Agenda item

BUDGET 2024-25 AND MEDIUM-TERM FINANCIAL PLAN

This presentation will outline the Council’s strategy to the 2024-25 Budget within the context of the Corporate Plan.?? The presentation will provide details of the approach to setting the budget for the next financial year and the broad impact this will have on the delivery of services.

Minutes:

Councillor Wearmouth, Deputy Leader of the Council and Portfolio Holder for Corporate Services gave a presentation to outline the approach being taken to set the budget for the next financial year with focus on its key priorities including achieving value for money, tackling inequalities and driving economic growth as well as working towards net zero. 

 

He outlined the consultation process taking place between 12 December 2023 and 26 January 2024 which included presentations at all 5 of the Local Area Committees, an online questionnaire, policy conference, briefings for the political groups and individual meetings, and an online Question and Answer session by the Leader on 31 January 2024.  The detail regarding initiatives and schemes would be presented at a meeting of the Corporate Services Overview and Scrutiny Committee which all members would be invited to.  (A copy of the presentation is enclosed with the signed minutes.) 

 

Members were referred to 3 important documents which provided relevant information to the budget consultation: 

 

  • Budget Engagement 2024/25 
  • Agenda papers for the meeting of Cabinet on 16 January 2024 
  • Capital Programme 

 

The presentation outlined:  

 

  • The sources of revenue funding: 
  • Council Tax; 
  • Government grants; 
  • Business Rates; and 
  • Fees and charges for services 
  • Options for achieving a balanced budget. 
  • Background to the Council’s finances. 
  • Proposals for all the service areas including details of current budget pressures, investments planned and proposals for what could be done differently (the details were contained within the online Budget Engagement documentation): 
  • Enabling Services – savings proposed of £2.854 million. 
  • Adults – a budget £235 million which included support to vulnerable adults to live independently, a real living wage for adults. 
  • Children, Young People and Education – budget £269.2 million; savings proposed of £2.084 million. 
  • Public Health, Inequalities and Stronger Communities – budget £32.8 million; savings proposed of £0.7 million.  A new provider Places for People Leisure Management would take over Active Northumberland next year. 
  • Place and Regeneration – budget £131.7 million; with a budget of £26 million for the LTP and £26.9 million for cycling and walking. 

 

Many areas of the Council were experiencing: 

 

  • Increasing costs for supplies and services including energy. 
  • Increasing demands on Children’s and Education budgets. 
  • Increasing demand for care and support to vulnerable adults and older people. 
  • Interest rates had also increased leading to a review of the Capital Programme.  The programme was funded by borrowing; for every £1 million borrowed, the cost to the revenue budget was approximately £0.088 million. 

 

The following comments were made in response to members questions:-  

 

  • The Authority’s allocation for the social care budget would be £3million.  He was usure whether that money would be used to reduce that part of the precept and would find out if the funds being made available by the Government  would be ringfenced. 
  • Councillor Jeff Watson should be contacted regarding the Innovative Library query. 
  • With reference to the cycling network being neglected in Cramlington and the use of cycling routes for health and wellbeing .  The cycling and walking provision in Cramlington would be made available through the LTP and other funding. 
  • A case would need to be made to increase the Local Transport Programme. 
  • The Council had used MORI in the past for user research. 
  • There were already descriptors to explain what the pie chart was on the Council Tax bills. 
  • The discretionary spend would be mainly used for public health and children. 

 

RESOLVED that the information be noted.