Agenda item

To consider a report of the Deputy Chief Executive and Director of Corporate Operations regarding the proposed revenue budget and precept for 2025/26.

Cabinet received a report of the Deputy Chief Executive and Director of Corporate Operations regarding the proposed revenue budget and precept for 2025/26.

The Monitoring Officer highlighted that all Councillors were Council Tax payers and would normally declare an interest when considering the rate of Council Tax to set, however, a general dispensation from the Conduct Advisory Panel was in place to allow all Councillors to take part in debates and decisions regarding Council Tax.

The Deputy Chief Executive and Director of Corporate Operations summarised the report and highlighted a number of changes to the figures that had been received since publication, which resulted in a net increase of £3.2 million. It was noted that the budget proposals included an assumption that the savings in the report would be agreed. If those savings were not agreed, then any difference would need to be met from the budget bridging reserve.

Cabinet Members noted that there would be hard decisions to be made in the coming year in order to focus available funds on services for the most vulnerable. It was noted that in previous public consultations regarding the budget less than 20% of respondents supported an above 5% Council Tax rise.

The Chairman of the Cabinet proposed that the Cabinet not support raising Council Tax by more than the cap. He noted that the Council had a track record of finding savings and that the Independent Panel Report had identified further opportunities. There would be a focus on the Council’s core purpose and Legal Minimum Service Levels going forwards. He noted that it was not sustainable to use reserves to fund the revenue budget in future.

RESOLVED:

Cabinet agrees to: 

1. Note and take account of the Chief Financial Officer’s Section 25 report on the Budget. 

2. Approve the updated cash limits for directorates for 2025/26 as set out in Appendix 2 as updated by the changes outlined by the Chief Financial Officer. 

3. Note the report from the Independent Panel who supported the Council’s work on reviewing Legal Minimum Service Levels  

4. Delegate authority to the Director of Corporate Operations, following consultation with the Leader and the Chief Executive to make changes to the budget following Cabinet to take account of new issues, changes to figures notified by District Councils or any late changes in the final Local Government Finance Settlement. 

5. Approve for submission to County Council and subject to further consultation where necessary, the savings proposals in Appendix 7; after taking due regard of the Equality Impact Assessments in Appendix 8 and the Cumulative Equality Impact Assessment in Appendix 13. 

6. Approve that the Chief Executive and Corporate Management Team can progress any Phase 3 Savings Proposals where these do not have a direct impact on services provided to the public. 

7. Note that the Council’s request to the Government for Exceptional Finance Support was not approved and for the reasons outlined in the meeting, Cabinet do not support triggering a referendum. 

Recommend that the County Council approve: 

1. That County Council notes and takes account of the Chief Financial Officer’s Section 25 report on the Budget when the Council determines the budget and precept for 2025/26. 

2. The Revised Budget for 2024/25 as set out in Appendix 1 to the main Budget Report. 

3. The Revenue Budgets for Services for 2025/26 as set out in Appendix 3 to the main Budget Report. 

4. The overall Revenue Budget for the County Council as set out in Appendix 5 to the report and as updated by the changes outlined by the Chief Financial Officer which now requires a draw from the Budget Bridging Reserve of £64.936m. 

5. The Savings proposals set out in Appendix 7, taking account of the Equality Impact Assessments detailed in Appendix 8 and the Cumulative Equality Impact Assessment in Appendix 13 and subject to any stage 2 consultations that may be required. 

6. The Reserves Strategy at Appendix 10 to the main Budget Report. 

7. The council tax requirement for the County Council for the year beginning 1 April 2025 of £876,369,719.30. 

8. The County Council’s band D council tax for the year beginning 1 April 2025 is £1,609.83, an increase of 4.995%, of which 2% is specifically for adult social care. 

9. The County Council’s council tax for the year beginning 1 April 2025 for properties in each tax band is: 

10. Precepts be issued totalling £876,369,719.30 on the billing authorities in Hampshire, requiring the payment in such instalments and on such date set by them previously notified to the County Council, in proportion to the tax base of each billing authority’s area as determined by them and set out in the table below.  

11. The Capital & Investment Strategy for 2025/26 (and the remainder of 2024/25) as set out in Appendix 11 to the main Budget Report. 

12. The Treasury Management Strategy for 2025/26 (and the remainder of 2024/25) as set out in Appendix 12 to the main Budget Report. 

13. Authority is delegated to the Director of Corporate Operations to manage the County Council’s investments and borrowing according to the Treasury Management Strategy Statement as appropriate.