Issue - meetings

The Deputy Chief Executive presented the Initial Budget Setting report for Members’ consideration.

In doing so, it was noted that the report set out the process which Officers planned to undertake in two-phases for 2025/26 to 2027/28. This had been the process in the previous two financial years and had resulted in quicker implementation of the budget proposals.

Members were informed that the new Chancellor of the Exchequer had issued a statement on 29^th July 2024 that had set the date of the next Budget for 30^th October 2024 and had commissioned a forecast from the Office for Budget Responsibility (OBR) for this date. This would involve a significant amount of work. It was thought that the next Local Government settlement would be for one year, however it was hoped that in future years this would be a three-year settlement providing more stability for Local Authorities.

As part of the Budget statement, it was expected that there would be further information provided regarding increases in public sector pay awards and several other areas such as winter fuel payments, adult social care caps and council tax reforms. It was expected that there would be significant changes in these areas.

The risks included in the report that were associated with the Budget setting process for 2024/25 to 2026/27 were highlighted for Members information and noted accordingly. However, Officers reported that any risks would be mitigated as much as possible.

Members noted that this was a difficult time for Local Authorities. However, this report provided a positive response for the future.

RESOLVED that

1)    The two Phase Budget Process be followed again for the 2025/26 to 2027/28 Medium Term Financial Plan.