Agenda item

Report of the Cabinet Member for Finance and Assets

After explaining the process to Members, the Mayor invited the Cabinet Member for Finance and Assets to introduce her report.

The Cabinet Member for Finance and Assets said the devolution white paper published before Christmas had left the council in the dark when shaping its budget, and unclear on how to plan for the future without knowing how long that future would be. She said she has been criticised in recent weeks for being too political when talking about the budget in the context of local government reorganisation, but said she feels strongly that local government decision-making and control over its spending is inherently political. She believes that a strong central government should collaborate with local authorities, be willing to learn from the people who know their communities best, and offer its expertise, whereas a weak government assumes that cooperation is impossible and chooses the simplest solution – fewer councils, fewer voices, and fewer people to stand in its way.  She said she would question any plan that required the abolition of an entire tier of government to work. 

She went on to say that at times like this, CBC must do everything in its power to make a positive dent in the wall of anger, resentment and frustration that defines politics today, and although we may not have all the choices that we would like, what we do with those choices is what really matters.  In this critical window – maybe the last when decisions about Cheltenham will be made in Cheltenham by the people who know Cheltenham best – it was important to make the most of the choices we have, and so the budged includes:

-       major investment in parks and gardens, with increase in staff time;

-       installation of electricity infrastructure at festival sites to ensure our iconic festivals are more sustainable for the planet and for future generations;

-       continued investment in the Golden Valley Development, to future-proof careers for people in Cheltenham, and build homes, transport links and more green spaces; future profits from this home-grown investment will come back help fund public services, depending on what the new authority chooses to do with them;

-       protection of the town’s regency heritage with an expanded planning team, and easier, quicker access to planning advice;

-       support for veterans, many of whom exist just above the poverty line, by ensuring that armed forces compensation scheme income isn’t counted when council tax discounts are assessed;

-       bucking the trend by reopening underused community buildings, to bring people back and leave a legacy of spaces to be enjoyed for many years to come; 

-       creating fiscal breathing room to make the most of every last minute of the next few years with smarter and faster decisions.

She said she didn’t want to regret choices that the council could or should have made if it had the money to make them, and that this is the first budget proposal in nearly five years where the contribution to balances and reserves far exceeds the new savings we have to find – an incredible achievement, with so many councils facing bankruptcy. In 2024, our budget required £2.47m savings to make a £629k contribution to general balances; if Members back today’s budget, it will only need to find £500k in new savings or additional income to contribute £560k to general balances and £939k to earmark reserves – this is the result of hard choices. 

This budget sets a singular goal of making fewer heart-breaking choices and giving greater options and flexibility as we face an uncertain future in local government. It does all it can to safeguard Cheltenham’s future, from the pensions of hardworking staff to improving homes for tenants, to ensure we are in the best possible position before abolition.  She said that come what may, we stand with our town, committed to delivering the best services and the best future for Cheltenham.

The Cabinet Member for Major Development and Housing Delivery seconded the budget proposals and reserved the right to speak.

Questions

In response to a Member’s question, the Cabinet Member for Finance and Assets confirmed that a Schedule D property will face an annual increase of £7.00 in its council tax bill (2.99%).  The Member said this is amazing, in view of all that CBC does for its communities, organisations, businesses, and No Child Left Behind.  She thanked officers, Cabinet Members and colleagues for all of this.

The Mayor said it was also worth bearing in mind that the vast majority of council tax income goes to the county, and also to the police and crime commissioner’s office, with CBC receiving the smallest share.

There were no questions for the S151 officer.

Statements from Group Leaders

The Leader of the Green Group thanked that Cabinet Member for Finance and Assets for her comprehensive speech, and recognised the difficult challenges she had faced in her first year in post.  She said the Green Party was particularly pleased to note:

-       the refurbishment of the public toilets in Montpellier, including a Changing Places facility.  These are an absolute necessity and it is great use of public money to update and make them more inclusive.  She said the delay was regrettable but it has to be done right;

-       extra funding for apprenticeships, which offer great job and education opportunities and will benefit many young people;

-       the huge reduction on exposure to gas and oil investments, from £120k in December 2024 to £61k now.  It is essential to keep making positive steps to take the number as close to zero as possible.

She said that the Green Group has been thinking about what it would like to see in a future budget, and with officer advice, would ask that the following suggestions are considered:

-       a re-evaluation of car park charges, based on existing projects elsewhere in the country, redirecting profits to air quality improvement schemes;

-       the delivery of recycling receptacles to leisure centres and community hubs rather than direct to people’s homes, which would incentivise people to visit, encourage them to recycle, and remove the individual delivery fee.

She said the budget was a refreshing read this week in particular, focussing on local issues and things which really matter to us, such as maintenance of our parks and gardens.  She thanked residents who fed in and all staff who worked on the budget, for their hard work in preparing a very comprehensive report.  

