Agenda item

This report sets out Cabinet’s proposals for the Capital and Revenue budget for 2025 / 2026. Council is required to approve the Capital and Revenue Budget, rent increases and the Council Tax for 2025/26.

Background:

 

The Mayor advised that Members of the Council who had two or more months of council tax arrears would not be permitted to vote on the Council budget.

 

This report set out Cabinet’s proposals for the Capital and Revenue Budget for 2025/26. In accordance with the Constitution, Council was required to approve the Capital and Revenue Budget, rent increases and Council Tax for 2025/26. 

 

The Cabinet had considered initial budget proposals on 19 November 2024. On 18 December 2024 the Government published the Provisional Local Government Finance Settlement. Details of the funding announcements and their impact on Medway Council’s budget were set out in a report considered by the Cabinet on 14 January 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 11 February 2025.

 

It was noted that the Cabinet had determined not to support the recommendation made by the Employment Matters Committee on 29 January 2025 that the offer of a leisure membership discount be made to Medway Councillors.

 

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 11 February 2025.

 

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 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:

 

Revised recommendation 1.2 as follows [change is shown as a bold underline]

 

“Approve the general fund gross, income and net revenue estimates as summarised in Table 1 of this report in the revised sum of £496.441million, including the following addition to be funded from reserves, (noting that an announcement on Government funding for this purpose is currently awaited):

 

£50,000 – VE and VJ celebrations.”

 

Revised recommendation 1.3 as follows:

 

“Approve the recommendations of the Employment Matters Committee on 29 January 2025 as set out in Section 7 of this report:

 

a)  a 5% increase for all staff on MedPay terms and conditions, which includes those on MedPay Performance, Progression Pay Scheme as well as those who are on the legacy scheme.

b)  not to increase sleep-in payments.

c)   not to return to National Joint Council pay scales currently, but keep negotiations open on this matter.

d)  an additional ‘wellbeing’ day to be awarded on a colleague’s birthday to be taken on the day or close to the birthday as agreed with line management.

e)  to offer a salary sacrifice Cycle to Work scheme with a scheme partner for an initial term of two years.

f)    to implement a shared cost Additional Voluntary Contribution scheme with My Money Matters, formerly AVC Wise for an initial term of three years.

g)  to offer a 50% discount on annual single premier membership to our leisure centres annual admission membership and a 25% discount on family and joint memberships, with no monthly membership falling below £20, for Medway Council employees only to Medway Leisure Centres.

h)  to align the Children and Adults social care pay scales, for the reasons set out in Appendix 4 to the report [presented to Employment Matters Committee on 29 January 2025].

i)    to align the Joint National Committee Youth and Community Workers terms and conditions except for automatic increments, as agreed at [Employment Matters] Committee on 4 December 2024.

Please note: recommendations 1.1 and 1.4-1.14 remain as set out in pages 186-187 of the Agenda”.

 

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

 

Amendment to recommendation 1.2:

 

“Approve the general fund gross, income and net revenue estimates as summarised in Table 1 of this report in the sum of £496.441 £489.873 million, thereby achieving savings of £6.568million and reducing the requirement for Exceptional Financial Support (EFS) from £18.484million to £11.916million achieved by:

 

Savings	£
Reduce staff salary increase from 5% to 2.5%, and introduce a provision of £500,000 skills shortage allowance for hard to recruit posts	2,481,000
Nil pay rise for Chief Executive, Directors and Assistant Directors	89,000
Reduce increase in Councillors’ Allowances from 5% to 2.5% (in line with revised staff salary increase)	25,000
Reduce Medway 2.0 Programme	250,000
Staff Reduction	1,800,000
Reduction in LGR team	300,000
Delay Children’s Services aiming for Outstanding (Ofsted)	1,581,000
Annual Reduction in interest on EFS @4.50%	385,000
Total savings	6,911,000

 

New spend	£
Enhance School Holiday Clubs	100,000
Re-introduce free swimming for Under 11s after school, term time only, Monday-Friday	53,000
Free parking for 30 minutes in the following car parks: Cricketers (Rainham) Longley Road (Rainham) Littlewoods (Gillingham) Jeffery Street (Gillingham) Commercial Road (Strood)	190,000
Total new spend	343,000”

 

Amendment to recommendation 1.3:

 

“Approve the recommendations of the Employment Matters Committee on 29 January 2025 as set out in section 7 of the report subject to amending recommendation 1.3a to read:

 

a)    a 2.5% increase for all staff on MedPay terms and conditions, which includes those who are on the legacy scheme.”

 

Amended recommendation reads:

 

Amendment to recommendation 1.2:

 

“Approve the general fund gross, income and net revenue estimates as summarised in Table 1 of this report in the sum of £489.873million, thereby achieving savings of £6.568million and reducing the requirement for Exceptional Financial Support (EFS) from £18.484million to £11.916million achieved by:

 

Savings	£
Reduce staff salary increase from 5% to 2.5%, and introduce a provision of £500,000 skills shortage allowance for hard to recruit posts	2,481,000
Nil pay rise for Chief Executive, Directors and Assistant Directors	89,000
Reduce increase in Councillors’ Allowances from 5% to 2.5% (in line with revised staff salary increase)	25,000
Reduce Medway 2.0 Programme	250,000
Staff Reduction	1,800,000
Reduction in LGR team	300,000
Delay Children’s Services aiming for Outstanding (Ofsted)	1,581,000
Annual Reduction in interest on EFS @4.50%	385,000
Total savings	6,911,000

 

New spend	£
Enhance School Holiday Clubs	100,000
Re-introduce free swimming for Under 11s after school, term time only, Monday-Friday	53,000
Free parking for 30 minutes in the following car parks: Cricketers (Rainham) Longley Road (Rainham) Littlewoods (Gillingham) Jeffery Street (Gillingham) Commercial Road (Strood)	190,000
Total new spend	343,000”

 

Amendment to recommendation 1.3:

 

“Approve the recommendations of the Employment Matters Committee on 29 January 2025 as set out in section 7 of the report subject to amending recommendation 1.3a to read:

 

a)    a 2.5% increase for all staff on MedPay terms and conditions, which includes those who are on the legacy scheme.”

 

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, Doe, Etheridge, Fearn, Finch, Gilbourne, Gulvin, Hackwell, Hyne, Joy, Kemp, Lammas, Lawrence, Perfect, Spring, Tejan, Vye and Wildey. (21)

 

Against – Councillors Animashaun, Bowen, Browne, Campbell, Cook, Coombs, Crozer, Curry, Field, Gurung, Hamandishe, Hamilton, Howcroft-Scott, Hubbard, Jackson, Jones, Mahil, Mandaracas, Maple, McDonald, Murray, Myton, Nestorov, Nestorova, Paterson, Peake, Pearce, Louwella Prenter, Mark Prenter, Price, Sands, Shokar, Stamp, Mrs Turpin, Van Dyke and Williams. (36)

 

Abstain: None

 

The amendment was lost.

 

Note: Councillor Spalding did not take part in the recorded vote.

 

Councillor Pearce, supported by Councillor Mrs Turpin, proposed the following amendment:

 

Amendment to recommendation 1.2:

 

“Approve the general fund gross, income and net revenue estimates as summarised in Table 1 of this report in the sum of £496.441million subject to the following amendments:

 

Savings	£
Remove “Additional permanent resource to meet growing service demand for marketing support to help services meet objectives and income targets”	424,000
Remove “Additional resource to support devolution and local government reorganisation”	450,000
Total savings	874,000

 

New spend	£
Add free swimming for under 16s and over 60s	414,759
Add free parking at country parks	210,000
Add the reintroduction of the English and Dickens Festivals	138,490
Add additional funding for pothole repairs	55,375.50
Add additional funding for Public Rights of Way	55,375.50
Total new spend	874,000”

 

Amended recommendation reads:

 

Amendment to recommendation 1.2

 

“Approve the general fund gross, income and net revenue estimates as summarised in Table 1 of this report in the sum of £496.441million subject to the following amendments:

 

Savings	£
Remove “Additional permanent resource to meet growing service demand for marketing support to help services meet objectives and income targets”	424,000
Remove “Additional resource to support devolution and local government reorganisation”	450,000
Total savings	874,000

 

New spend	£
Add free swimming for under 16s and over 60s	414,759
Add free parking at country parks	210,000
Add the reintroduction of the English and Dickens Festivals	138,490
Add additional funding for pothole repairs	55,375.50
Add additional funding for Public Rights of Way	55,375.50
Total new spend	874,000”

 

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

 

For – Councillors Crozer, Finch, Pearce, Sands, Mrs Turpin, Vye and Williams. (7)

 

Against – Councillors Anang, Animashaun, Barrett, Bowen, Brake, Browne, Campbell, Clarke, Cook, Coombs, Curry, Doe, Etheridge, Fearn, Field, Gilbourne, Gulvin, Gurung, Hackwell, Hamindishe, Hamilton, Howcroft-Scott, Hubbard, Hyne, Jackson, Jones, Joy, Kemp, Lammas, Lawrence, Mahil, Mandaracas, Maple, McDonald, Murray, Myton, Nestorov, Nestorova, Paterson, Peake, Perfect, Louwella Prenter, Mark Prenter, Price, Shokar, Spring, Stamp, Tejan, Van Dyke and Wildey. (50)

 

Abstain: None

 

Note: Councillor Spalding did not take part in the recorded vote.

 

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, Field, Gurung, Hamandishe, Hamilton, Howcroft-Scott, Hubbard, Jackson, Jones, Mahil, Mandaracas, Maple, McDonald, Murray, Myton, Nestorov, Nestorova, Paterson, Peake, Louwella Prenter, Mark Prenter, Price,  Shokar, Stamp, and Van Dyke. (32)

 

Against – Councillors Anang, Barrett, Brake, Clarke, Doe, Etheridge, Fearn, Finch, Gilbourne, Gulvin, Hackwell, Hyne, Joy, Kemp, Lammas, Lawrence, Pearce, Perfect, Sands, Spring, Tejan, Mrs Turpin, Vye, Wildey and Williams. (25)

 

Abstain - None

 

Note: Councillor Spalding did not take part in the recorded vote.

