Agenda item

Report of Cabinet Member for Finance and Assets

To follow as a supplement

The Cabinet Member for Finance and Assets said there would be further discussion of the budget proposals at Council on Friday, but the main issue to note today is that the news from central government about local government reorganisation was received before Christmas, when officers were half-way through setting a long-term budget – so there are some significant changes to the budget which was out for consultation over the festive period, to ensure the council still has money in reserve and that essential services have the support they need for several years to come.  

She said it is a budget for a time of uncertainty but not paralysed by that – it would not feel right, as Cabinet Member with responsibility to safeguard council tax payers’ money, to sit on her hands and just hope the right decisions for the people of Cheltenham will be made in the future.  When Cheltenham is part of a far larger geographical area, it will be harder to understand the street level detail of what the town needs, so it is important in the very narrow window between now and the abolition of Cheltenham Borough Council to make the right decisions and set the cards right for whatever comes next.   This budget does so.

The Cabinet Member for Housing and Customer Services thanked the Cabinet Member for Finance and Assets for the budget and for raising these concerns, saying the last thing anyone wants is for Cheltenham people to find they don’t have a voice.    CBC has always managed its finances well, from building and refurbishing of homes to well-run and maintained parks.  She looked forward to further discussion at Full Council.

The Cabinet Member for Waste, Recycling and Public Realm noted that one welcome change to the draft budget is the additional £90k allocated towards streets and ground work, allowing more staff for cleaning streets -  it is good to show that we are listening to residents’ concerns and doing something about them. 

The Cabinet Member for Major Development and Housing Delivery thanked the Cabinet Member for Finance and Assets.  He said that balancing the books has always been tricky and even though we are facing an abyss in future years, we still have to provide services and look after our residents.  This budget does that, supporting people and investing in our beautiful town through sound financial management and without cutting services.  This is to be celebrated.

The Leader said we are continuing to deliver in line with our corporate plan, and have done everything possible to ensure that residents realise we will continue to deliver services and that they will still have a voice in the future.  To do this, we need to set realistic budgets, including putting some money in reserve to ensure that we leave the council’s finances in the best possible state.  She said an immense amount of work goes into the report and final budget, and thanked the Cabinet Member for Finance and Assets and the officers who produced the reports.

RESOLVED THAT:  Cabinet recommends that Council:

1.    Approves the revised budget for 2024/25 which is reported as part of the budget monitoring process for 31 December 2024 in Section 6 and Appendix 17.

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

3.    Approves the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £244.79 for the year 2025/26 based on a Band D property (an increase of 2.99%), as detailed in paragraphs 9.1 to 9.6.

4.    Approves the savings / additional income totalling £1,130,000 and the budget strategy at Appendix 4.

5.    Approves the revenue growth items totalling £392,647 at Appendix 5.

6.    Approves the capital programme at Appendix 6.

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

8.    Approves the programmed maintenance programme at Appendix 8.

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

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

11.Notes the Council position in relation to the Gloucestershire business rates pool for 2025/26.

12.Approves the Pay Policy Statement for 2025/26, including the continued payment of a living wage supplement at Appendix 11.

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

14.Approves the proposed fees and charges schedule for 2025/26 at Appendix 13, subject to appropriate consultation where required.

15.Approves the Minimum Revenue Provision Policy 2025/26 at Appendix 14;

16.Approves a level of supplementary estimate of £100,000 for 2025/26 as outlined in Section 18.

Based on the information included in Section 15 of this report:

17. Approves the delivery of the Mobility Hub as a single-phase construction and increase the Councils commitment under the Development Funding Agreement to facilitate this change.

18. Notes that a single-phase delivery is forecast to generate a further £4.8m in land receipts to the Council.

19. Notes that despite an increased funding commitment under the Development Funding Agreement, this is more than offset by the provision of £20m in Levelling Up Funding; overall borrowing is circa £10.6m lower than previously approved.

20.Delegates authority to the Deputy Chief Executive (Section 151 Officer) in consultation with the Cabinet Member for Major Developments and Housing Delivery to finalise the terms of a Deed of Variation to the Development Funding Agreement.