Agenda item

(A report by Christine Marshall, Deputy Chief Executive – Corporate Development (S151))

(Revised Appendix 1 attached)

The Deputy Chief Executive – Corporate Development (S151) presented the budget overview 2025/26 - 2029/30 report which sought consideration of the Draft budget and Medium Term Financial Strategy for the period 2025/26 – 2029/30, with a particular focus around budget risks. Members noted that following their scrutinising of the report any feedback would be submitted within the Annual Budget report to Cabinet on 19th February 2025 and Full Council on 3rd March 2025.

The Deputy Chief Executive – Corporate Development (S151) gave a presentation, highlighting the following areas:

·       Local Government Finance Policy Statement

·       Grant Settlement 2025/26

·       Collection Fund

·       Budget Pressures and Future Risks

·       Capital Programme 2025/26 – 2029/30

·       Capital Bids and Financing 2025/26 – 2029/30

·       Treasury Management

·       Reserves

·       Efficiencies Requirement

·       Section 25 Statement

·       Future Matters Looking Forward

·       Risk Review

The Chairman reviewed the risk table and asked for an explanation of how the high and medium scores were determined. The Deputy Chief Executive – Corporate Development (S151) explained that regarding 'likelihood,' it was considered whether the risk was present in the system and if it could eventually emerge. In terms of 'impact,' the financial consequences for the authority were assessed. Given Boston's modest-sized budget, it is more susceptible to fluctuations compared to a larger authority. The Chairman queried whether there was any movement on being able to reduce the actions. The Deputy Chief Executive – Corporate Development (S151) advised that she would be reviewing all of the actions and updating them once the likelihood and impact had been reviewed.

Councillor Richard Austin BME mentioned the Government’s Unitary Authority proposals and questioned whether the reserves were adequate to cover the associated risks. The Deputy Chief Executive – Corporate Development (S151) Officer responded that the Council was in a reasonable position but reliant on receiving IDB funding from the Government.

Councillor Mike Gilbert referred to page 196 of the report and asked if BTAC should be included as a precepting authority. The Deputy Chief Executive – Corporate Development (S151) explained that it was included in Boston Borough as a special expense area, embedded within the Council Tax requirements. Councillor Gilbert also inquired why the New Homes Bonus (NHB) was identified as a high-impact risk. The Deputy Chief Executive – Corporate Development (S151) stated that the Government was conducting a comprehensive review of the NHB system concerning the funding methodology.

Councillor Chris Mountain expressed concerns about the IDBs and the risk of not receiving any funding, which would necessitate the Council using its reserves. He asked how long the Council’s reserves would last in such a scenario. The Deputy Chief Executive – Corporate Development (S151) indicated that it depended on the Government’s final settlement and allocation to Boston.

Councillor David Middleton asked whether the Government would encourage Councils to spend their reserves. The Deputy Chief Executive – Corporate Development (S151) could not comment on the new Government’s direction but confirmed that not being able to balance and having reserves could put an organisation in a challenging position. It was noted that across the three partnership authorities, the increase since 2021/22 was £4 million, necessitating funding to support that levy.

Co-opted Independent Member, Mr Gideon Hall, referred to page 194 of the report and questioned the changes regarding Band D properties. The Deputy Chief Executive – Corporate Development (S151) explained that it was due to the new Council Tax Support Scheme. Mr Hall also mentioned page 198 and the increase in parking income. The Deputy Chief Executive – Corporate Development (S151) noted that new parking machines had recently been installed, improving income, and a retail price index uplift had also been applied. Members observed that some other income lines, such as planning fees, building control fees, and land charges, had been affected by the economic environment.

The recommendation was moved by Councillor Anton Dani and seconded by Councillor Paul Gleeson.

RESOLVED:

That the report be noted and that any feedback be provided to Cabinet on 19^th February 2025 and Full Council on 3^rd March 2025 as part of the Annual Budget report.