Agenda item

This report sets out Cabinet’s proposals for the Capital and Revenue Budget for 2024/25. In accordance with the Constitution, Council is required to approve the Capital and Revenue Budget, rent increases and Council Tax for 2024/25.

Background:

 

This report set out Cabinet’s proposals for the Capital and Revenue Budget for 2024/25. In accordance with the Constitution, Council was required to approve the Capital and Revenue Budget, rent increases and Council Tax for 2024/25. 

 

The Cabinet had considered initial budget proposals on 21 November 2023. On 5 February 2024 the Government had published a Local Government Finance Update via a written statement which had included the publication of the Final Local Government Finance Settlement 2024 to 2025.

 

The majority of allocations for Medway for 2024/25 had been confirmed as per those in the Provisional Settlement, so the extent to which the announcements impacted Medway’s Budget was minimal. This had been set out in an Addendum Report to the Proposed Budget presented to Cabinet on 13 February 2024.

 

In accordance with the budget and policy framework rules within the Constitution, the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 13 February 2024.

 

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 11 to the report, summarised the results of Diversity Impact Assessments. These had been completed for each of the services affected by the proposed budget changes.

 

The Leader informed the Council that a Ministerial statement had been received that confirmed that Medway Council’s request for Exceptional Financial Support had been accepted in principle. This would enable the Council to borrow for revenue purposes and provide the flexibility to use existing grants to support Medway’s Improvement Programme. The Leader said that this support would enable the Council to move to a position of financial sustainability.

 

The Leader of the Council, Councillor Maple, supported by the Deputy Leader, Councillor Murray, proposed the recommendations set out in the report, subject to the following alteration:

 

Recommendations 1.1.1, 1.1.2 and 1.1.4 to 1.1.16 as set out on pages 213-215 of the Agenda.

 

Revised recommendation 1.1.3 as follows [change is shown as a bold underline]:

 

“Approve the additions to the capital programme set out in Table 12 of the report, including the addition of £22million funded through a combination of borrowing, capital receipts and revenue savings to deliver a programme of essential repairs and improvements to Gun Wharf.”

 

Note: Whilst the Council recommendation correctly references “…the addition of £20million funded through borrowing…” the detailed figures within the exempt appendix to the Cabinet report on 13 February 2024, reflected a £22million scheme netted off against £1.8million of capital receipts and £200,000 of revenue savings. It was this £22million of expenditure for which Council approval was sought.

 

Councillor Perfect, supported by Councillor Lawrence, proposed the following amendment:

 

Amendment to recommendation 1.1.2:

 

Add the following to the end of the recommendation:

 

“…subject to the following amendments to Appendices 2 – Regeneration, Culture and Environment Directorate pressures and savings and 3 – Business Support Department pressures and savings:

 

Remove:

 

·       Sports centre charges review: includes reduction in concessionary membership subsidies and free swimming (agreed saving of £218,000).

 

·       HIF impact - reduction in projected impact as costs met within existing RCE Directorate budgets (saving of £184,000).

 

·       Communications – undeliverable income target (pressure of £100,000).

 

Replace with:

 

·       Sports centre charges review – reduction/change in concessionary memberships (agreed saving of £88,000).

 

·       HIF impact - reduction in projected impact as costs met within existing RCE Directorate budgets (saving of £214,000).”

 

Amended recommendation reads:

 

“1.1.2 - Approve the general fund gross, income and net revenue estimates as summarised in Table 1 of this report in the sum of £438.569million subject to the following amendments to Appendices 2 - Regeneration, Culture and Environment Directorate pressures and savings and 3 – Business Support Department pressures and savings:

 

Remove:

 

·       Sports centre charges review: includes reduction in concessionary membership subsidies and free swimming (agreed saving of £218,000)

 

·       HIF impact - reduction in projected impact as costs met within existing RCE Directorate budgets (saving of £184,000)

 

·       Communications – undeliverable income target (pressure of £100,000)

 

Replace with:

·       Sports centre charges review – reduction/change in concessionary memberships (agreed saving of £88,000).

 

·       HIF impact - reduction in projected impact as costs met within existing RCE Directorate budgets (saving of £214,000).”

 

In accordance with Rule 12.5 of the Council Rules, a recorded vote on the

amended proposal was taken.

 

For – Councillors Anang, Barrett, Brake, Clarke, Crozer, Doe, Etheridge, Fearn, Gilbourne, Gulvin, Hackwell, Hyne, Joy, Kemp, Lawrence, Pearce, Perfect, Sands, Tejan, Wildey and Williams. (21)

Against – Councillors Animashaun, Bowen, Browne, Campbell, Cook, Coombs, Curry, Edwards, Field, Gurung, Hamandishe, Hamilton, Howcroft-Scott, Jones, Khan, Mahil, Mandaracas, Maple, Murray, Myton, Nestorov, Osborne, Paterson, Peake, Louwella Prenter, Mark Prenter, Price, Stamp, Mrs Turpin and Van Dyke. (30)

 

Abstain – None.