 

On being put to the vote the proposal was agreed.

 

Decision:

 

a)    The Council approved the general fund gross, income and net revenue estimates, as summarised in Table 1 of the report in the revised sum of £496.441million, including the following addition to be funded from reserves (noting that an announcement on Government funding for this purpose was currently awaited):

 

£50,000 – VE and VJ celebrations.

 

b)    The Council approved the recommendations of the Employment Matters Committee on 29 January 2025 as set out in Section 7 of the report, subject to the agreed alteration to recommendation 1.3 g, decision no. 7 below [the effect of the alteration is that discounted Medway leisure centre membership would only be available to Council officers and not to Councillors]:

 

1)      a 5% increase for all staff on MedPay terms and conditions, which includes those on MedPay Performance, Progression Pay Scheme as well as those who are on the legacy scheme.

2)      not to increase sleep-in payments.

3)      not to return to National Joint Council pay scales currently, but keep negotiations open on this matter.

4)      an additional ‘wellbeing’ day to be awarded on a colleague’s birthday to be taken on the day or close to the birthday as agreed with line management.

5)      to offer a salary sacrifice Cycle to Work scheme with a scheme partner for an initial term of two years.

6)      to implement a shared cost Additional Voluntary Contribution scheme with My Money Matters, formerly AVC Wise for an initial term of three years.

7)      to offer a 50% discount on annual single premier membership to our leisure centres annual admission membership and a 25% discount on family and joint memberships, with no monthly membership falling below £20, for Medway Council employees only to Medway Leisure Centres.

8)      to align the Children and Adults social care pay scales, for the reasons set out in Appendix 4 to the report [presented to Employment Matters Committee on 29 January 2025].

9)      to align the Joint National Committee Youth and Community Workers terms and conditions except for automatic increments, as agreed at [Employment Matters] Committee on 4 December 2024.

c)    The Council approved the recommendations set out at Section 12 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 5A and 5B;

2)      The proposed service charges as set out at Appendix 5C;

3)      The budget proposed as summarised at Appendix 5D;

4)      The 30 year business plan projections at Appendix 5E.

d)    The Council approved the recommendations of the Cabinet on 11 February 2025 for the following additions and removals from the Capital Programme, as set out in Section 11.2 of the report, as follows:

 

1)      The addition to the Capital Programme of £43,647 of capital budget to the Hoo Dining and Changing scheme. £14,672 is to be funded from s106 developer contributions (MC/17/0962) and the remainder is to be funded from unallocated Basic Need grant.

2)      The addition to the Capital Programme of £52,950 of capital budget to be allocated to the Maritime Academy Science Block scheme, funded by borrowing in advance of s106 developer contributions (MC/21/2225) which had not yet been received.

3)      The removal from the Capital Programme of £2.4million for the Sir Joseph Williamson’s SEND scheme from the Capital Programme. The service would request a new capital addition once an alternative grammar provision had been identified.

4)      The removal from the Capital Programme of the remaining budget of £7,992 from the Building Maintenance scheme as this was now complete.

5)      The removal of the remaining budget of £100,000 from the Mobile Library scheme as this was no longer required with the addition of the Library Improvement Fund scheme to the Capital Programme.

6)      The addition of £559,000 to the Mountbatten House Purchase scheme, funded by prudential borrowing, to cover the costs of holding the building for onward sale to Medway Development Company (MDC).

e)    The Council noted the Kent Police and Crime Commissioner’s precept requirement, as set out in Section 13.2 of the report.

 

f)      The Council noted the Kent Fire and Rescue Service precept requirement, as set out in Section 13.3 of the report.

 

g)    The Council noted the Parish Council precept requirements of £740,954, detailed in Section 13.4 of the report, noting that these reflected an anticipated precept for the Parish of St Mary Hoo of £18,486.

 

h)    The Council approved the basic rate of Council Tax at Band D for 2025/26, before adding the Police, Fire and Parish precepts, at £1,842.32, an increase of 4.994%, as set out in Section 14.1 of the report.

 

i)      The Council adopted the formal Council Tax Resolution and schedule of Council Tax charges for 2024/25, as set out in Appendix 6A to the report, subject to incorporating the following amendments arising from the Full Council meeting:

Amount in paragraph 3(a), Appendix 6A becomes £641,649,954

Amount in paragraph 3(b), Appendix 6A becomes £471,230,960

 

j)      The Council approved fees and charges, as recommended by Cabinet as part of the budget proposals, in the booklet 'Medway Council - Fees and Charges 2025/26, as set out in Appendix 7 to the report.

 

K)   The Council approved the Flexible Use of Capital Receipts Strategy, set out at Appendix 8 to the report.

 

l) The Council approved the Discretionary Non-Domestic Rate Relief Policy at Appendix 10 to the report.

 

m)The Council 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.