Issue - meetings

Section 25 Report

Meeting: 19/02/2024 - Overview and Scrutiny Committee (Item 100)

100 Section 25 Report pdf icon PDF 124 KB

To consider the attached report of the Strategic Director (Finance and Housing).

Minutes:

The Strategic Director (Finance and Housing) presented the Section 25 report.

 

Members were advised that the Local Government Act 2003 (Section 25) required that the Section 151 (s151) Officer (who was the Strategic Director (Finance and Housing)) make a report to councillors on the robustness of the estimates made for the purposes of the budget calculations, the precept for the Council’s council tax and the adequacy of the proposed financial reserves. Members were required to give regard to these when considering the annual budget and precept.

 

Members were advised that there was no prescribed format for a Section 25 report.

 

The Strategic Director (Finance and Housing) advised that in his opinion as the s151 Officer, the Council’s budget has been prepared on a rigorous and robust basis and the Council’s reserves are sufficient for its immediate needs.

 

However, it is also his opinion as the s151 officer that there were two significant factors that could undermine the budget over the next year or two because of the actions of the Department for Environment Food and Rural Affairs (DEFRA) and the Department for Levelling Up, Housing and Communities (DLUHC). As a consequence, the Council was faced with the choice of either maintaining border controls at its own expense to protect UK farming and the food chain or follow the logic of DEFRA’s withdrawal of Dover Port Health Authority funding and cease the already too limited controls at the border and expose the UK to the high risk of African Swine Fever and other Products of Animal Origin (POAO) risks.

 

If the Council maintained border controls at its own expense it would massively deplete its reserves and significantly increase the risk of the chief finance officer being required to make a report pursuant to s.114 of the Local Government Finance Act 1988 in 2025/26.

 

Members were advised that this would need to be taken into consideration when scrutinising the Budget 2024/25 and Medium-Term Financial Plan 2024/25 – 2027/28.

 

It was proposed by Councillor C A Vinson, duly seconded by Councillor M Bates, that due to the overlap between this item and the Budget 2024/25 and Medium-Term Financial Plan 2024/25 – 2027/28 both items be taken en bloc.

 

On being put to the vote it was

 

RESOLVED:       That the Section 25 Report and the Budget 2024/25 and Medium-Term Financial Plan 2024/25 – 2027/28 be taken en bloc.

 

Members discussed the following points:

·         Whether there were any cuts to services as a result of this for 2024/25. In response they were advised there were not.

·         Whether there was any further update from DEFRA on the funding issue. In response it was stated that the Council had outstanding letters to DEFRA that it had not received a response about. The Environment, Food and Rural Affairs Committee (EFRA) in Parliament was also waiting on a response from DEFRA. The Council was urging DEFRA to engage on this matter as DEFRA had stopped responding to communications from the council.

·         The accuracy of DEFRA data as they continued  ...  view the full minutes text for item 100


Meeting: 05/02/2024 - Cabinet (Item 74)

74 Section 25 Report pdf icon PDF 124 KB

To consider the report of the Section 151 Officer (to follow).

 

Responsibility: Portfolio Holder for Finance, Governance, Climate Change and Environment.

Minutes:

It was agreed that the report be noted and taken into account when considering the Budget 2024/25 and Medium-Term Financial Plan 2024/25-2027/28.