Agenda item

This report sets out proposals contained in Revenue Budget Report 2024-2025 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

The Portfolio Holder for Resources, Councillor Britcliffe, submitted a report setting out proposals for the 2024/25 General Fund Revenue Budget which also provided an overview of key issues which had arisen from the Medium Term Financial Strategy.  The 2024/25 Revenue Budget required a net expenditure of £15,998.500 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 £260.64 in 2022/2023 to £268.43.  The impact of the war in the Ukraine, higher inflation and higher than forecast pay settlements has contributed to the Council raising its element of the Council tax by the maximum 2.99%, an increase of £7.79 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 2024/25.  It is expected that all three authorities will raise its Council Tax.  Altham Parish Council has set a separate precept requirement for its activities and has decided to increase its precept by 5.14% and therefore, a Band D charge would increase from £41.07 for 2023/24 to £43.18 for 2024/2025. The Parish Council will precept the Collection Fund for £13,668 for 2024/25.  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 and the certainty on which the Council could budget and manage its finances has therefore decreased since 2013.  However, Cabinet intends to continue managing the Council’s affairs effectively and to promote appropriate service investment and the savings target was deemed achievable. It would therefore: 

·         Continue to limit enhancements on early retirement, continue a rigorous approach to absence management and commit to minimising borrowing costs. 

·         The Capital Programme for 2024/25 will continue to deliver key investment in council and public facilities.

·         A large proportion of the capital programme will be phased over the next few financial years which includes the delivery of £24m investment in Accrington Town Centre and a £12m investment in the borough’s Leisure Estate.

·         Continue free parking in Hyndburn Borough Council.

·         Rationalise the use of Council buildings and continuing to look at ways of reducing carbon emissions and energy costs.

The following information was attached to the report, which had been submitted to Cabinet on 13^th February 2024:- 

·         Background to Revenue Budget 2024 -25

·         Medium Term Financial Strategy

·         Continuation Budget

·         Growth & Inflation Pressures

·         Available Resources

·         Resources Summary

·         Budget Proposal

·         Budget Saving Proposals

·         Reserves

·         Risks & Management

·         Consultation

·         Conclusion

·         Appendix 1 –   Initial Outline Budget 2024/25

·         Appendix 2  -  Revenue Budget 2024/25

·         Appendix 3  -  Budget Movements in Year 2024/25

·         Appendix 4  -  HBC Tax Increase 2024/25 by Property Band

·         Appendix 5  -  Estimated Overall Change in Council Tax 2024/25

·         Appendix 6  -  Altham Parish Precept by Property Valuation Band 2024/25

Cabinet made the following recommendations to Cabinet:

                                                  (1)   That Cabinet recommends to Council the proposal to increase Council Tax for 2024/25 by 2.99%, increasing the charge for a Band D property to £268.43.

(2)    The Budget for 2024/25 will therefore be £15,998,500 as detailed in Appendices 1 to 3 of the Revenue Budget 2024-2025 report, attached at Appendix A to the covering report.

(3)    That Cabinet recommends approval of the changes in budget requirement through including inflation, growth and savings identified in Appendix 3 of the Revenue Budget 2024-2025 report, to ensure the Council can set and approve a balanced budget.

(4)    That Cabinet notes the significant improvement made in relation to budget monitoring and cost reduction within the Authority over the past 20 years and confirms its commitment to continuing this approach in the year ahead.

(5)    That Cabinet recommends during the financial year 2024/25, the Executive Director (Resources) be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) for technical reasons, such as the restructuring of cost centres, the re-apportionment and re-allocation of overheads etc., provided such amendments have an overall neutral impact on the Budget.

(6)    That Cabinet recommends during the financial year 2024/25, the Executive Director (Resources) be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) should the estimate of Business Rates not be sufficiently accurate, by drawing on reserves if needed or paying over additional contributions to reserves.

(7)    That to aid future financial management planning any surpluses generated during 2024/25 are set aside to help the Council reduce its cost base over the next three years, to support its long term capital programme or to strengthen its overall reserve position.

(8)    That Cabinet recommends that the Services, Funding Guarantee and New Homes Bonus Grants awarded for 2024/25 are used to help balance the Council’s Budget.

(9)    That Cabinet recommends that any additional funds from Government that are not ring-fenced funding as well as any other surplus funds can be used if required to support Capital expenditure as determined by the Executive Director (Resources) in the overall financing of capital expenditure or be transferred to Reserves.

Resolved                               -   That the contents of the report be noted and supported.