Agenda item

To consider a report of the Cabinet Member for Finance & Capital Strategy.

The Cabinet Member for Finance and Capital Strategy presented the report setting out the proposals for Dorset Council’s 2025/26 revenue and Capital budgets including a summary of the Medium-Term Financial Plan (MTFP).

The report also included the Capital Strategy and the Treasury Management Strategy for approval.

In setting the budget the Council was facing rising costs in service delivery of £85m, which had been met through identifying £44.6m of savings, efficiencies, grants and income and £40.5m of increased funding, mostly through changes in council tax. In summing up his presentation the Cabinet Member for Finance and Capital Strategy indicated that the council continued to experience significant financial pressures and cabinet members would continue to lobby for fair funding for Dorset.

Non-Cabinet members asked several questions around parking charges and the Cabinet Member for Place Services confirmed that a further car parking review would be taking place within the next 12 months. Responding to questions regarding council housing stock, the Cabinet Member for Health and Housing advised that Cllr O’Leary had received an open invitation to attend the Housing Working Group, and a detailed report on “New models of housing delivery” would be presented to Cabinet and Full Council in the Spring.

In respect of a question relating to core assumptions, the Executive Director, Corporate Development highlighted some of the key assumptions and best estimates made against current information, as set out in 11. 2 of the report and he confirmed that a contingency fund of £13m was set aside to take account of these variables. In respect of the general grant fund, members were informed that this was the first time there was a budget line for the “Cost of Living” aimed to support the voluntary sector’s preventative work and a report on progress would come forward to a scrutiny committee in the near future.

The Cabinet Member for Finance and Capital Strategy proposed the recommendation as set out in the report, with the additional addendum of appendix 8(b) to replace the original appendix. This was seconded by Cllr N Ireland

Recommendation to Full Council

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

(b)           That the increase in general Council Tax of 2.9953% and 1.9969% in the Social Care Precept, providing a Band D Council Tax figure for Dorset Council of £2,101.05; an overall increase of 4.9921%, be agreed

(c)           That the Council Tax base of 160,793 Band D equivalents (186,917 households in total) agreed by the S151 Officer earlier in this budget setting process, be noted.

(d)           That the continuation of the unchanged scheme of Local Council Tax Support, and the revised income tables following the Department for Work and Pensions (DWP) uplift of benefits by 1.7%, be noted.

(e)           That the Capital Strategy set out in Appendix 3 and the changes to the programme contained within the appendix, be approved.

(f)             That the Treasury Management Strategy 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, the report be noted.

(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, as set out in Appendix 6, be agreed.

(j)             That the recommendations 1 – 5 from 4 December 2024 Harbour Advisory Committee meeting regarding fees and charges, budget and asset management plans, as set out at Appendix 7, be agreed.

(k)           That a transfer of £5.1m reserves to a ring-fenced reserve to support the Dedicated Schools Grant Safety Value program as reported in section 13.42, be approved.