Agenda item

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Report of Chief Officer Resources (report published on 15 January 2024)

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Chief Finance Officer to provide an update on the Council’s budget strategy for 2024/25 and financial outlook up to 2028/29. Specifically, the report considered the budget and Council Tax proposals for 2024/25.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

It is essential that the Council Tax rate is set in line with the Council Tax billing timetable.

Any delay would put the Council at risk of not being able to collect the tax which would

 have serious cash flow implications.

Regarding the budget strategy, Cabinet may approve the proposals as set out, or ask

 for changes to be made to the suggested approach. The overriding aim of any budget

setting process is to approve a balanced budget by statutory deadlines, allocating

resources to help ensure delivery of the Council’s corporate priorities and service

outcomes. The proposed approach is in line with that broad aim and any changes

 that Cabinet puts forward should also be framed in that context.

In terms of the actual budget position, this report puts forward a balanced budget. If

Cabinet agrees the budget, then it will form their proposal to Budget and Performance

Panel on 18 January 2024 and subject to public consultation 31^st January. The feedback

from these meetings will be considered by Cabinet and incorporated into a final

budget proposal which will be presented at the Cabinet meeting on 06 February 2024

and recommended to Council on 28 February 2024.

The current budget proposal produces a balanced budget through utilisation of the Councils reserves. Cabinet and Officers must continue to work ahead of Cabinet’s 06 February 2024 meeting to identify further opportunities for savings, efficiencies, and income generation to further reduce the use of reserves.

Whilst the longer-term financial forecasts contain numerous estimates and assumptions, which will change over time, the forecasts clearly highlight potential annual and cumulative budget deficits over the next 5 years and the position the Council faces. Although this position is not unique to this Council, and is reflected nationally across many public sector bodies, the gaps identified for 2025/26 and beyond are of a level that both Members and Officers need to recognise the size of the challenge ahead and manage the transitional change to the way that the Council delivers both its statutory and non-statutory services across the district .

Councillor Hamilton-Cox proposed, seconded by Councillor Wood:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That Cabinet make recommendations to Council regarding the Lancaster City Council element of the Council Tax as set out in paragraph 3.3 (option one) of the report which is a 2.99% increase to the Band D Council Tax (from £249.18 to £256.63).

(2)      That Cabinet makes recommendations regarding its initial budget proposals as set out in section 5 and Appendix A of the report.

(3)        That the recommendations and proposals in the report be referred to Council on 24 January for initial consideration as well as being presented for scrutiny by Budget and Performance Panel on 18 January, in order that any feedback can be provided to Cabinet at its 06 February meeting.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

The budget framework in general sets out a financial plan for achieving the Council’s corporate priorities and outcomes which incorporate the above cross cutting themes. Equalities impact assessments are undertaken for the relevant activities which are reflected in the budget.

The decision enables the proposals to be considered by the Budget and Performance Panel and at January Council allowing Cabinet to make further recommendations back to Council to complete the budget setting process for 2024/25.