Issue - meetings

Report of the Cabinet Member for Finance and Assets

Report to follow.

The Mayor explained the process, then invited that Cabinet Member for Finance and Assets to introduce the budget.  He began by highlighting the following points:

-        despite another 12 months of economic uncertainty and instability and the cost of living crisis, the budget is driven by support residents and investing in the town;

-        we are faced with severe national and local challenges – a housing crisis, climate crisis, broken NHS and social care systems, mental health crisis, ecological crisis, poverty crisis, and struggling education and police services;

-        the national debt is hovering around almost 100% of GDP; in 2022-23, the current government spent around £108bn servicing the debt, more than it spent on education, and over £100bn-worth of waste and fraud has been identified by the parliamentary accounts committee;

-        moving on to the challenges of the local authority funding crisis, for over a decade local authorities have been under unprecedented, sustained pressure with government funding reduced by around 50%, below-inflation council tax rises, and commercial-driven revenue savagely affected by the government’s mini-budget and economics which, with cost and demand pressures rising faster than funding, will, by 2024-25, have added £15bn (28.6%) to the cost of delivering council services;

-        eight authorities have issued 114 notices, unable to balance their budgets and facing bankruptcy, and a recent LGA survey shows that one in five authorities are likely to issue a 114 notice this year or next.  Financial resilience in the sector is at an all-time low as a result of the current government’s political choices;

-        it isn’t true to say that Cheltenham gets a good deal – it is the 19th worst-funded council in the country, despite delivering vital services and support to vulnerable residents.  The council’s financial resilience has been tested – we have innovated, changed the shape and structure of the council and how services are delivered, and continue to find efficiencies, savings and additional income to bridge the funding gap, which takes time, resources and no small effort from Cabinet colleagues and officers across the council.

He then moved on to the ways in which our strategy enables the council to continue to deliver services, support residents, invest in the town and put Cheltenham first:

-        keeping all our services running efficiently and effectively to support businesses, the daytime and night-time economy and our residents;

-        directing grant funding to support our leisure and cultural sector, also working collaboratively and in partnership, underpinning the town’s economic activity and preserving its uniqueness, loved by residents and visitors;

-        supporting vulnerable residents with our council tax discount scheme, benefit and money advice measures, working with Cheltenham’s food network, and supporting voluntary and community organisations through the third sector rent support policy;

-        working to reduce CO2 emissions whilst promoting biodiversity in Cheltenham’s parks and gardens;

-        leading the way with kerbside recycling and being the only district council in the country to offer its residents a town household recycling centre.

He said the budget underpins our  ...  view the full minutes text for item 9

Report of the Cabinet Member for Finance and Assets, Councillor Peter Jeffries

Report to follow.

The Cabinet Member for Finance and Assets apologised for the extraordinary meeting, due to the  last-minute funding support for local authorities announced by the government.  He said officers had taken a bit more time to get the budget right.  The paperwork had been circulated, and he said he would present a full report at Council, but was happy to take any questions.

The Cabinet Member for Economic Development, Culture, Tourism and Wellbeing asked about the difficulties in preparing the budget within the timetable given to us by government as a result of their late declaration.  The Cabinet Member for Finance and Assets confirmed that it is always a challenge, particularly with the one-year settlements of the last few years, and declarations are always made too late in the process.  It would make officers’ jobs a lot easier if these came earlier, and multi-year settlements would also be very helpful.

The Cabinet Member for Safety and Communities said that, working with the Local Government Association on different matters, she sees council after council unable to meet their obligations, and looking at what officers and Cabinet colleagues have achieved in Cheltenham, she had to say what a good job they have done with the budget – not only investing in council housing, but also in families, children, communities and a host of organisations and facilities around the country which other councils are closing down.  She thanked them all for the commitment, consideration and hard work.

The Cabinet Member for Finance and Assets thanked her for her comments.

RESOLVED THAT: Council is recommended to:

1.    approve the revised budget for 2023/24 which is reported as part of the budget monitoring process for 31 December 2023 in Section 6;

2.    consider the budget assessment by the Section 151 Officer at Appendix 2 in agreeing the following recommendations:

3.    approve the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £237.68 for the year 2024/25 based on a Band D property (an increase of 2.99%), as detailed in paragraphs 9.1 to 9.6;

4.    approve the savings / additional income totalling £2,741,000 and the budget strategy at Appendix 4;

5.    approve the revenue growth items totalling £158,000 at Appendix 5;

6.    approve the capital programme at Appendix 6;

7.    approve the use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 7;

8.    approve the programmed maintenance programme at Appendix 8;

9.    approve the Medium Term Financial Strategy (MTFS) detailed in Appendix 9;

10.approve the flexible use of capital receipts strategy as detailed in Appendix 10;

11.note that the Council will remain in the Gloucestershire business rates pool for 2024/25;

12.approve the Pay Policy Statement for 2024/25, including the continued payment of a living wage supplement at Appendix 11;

13.note the responses to the questions raised during the budget consultation in Appendix 12;

14.approve the proposed fees and charges schedule for 2024/25 at Appendix 13, subject  ...  view the full minutes text for item 5