The Green Group had no budget amendments

Debate

In debate, Members thanked and commended the Cabinet Member for Finance and Assets and all the finance team for achieving a financially sound budget in the face of uncertainty and the failings of others, and made the following comments: 

-       the council has effectively had to subsidise the county council for many years, including maintaining the Household Recycling Centre and support for people in need through No Child Left Behind. Neither of these are the council’s statutory responsibility, yet CBC has found the money without invoicing Shire Hall because the Liberal Democrats care;

-       the county council’s election leaflets accuse CBC of being incompetent and not good with money, yet it has squandered at least £250k on the failed Zone 15 parking scheme, causing considerable inconvenience and stress to residents.  The county will use the budget to try to deflect attention from its own failing administration, but CBC has a mandate and a mission, and will continue to fight for the people of Cheltenham;

-       it is clear that an huge amount of work has gone into creating the budget, and it is worth repeating that CBC only receives 11% of council tax, with 14% going to the Police and Crime Commissioner’s Office and the remaining 75% to the county. With its small share, the council has always undertaken a huge amount of work, and it is regrettable that changes to the HRC, which was never CBC’s statutory responsibility,  are still giving rise to a great deal of criticism through the press and social media;

-       the council goes above and beyond to provide discretionary services and step in where others have failed, and it is good that the county is finally doing something about Zone 15 parking after many years of problems and a huge waste of money.  CBC does a great deal with its 11% share of council tax, and the budget doesn’t waste money.  There are many concerns as we look to the future, and it is to be hoped that this budget sets the standard for future authorities to build on – this is what our town and our residents expect, want and deserve;

-       a welcome change from the draft budget is the allocation of £90k additional resource towards streets and ground works, which is particularly important to residents across the town;

-       the way the council is run financially is second to none, and something of which we can be proud.  It is amazing that, despite what is happening in many other councils, we still have growth.  Additional resource for the planning team is particularly welcome and critical to the town, with several big applications expected in the next 12-24 months, which will require a huge amount of resource;

-       also particularly welcome is the capital budget allocated for noise monitoring equipment, which will enable the council to investigate the many complaints it receives more fully; the enhancement of play areas, Pittville Park being one of the best in the county and emulated elsewhere; investment in CCTV, in light of young people’s real fear of being out in the town at night; and money still being available for the development of the Sandford Park toilets building – hopefully the community will decide what it wants here in the coming year;

-       special thanks must go to officers for No Child Left Behind, which has so far helped seven thousand children and many families in real difficulty, in the absence of aid from the government or county.  Tracy Brown, Kelly Patterson and Helen Down have done a huge amount of work, and thanks too to all the local organisations – including IT Schools Africa, Caring for Communities and People (CCP), food networks and the various groups who help with housing, school uniforms, shoes, materials  and IT equipment. Thanks must go to the Cabinet Member for Major Development and Housing Delivery for the original idea for NCLB, and the Cabinet Member for Communities and Safety for taking it forward.  The town should be very proud, and over the next four years will show others what to do and how it can be done.

The Cabinet Member for Major Development and Housing Delivery, seconding the budget proposals, thanked the Cabinet Member for Finance and Assets, and having previously been in her shoes, said it is excellent to see growth with budget initiatives from previous years coming to fruition now. He reiterated what colleagues have said about the many great things in the budget, saying that this is inevitably a political budget based on political choices.  He is always amazed at the extent to which the collective groups of finance officers and Members are able to find ways, means and solutions to mitigate for the incompetence and failure of others.  The budget underpins many great things in Cheltenham – its economy, parks and gardens, new homes, and Golden Valley investments – but for him the greatest of all is No Child Left Behind which does so much to address the divide in communities. 

Summing up

In summing up, the Cabinet Member for Finance and Assets thanked Members for their comments, and agreed that CBC’s financial strategy is second to none; she  considers the finance team to be the best in the country and thanked them for all their work.  She agreed that a lot of the county’s criticism of the budget is unfair, and that it is not a box-ticking exercise but a brass tacks review of everything CBC does, spends and invests.

She thanked the Cabinet Member for Major Development and Housing Delivery for seconding the budget, and for all his advice and support, and the Green Party for their generous comments.  She said she too was proud of CBC’s investment in apprenticeships and the great opportunities these offer, and confirmed that the council’s exposure to oil and gas investment would continue to fall by allowing current investments to run their course without adding any further investments.  She added that she would be happy to discuss car parking charges, adding that the council plans to invest in more EV charging points in car parks, despite current setbacks, to continue to make Cheltenham a more attractive place to live, work and visit. 

She ended by thanking everyone for their input:  the public, whose comments contributed to making the budget what it is; Cabinet colleagues for accommodating tough decisions to make the budget and investments for the next few years stack up; and the Leader and Cabinet Member for Major Development and Housing Delivery for their trust and support, and for being a source of good advice and practical common sense.    

RESOLVED THAT: 

1.    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 is approved;

2.    the budget assessment by the Section 151 Officer at Appendix 2 is considered in agreeing the following recommendations;

3.    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, are approved;

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

5.    the revenue growth items totalling £392,647 at Appendix 5 are approved;

6.    the capital programme at Appendix 6 is approved;

7.    the use of reserves and general balances is approved and  the projected level of reserves, as detailed at Appendix 7, is noted;

8.    the programmed maintenance programme at Appendix 8 is approved;

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

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

11.that the Council position in relation to the Gloucestershire business rates pool for 2025/26 is noted;

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

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

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

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

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

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

17. the delivery of the Mobility Hub as a single-phase construction is approved, and  the Council’s commitment under the Development Funding Agreement to facilitate this change is increased;

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

19. despite an increased funding commitment under the Development Funding Agreement,  it is noted that 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. authority is delegated 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.

For:  Allen, Andrews, Atherstone, Baker, Barnes, Barrel, Boyes, Chandler, Chelin, Clucas, Collins, Davies, Day, Garcia Clamp, Harvey, Hay, Holliday, Horwood, Jeffries, Joy, Lewis, Lynch, Mutton, Oliver, Orme, Pemberton, Pineger, Sankey, Smith, Steinhardt, Tailford, Tooke, Williams

Against:  None

Abstentions:  None