Agenda item

This report sets out the Draft Capital and Revenue Budgets for 2024/25. In accordance with the Constitution, Cabinet is required to develop ‘initial budget proposals’ approximately three months before finalising the budget and setting Council Tax levels at the end of February 2024. The Draft Budget is based on the principles set out in the Medium Term Financial Outlook 2023-2028 (MTFO) considered by the Cabinet on 26 September 2023. 

(Agenda items 6, 7 and 8 were discussed together.)

Discussion:

Members discussed the draft capital and revenue budgets 2024/25 and also the second round of the capital and revenue budget monitoring process for 2023/24.

In response to a query about the impact of £36m of cuts on communities, the Chief Finance Officer advised that this figure represented the draft budget projected gap. Budget gaps had been closed in previous years but there would be difficult choices to make this year. The Council was lobbying the government for more funding and also a fairer distribution for the sector, given Medway was one of the twenty lowest funded councils per head of population in the country.

With regard to how the impact on residents of savings or increases in council tax were monitored, the Chief Finance Officer advised services would produce equality impact assessments to accompany any budget proposals. The increase in council tax was expected to be just under 5% and details of what increase in bills this represented could be provided.

Officers were asked for their thoughts on the recent immigration measures introduced by the Government on the Council and its partners in delivering social care. The Director of People and Deputy Chief Executive advised it was too early to say but the new measures were likely to impact on different occupations, particularly care staff.

Decision:

a)    The Committee noted that Cabinet had instructed officers to continue to work with Portfolio Holders in formulating robust proposals to balance the budget for 2024/25.

b)    The Committee noted the proposals outlined in the Draft Capital and Revenue Budgets in so far as they relate to the services within the remit of the Committee and agreed to forward their comments to the Business Support and Digital Overview and Scrutiny Committee in January.

c)    The Committee noted that the Cabinet had agreed to recommend to Full Council that in February 2024 when setting the Council Tax, the following changes are applied to Council Tax premia in line with the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018, as set out in paragraph 8.18 of the report:

·            the 100% premium for long-term empty properties may be brought forward so that it can commence after being empty for one year rather than two with effect from 1 April 2024; and

·            a 100% premium may be charged for properties that are unoccupied but furnished (known as second homes) with effect from 1 April 2025.

d)    The Committee agreed to note that the Cabinet had agreed to recommend to Full Council that in February 2024 when setting the Council Tax, the following changes are applied to the Council Tax discretionary discounts, as set out in paragraph 8.18 of the report:

·            reduce the discount in respect of class C to 0% from the day on which a property becomes vacant, and

·            reduce the discount in respect of class D to 0%.

e)    The Committee agreed to note the results of the second round of revenue budget monitoring for 2023/24 and that the Cabinet had instructed the Corporate Management Team to implement urgent actions to bring expenditure back within the budget agreed by Full Council.

f)      The Committee agreed to note the results of the second round of capital budget monitoring for 2023/24

g)    The Committee agreed to request details, at an appropriate time, of how the recent immigration measures introduced by the Government would impact on the Council and its partners.