Issue - meetings

To consider the report of the Head of Finance and Investment.

The Head of Finance and Investment presented the Draft Budget 2025/26 and the Medium-Term Financial Plan 2025/26 – 2028/29.

The report set out the following summary:

(a)     The General Fund budget for 2025/26 forecast a deficit of c.£432,000, funded from earmarked reserves, reflecting the pressures of homelessness and key income streams – pressures also faced by many councils nationally.

(b)     Proposed DDC Council Tax increase of £6.39 (2.98%) per annum (12p per week) for a Band D property, maintaining the lowest Council Tax in East Kent.

(c)      There were no major reductions in services proposed within the budget.

(d)     Housing rents would increase by 2.7%. The typical weekly rent on a 3-bedroom house would be £117.38 and was much lower than the private sector equivalent.

(e)     The Housing Revenue Account forecast a surplus of £520k.

(f)       The Capital Programme would be fully funded but resources for future projects were limited.

Members welcomed that the forecast deficit was less than £500,000.

The following points were raised in the discussion:

·         To enquire if the Council would receive funding from Government in respect of the work required for local government devolution and reorganisation. It was stated that it was not known at this time.

·         To raise the issue of the Council’s current debt and the impact of any future borrowing to fund the new Deal Leisure Centre. Members were advised that it was expected that the borrowing costs for the new Deal Leisure Centre would be cost neutral due to operator payments. The borrowing costs were based on viability assessments.

·         To discuss the Housing Revenue Account and to welcome the decrease in rent arrears.

·         The impact of the pressures relating to homelessness costs on the budget.

It was moved by Councillor S H Beer, duly seconded by Councillor M J Nee, and

RESOLVED: That the budget be noted.

To consider the report of the Head of Finance and Investment (to follow).

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

It was agreed:

(a)   That the draft General Fund Revenue Budget, the Project Programmes, the Housing Revenue Account budget, and the content of the Medium-Term Financial Plan (MTFP), as proposed in Appendix 1 of the report, be approved.

(b)   That it be noted that the calculation of the 2025/26 Business Rates impact on the General Fund funding is still being finalised, and that any changes will be reflected in adjustments to the use of the smoothing reserve in the final budget.

(c)   That it be noted that the remaining annexes, including the Council Tax Resolution and Treasury Management, Investment and Capital Strategies, will be added to the MTFP and that other adjustments may be made before being presented to Cabinet and Council in March.