Issue - meetings

Purpose of Report

To recommend to Executive the draft Medium-Term Financial Strategy (MTFS) for the period 2025 ? 2030; the draft budget and Council Tax proposal for 2025 - 26; and the draft Capital Strategy 2025 - 2030.

Decision

13.1   That Executive agreed, for further consultation and scrutiny:

·       The Draft Medium Term Financial Strategy 2025 ? 2030, and

·       The Draft Capital Strategy 2025 - 2030.

     Including the following specific elements:

·       A proposed Council Tax increase of 2.95% for 2025/26.

·       A proposed housing rent increase of 2.7% for 2025/26.

·       The Council’s membership of the Lincolnshire Business Rates Pool in 2025/26.

·       The Draft General Fund Revenue Forecast 2025/26 - 2029/30, as shown in Appendix 1 of the officer’s report, and the main basis on which this budget had been calculated, as set out in paragraph 4 of the report.

·       The Draft Housing Revenue Account Forecast 2025/26 - 2029/30, as shown in Appendix 2 of the officer’s report, and the main basis on which this budget had been calculated, as set out in paragraph 5 of the report.

·       The Draft General Investment Programme 2025/26 - 2029/30, as shown in Appendix 3 of the officer’s report, and the main basis on which the programme had been calculated, as set out in paragraph 6 of the report.

·       The Draft Housing Investment Programme 2025/26 - 2029/30, as shown in Appendix 4 of the officer’s report, and the main basis on which the programme had been calculated, as set out in paragraph 7 of the report.

13.2  That delegated authority be given by Executive to the Chief Finance Officer to approve the final Business Rates Base for the financial year commencing on 1 April 2025 and ending 31 March 2026 and submission of the base (via the NNDR1 return) to the Ministry of Housing, Communities and Local Government (MHCLG) by 31 January 2025, with changes to the base estimated in the Draft Medium Term Financial Strategy 2025/30 being reported to the Executive as part of the Final MTFS 2025-30 on 24 February 2025.

Alternative Options Considered and Rejected

As detailed throughout the report.

Reasons for the Decision

The refresh of the MTFS needed to be seen in the context of a high level of financial uncertainty for the Council in relation to future Government funding levels. Significant changes to future public sector departmental spending through the Spending Review 2025, the allocation of this funding to local government through reforms to the distribution methodologies, and the implementation of a Business Rates Reset, were as yet unknown but all of which had the potential; to fundamentally affect the Council’s funding trajectory and MTFS.

In addition, the announcement of the English Devolution White Paper, which set out the Government’s plans to widen and deepen devolution in England and reform local government structures, could have fundamental implications for all tiers of local government.

Furthermore, the Council continued to face cost and demand pressures, along with pressures on income streams and new statutory requirements. Inflation, pay awards, national insurance contribution increases, higher maintenance and  ...  view the full minutes text for item 75