Agenda item

To consider the report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

The Portfolio Holder for Finance, Commercial and Capital Strategy presented the Budget Strategy and medium-term financial plan (MTFP) for recommendation to Council.

 

The Portfolio Holder acknowledged that there had been a significant consultation process involving all members of the council, across all political parties. The process took the form of budget presentations, task and finish groups and detailed consideration by both scrutiny committees. Their feedback was included within the budget report to Cabinet at Appendix 6.

 

Members were advised that the proposed increase in council tax was 2.9985% in addition the social care precept would be set at 1.9975% to ensure the appropriate funding of social care. Therefore, the overall increase in council tax would be 4.996%.

 

The Portfolio Holder reported that, throughout the budget setting process, the level of savings associated with “Our Future Council” had been a concern for some members. With the additional funding that had recently been announced by central government, the Portfolio Holder intended to amend the budget proposals so that the “Our Future Council” saving target for next year be re-profiled from 12 million to 8 million pounds. The “Our Future Council” programme would remain under continued review to ensure that its savings target could be met.

 

The recommendations were seconded by Cllr S Flower.

 

In response to a question regarding the rise in council tax and the financial burden on those who were the most vulnerable in the community, the Portfolio Holder confirmed that Cabinet had recently approved the new “Local Council Tax Reduction Policy” meaning that subject to circumstances, vulnerable residents could receive up to 100 per cent support towards their council tax.  Individuals could also seek advice from the Citizens Advice Bureau.

 

The Chairman invited the Chairman of Place and Resources Scrutiny Committee and other non-executive members to ask questions and make comments on the report.

 

Recommendation to Full Council

 

(a)  That the revenue budget summarised in Appendix 1, be agreed.

 

(b)    That the increase in general Council Tax of 2.9985% and 1.9975% in the Social Care Precept, providing a Band D Council Tax figure for Dorset Council of £2,001.15; an overall increase of 4.996%, be agreed.

 

(c)    That the Council Tax base agreed by the Section 151 Officer earlier in this budget setting process as shown in appendix 2, be agreed.

 

(d)    That the change to the current scheme of Local Council Tax Support as set out in the report to Cabinet of 30 January, reflecting the decision previously made at full Council on 14 December 2023, be agreed.

 

(e)    That the Capital Strategy, set out at Appendix 3, and the 2024/25 – 2027/28 programme in section 23 of the report to Cabinet of 30 January 2024 be agreed.

 

(f)     That the treasury management strategy as set out in Appendix 4 be agreed.

 

(g)    That the assumptions used to develop the Budget Strategy and Medium-Term Financial Plan (MTFP), as set out throughout this report be agreed.

 

(h)    That the recommended balances on earmarked reserves and on general funds, including the minimum level of the general fund, be agreed.

 

(i)      That the responses to the recommendations and comments made as part of the budget scrutiny process, be agreed (Appendix 6).

 

(j)      That the recommendations 1-5 from the 22 November 2023 Harbours Advisory Committee meeting regarding fees and charges, budgets, and asset management plans, as set out at Appendix 7, be agreed.

 

(k)    That the flexible use of additional £1.5m of capital receipts for the purposes of transforming the Council’s housing services, as set out at Appendix 8, be agreed. 

 

(l)      That the Fees and Charges for the Council for 2024/25, at Appendix 9, be agreed.

 

Reason for the recommendation

The Council was required to set a balanced revenue budget, and to approve a level of Council Tax as an integral part of this process.  A balanced budget was essentially one where all expenditure was funded by income without unsustainable use of one-off or short-term sources of finance.