 

Note: Councillor McDonald was not present for this item and Councillor Spalding did not take part in the recorded vote.

 

The amendment was lost.

 

In accordance with Rule 12.5 of the Council Rules, a recorded vote on the Leader of the Council’s proposal was taken.

 

For: Councillors Animashaun, Bowen, Browne, Campbell, Cook, Coombs, Crozer, Curry, Edwards, Field, Gurung, Hamandishe, Hamilton, Howcroft-Scott, Jones, Khan, Mahil, Mandaracas, Maple, Murray, Myton, Nestorov, Osborne, Paterson, Peake, Louwella Prenter, Mark Prenter, Price, Sands, Stamp and Van Dyke. (31)

Against: Councillors Anang, Barrett, Brake, Clarke, Doe, Etheridge, Fearn, Gilbourne, Gulvin, Hackwell, Hyne, Joy, Kemp, Lawrence, Pearce, Perfect, Tejan, Mrs Turpin, Wildey and Williams. (20)

Abstain: None.

Note: Councillor McDonald was not present for this item and Councillor Spalding did not take part in the recorded vote.

 

On being put to the vote, the proposal was agreed.

 

Decision:

 

The Council:

a)    Approved the recommendations of the Employment Matters Committee on 30 January 2024 as set out in Section 9 of this report:

 

1)      a Cost of Living Adjustment (COLA) of 5% be allocated for the 2024/25 pay award for all on MedPay Terms and conditions.

 

2)      the Range 3 pay band be lifted by £1,052 (excluding the 5% COLA increase).

 

3)      the Range 2 pay band be lifted by £547 (excluding the 5% COLA increase).

 

4)      a gap of £525 be introduced between the Range 1 and 2 pay bands.

 

5)      sleep in payments to be increased by 3.88%.

 

6)      the Annual Leave entitlement be increased to 30 days per annum pro rota for R1-R3, after 5 years’ continuous service.

 

7)      the current PDR levels and the associated performance related award attributed to them (i.e. levels 1A and 1B) be removed and instead an additional day’s annual leave awarded to everyone in 2024/25 and 2025/26 on MedPay terms and conditions who is not subject to formal performance management measures.

 

8)      a long service award of an additional day’s leave at 10 and 15 years of service at all grades be introduced.

 

b)    Approved the general fund gross, income and net revenue estimates as summarised in Table 1 of the report in the sum of £438.569million.

 

c)    Approved the additions to the capital programme set out in Table 12 of the report, including the addition of £22million funded through borrowing to deliver a programme of essential repairs and improvements to Gun Wharf.

 

d)    Noted the Kent Police and Crime Commissioner’s precept requirement, as set out in Section 15.2 of the report.

 

e)    Noted the Kent Fire and Rescue Service precept requirement, as set out in Section 15.3 of the report.

 

f)      Noted the Parish Council precept requirements of £691,298 as detailed in Section 15.4 of the report.

 

g)    Approved the basic rate of Council Tax at Band D for 2024/25, before adding the Police, Fire and Parish precepts, at £1,754.69, an increase of 4.994% as set out in Section 16.1 of the report.

 

h)    Approved the following changes to Council Tax premia in line with the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018:

 

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

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

i)      Approved the following changes to the Council Tax discretionary discounts:

 

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

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

j)      Adopted the formal resolution for the Council Tax requirement and schedule of Council Tax charges for 2024/25, as set out in Appendix 6A to the report.

 

k)    Approved the Retail, Hospitality and Leisure Relief scheme policy in respect of Business Rates for 2024/25, as set out at Appendix 10 to the report.

 

l)      Approved the Flexible Use of Capital Receipts Strategy set out at Appendix 8 to the report.

 

m)  Approved fees and charges, as recommended by Cabinet as part of the budget proposals, in the booklet 'Medway Council - Fees and Charges April 2024', as set out in Appendix 7 to the report.

 

n)    Approved the recommendations set out at Section 14 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

 

1)      The proposed increase in rents as set out at Appendices 4A and 4B;

2)      The proposed service charges as set out at Appendix 4C;

3)      The budget proposed as summarised at Appendix 4D;

4)      The 30 year business plan projections at Appendix 4E.

o)    Approved the declassification of the following amounts currently held in earmarked reserves and transfer them to general reserves:

 

1)      £4.00million held in the South Medway Development Reserve,

2)      £1.00million held in the Transformation Reserve, and

3)      £727,000 held in the Mosaic Forms Reserve.

p)    Noted the findings of the Diversity Impact Assessment as set out in Appendix 11 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.