in this meeting, this Committee will determine its comments and any recommendations to be submitted to Council. Minutes: The Chair thanked the Cabinet Portfolio Holders, Councillors Alexander and Aziz for submitting their budget proposals and comments for consideration at the meeting. He reported that a report and the decisions reached during the meeting of the Committee would be submitted to Full Council on 27th February 2025. Resolved - That Council be requested to note the following resolutions of the Committee:- (1) That the contents of the following reports be noted:- Prudential Indicators and Treasury Management and Investment Strategy 2025/26 to 2027/28 Medium Term Financial Strategy 2025/26 to 2027/28 General Fund Revenue Budget 2025/26 Capital Programme 2024/25 to 2027/28 (2) That the contents of the General Fund Revenue and Capital Programme 2025/26 reports be supported; (3) That the Committee thanks the Cabinet Portfolio Holders for their participation and contribution to the scrutiny of the Budget process. (4) That the Executive Director Resources, and all other officers involved, be commended for their work in producing the budget.
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