Issue - meetings

Appendix A to this report will be published in a Supplementary Papers pack to this agenda.

The Deputy Chief Executive and Section 151 Officer presented the Medium-Term Financial Plan (MTFP) - Tranche 2 Budget including Fees and Charges (following consultation) report for the consideration of Cabinet.

As a result of the recommendations agreed during Minute item 69/24 there would need to be some adjustments made to the MTFP and this will be reported to the Cabinet and Council at the meetings due to take place on 19^th February 2025 as the agendas for these meetings had already been published. It was reported that these amendments would reflect the following:

1)    An additional £85,000 be added to parking budgets, which is broken down as:

                                              i.          Additional funding of £70,000 for increased numbers of Civil Enforcement Officers (CEOs)

                                             ii.          £15,000 for maintenance of an Automatic Number Plate Recognition (ANPR) system

2)      £100,000 added to the Capital Budget in 2025/26 for ANPR systems to Recreation Road South, St Johns and Windsor Street car parks.

Members were informed that the Council had set its budget in two Tranches this year, as it had during the 2024/5 Medium Term Financial Plan (MTFP) process. The initial Tranche was published in December 2024 and approved initial pressures and increases at Council in January 2025. This second Tranche should be considered as the final now that the Local Government Settlement figures were known.

It was highlighted that as with many Local Authorities the additional National Insurance contributions would impact on the budget. Members were informed that Bromsgrove District Council currently had a shortfall of £200,000 per annum. Furthermore, it was noted that not all Grant allocations were currently known.

Departmental changes, due to contract pressures had also been taken into account. These departmental changes resulted in an overall £1.387million revenue pressure in the 2025/6 financial year and then £938,000 by 2027/8.

At Tranche 1, there was a £1million deficit which needed to be closed, rising to an ongoing £1.5million in 2027/8. It was clarified that £1million of this ongoing amount from 2026/7 onwards was linked to the impact of the delivery of the Food Waste Service at the Council.

The Provisional Local Government Settlement was made on 18^th December 2024. In that Settlement the Council’s Core Sending Power was unchanged at £13.42million. This zero increase in spending power resulted in a significant change in funding with Councils now expected to have a 2.99 per cent increase in Council Tax to get to that a ‘break even’ position, with a reduction of ‘Other Grants’ by a corresponding amount.

It was reported that the Government had given specific targeted Grant Funding for a number of initiatives. This funding was single year, as Local Government funding was due to change significantly for the 2026/7 settlement.

The impacts on the Council for this targeted funding was detailed as follows:

·       £700million additional grant funding – Bromsgrove District Council had not received any additional grant funding.

·       Council Tax in Tranche 2 would be increased from 1.99 per cent to 2.99 per cent.

·       £233million additional Homelessness Prevention Grant –  ...  view the full minutes text for item 70