Agenda item - Any Other Business

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 24 of the Council Procedure Rules contained in the Constitution requires that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks' notice of non-urgent items is required.

(a) Draft Budget 2024/25 (including General Fund & HRA revenue & capital, Fees & Charges, and an updated Medium-Term Financial Plan)

(1) That the Cabinet considered the draft General Fund revenue budget proposals for 2024/25 (Appendix A), specifically including supplementary confidential items Annex 2 (Cost Centre Summary) and Appendix F (Savings Proposals).

(2) That the Cabinet considered the draft Housing Revenue Account (HRA) revenue budget proposals for 2024/25 (Appendix B).

(3) That the Cabinet considered the draft General Fund and HRA capital proposals for 2024/25 through to 2028/29 (Appendix C).

(4) That the Cabinet considered the draft Fees and Charges proposals for 2024/25 (Appendix D).

(5) That the Cabinet considered and approved the updated Medium-Term Financial Plan (General Fund and HRA) (Appendix E); and

(6) That the Cabinet requested that the Overview & Scrutiny Committee consider the draft budget proposals for 2024/25 (Appendix A) and associated documents (Appendices B to F) and make comments for consideration at the Cabinet meeting on 5th February 2024.

(a) Draft Budget 2024/25 (including General Fund & HRA revenue & capital, Fees & Charges, and an updated Medium-Term Financial Plan)

The report detailed the General Fund element of the draft Budget for 2024/25 that comprised Net Expenditure of £17.929 million and Funding included assumed Government grants of £1.514 million (“Core Spending Power + 3.0%”). It also included a contribution of £0.263 million towards the replenishment of the adopted contingency balance within the General Fund Reserve.

The HRA draft Budget for 2024/25 anticipated a planned deficit of £0.465 million (funded from surplus HRA balances).

The General Fund Programme comprised a total expenditure of £61.806 million over the five years, including £33.496 million in 2024/25. In addition, the HRA Programme comprised total expenditure of £140.424 million over the five years, including £33.087 million in 2024/25.

The Finance and Economic Development Portfolio Holder reported that a useful meeting had been held with the Overview and Scrutiny Committee on 12 December when the draft budget had been reviewed in great detail on some difficult decisions. Costs had increased significantly, so the Council knew this draft budget would be challenging and he thanked the 151 Officer and the Interim Chief Financial Officer for their work. With this structural budget, the Council had to move to a place where Council spending matched its income. An error in the report under General Fund was noted at 2.1 that: The updated General Fund Capital Programme of £53.913 million presented in October 2023, included an indicative capital requirement of £40.996 million for 2024/25 based on progress against the adopted 2023/24 Programme (at the Quarter 2 stage) and other emerging intelligence. The budget would be updated over the coming month as the final Draft Budget 2024/25 would go to the Cabinet on 5 February 2024.

The Leader also thanked all the officers who had been involved in the budget process. Councillor C Whitbread continued that Epping Forest District Council was a fit and lean council and therefore, it was harder to make savings, so the Council was fit for the future. Shared services and working in partnerships with other local authorities all helped to make savings and reduce costs.

Councillor S Kane asked about the miscellaneous income which included Qualis and if the net income for Qualis would be £2 million again. The Finance and Economic Development Portfolio Holder replied that loans to Qualis were fixed term loans in general. The 151 Officer added that Qualis would still require some extra funding to complete on the delivery of current schemes, so the loan value might increase fractionally as could interest but was reflected in this draft budget on where the Council and Qualis expected borrowing rates to be. Councillor S Kane commented that with this £2 million revenue stream coming in alongside a potential 3% rise in Council Tax, in revenue terms, what did that 3% represent in comparison to the £2 million? The Finance and Economic Development Portfolio Holder replied the 3% Council Tax rise equated to £300,000 which was a lot less than £2 million.

Councillor N Bedford queried if the draft budget would bring the Council back up to £4 million in reserves. The Finance and Economic Development Portfolio Holder replied that the £4 million reserves figure had been set by the 151 Officer for a number of years and the Council would continue to do what it could to get back to having the right amount of reserves.

Councillor R Brookes was reassured by the Finance and Economic Development Portfolio Holder that the Council was not near bankruptcy. The Finance and Economic Development Portfolio Holder replied that the section 114 notice did not mean a local authority would go bankrupt, but it limited what that local authority could spend. This Council was well run. There would be challenges. By prioritising what it did, being prudent now and balancing the budget, the Council would continue to run its services and community hub.

The report set out the options considered, if any, and the reasons for the recommendation and the decision.

Decision: