Agenda and minutes

For information, disclosable pecuniary interests and registrable interests relate to entries that are included, or should be included,  on a councillor’s register of interests. Non-registrable interests relate to any other matters.

No disclosures were made.

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No questions had been submitted.

Attached.

Considered, a Scrutiny Plan/Timetable for the Panel’s scrutiny of the 2024/25 Draft Budgets (item 5 on the agenda filed with these minutes).

RESOLVED that the scrutiny plan/timetable be noted.

Reason

To ensure that the Panel are kept informed of timescales.

Presentation.

Councillor Seaton arrived at the meeting at 6.04pm.  She left the meeting during the discussion at 6.18pm for a short duration.

The Panel considered a presentation by the Director of Finance, Governance and Contracts detailing the financial position of the Council. 

Post meeting note: The presentation was published after the meeting as an agenda supplement.

The information given in the presentation represented current projections of the Medium-Term Financial Strategy (MTFS).  A fully updated version would be produced and it was planned that this would be adopted by Council at the end of February 2024.

Key points of discussion:

(i)              Council tax was capped (currently 3% increase assumed for 2024/25) and limits set each year as part of the financial settlement.  Confirmed it was a stable source of income.

(ii)             The MTFS assumed there would be a reduction in grant funding going forward, but updated projections assumed a small real terms increase, a more optimistic position than previously presented.

(iii)           Considered positive that the structure of the financial settlement for 2024/25 would be the same as for 2023/24.

(iv)           In terms of grant funding, the business rates retention figures were produced from a detailed model.  Important to note however that these were projections at this stage and subject to change following government review.

(v)             The Leicester and Leicestershire Enterprise Partnership (LLEP) would cease in April 2024.  The Council’s share of the distribution of funds from the Business Rates Pool could be in excess of £1 million albeit subject to minor restrictions on spending.

(vi)           Revenues and Benefits – exempt report to Cabinet in September 2023 indicated ongoing savings of £0.3 to £0.4 million per annum. Pensions were included as direct savings.

(vii)          Annual Housing Benefit subsidy loss estimated at £0.8 million to 30th June 2023.  Rent increases at the Carpenters Arms could mean a loss of up to £1.4 million annually going forward.  Ongoing work with the charity to challenge rental costs and mitigate risks.

(viii)        Confirmed there was neither profit nor loss being made with regard to the council’s leisure services and that leisure centre provision was being closely reviewed.

(ix)           Original assumptions for pay awards were increases of 4.75%, 3.5% and 2% in successive years, revised assumptions now 6%, 5% and 4%.  Pay awards not yet agreed for 2023/24.  Confirmed that back-pay would be available and not a sudden strain on the budget once back-pay awarded.

(x)             Investment income – more money was allocated in the budget this year reflecting higher interest rates and as a result the Council was in a stronger position, with investment returns in September above 5%.  £50 million invested. 

(xi)           Concerns raised about the need to fall back on reserves.  Confirmed that budget setting should address this (at least in part) by looking at service areas such as garden waste, car parking and general service cuts.  Council tax was capped and unlikely to assist in improvements. 

(xii)          There had been some issues relating to the housing stock and appointment of contractors.

(xiii)        Discussion around  ...  view the full minutes text for item 5.

Verbal report.

Prior to the meeting a report was circulated to members of the Panel by the Cabinet Lead Member for Finance, Customer & Support Services, Revenues and Benefits on the approach to 2024/25 Budget Setting.

Post meeting note: The Cabinet Lead Member’s report was published after the meeting as an agenda supplement.

Key points of discussion:

(i)              The MTFS for last year predicted that for 2024/25 the working balance would reduce to £2.8 million.  This prediction had now changed to £4.1 million, due to risk mitigation and management decisions.  Would not want to be below £2.5 million.  The shift in the MTFS figures showed an improved financial position.

(ii)             Moving forward would be looking at revenue and expenditure and the impact on services with the aim of reducing the use of the working balance.  Statutory services and environment strategy would be planned in.

(iii)           Corporate Plan in progress and a residents’ survey was currently being distributed. 

(iv)           No plans for cash/capital to revert back to treasury as underspends unlikely to be an issue.

RESOLVED that the report and discussion on the matter be noted.

Reason

To ensure the Panel was kept informed about the approach to 2024/25 budget setting and to assist with the future discussions of the Panel.