Agenda item

To consider a report on the Medium Term Financial Strategy - 2025/26-2028/29 Incorporating the Reserves Strategy.

Consideration was given to the Medium Term Financial Strategy 2025/26 to 2028/29 incorporating the Reserves Strategy, the 2024/25 Treasury Management Strategy and 2024/25 to 2026/27 Prudential and Treasury Indicators, the Revenue Budget 2024/25, the Revenue Budget 2024/25 Statutory Report of the Chief Financial Officer, the Council Tax Resolution 2024/25, the Capital Budget 2024/25 and Capital Investment Programme 2024/29, and the Council Tax Support Scheme and Empty Homes Premium Policy. Consideration was also given to the relevant minutes 77, 78, 79, 80 and 81 of the Executive (15^th February 2024).

 

It was moved by Councillor M Lishman and seconded by Councillor Anwar that the recommendations outlined in agenda items 5f to l and as set out in minutes 77 to 81 of the Executive (15^th February 2024) be approved.

 

An amendment was submitted by the Labour Group and moved by Councillor Townsend and seconded by Councillor Graham.

 

‘Resources for vital services, a welcoming town centre and additional support for those in need.

 

a. £50000 for Greenspaces with a priority being improving the maintenance of grassed areas and verges in residential areas across the Borough.

 

b. £50000 for Streetscene with the priority being improving the cleanliness of the Boroughs’ streets with a focus on littering and dog fouling (clean up and prevention).

 

c. A one off £25000 for the town centre Business Improvement District (BID) towards their key theme of implementing projects and services that support a safer, more attractive visitor experience.

 

d. A one off £20000 for Streetscene to provide targeted waste management services for households in financial need and requiring crisis support. Qualifying households to be referred by Streetscene/Housing/Burnley Together/Calico as per similar schemes provided in 23/24 under the Household Support Fund.

 

e. £1000 for Treasury Management to cover for loss of interest income arising from financing these proposals.

 

TOTAL £146000 (of which £45000 is for one off proposals)

 

To be paid for by :

1.             £24000 increase in salary savings from vacant posts (reflects the increase in the salary budget from 23/24 to 24/25)

2.             £30000 from a 2% reduction in utility usage (efficiency target to reduce consumption of electricity/gas)

3.             £47000 contribution to revenue from the £1.4m annual contribution to the Business Rates Volatility reserve

4.             £37500 contribution to revenue from the no longer required Primary Engineer Reserve.

5.             £7500 contribution to revenue from the Cost of Living reserve.

 

TOTAL £146000’

 

 

Adjournment of the meeting

 

With the consent of the meeting the Mayor adjourned the meeting at 19:00.

 

The meeting reconvened at 19:10.

 

In accordance with Council Procedure Rule 16.7 a recorded vote was taken on the amendment.

 

The amendment was declared to be LOST.

 

 

 

An amendment was submitted by the Conservative Group and moved by Councillor McGowan and seconded by Councillor Hosker.

 

‘Insert the following additional decisions relating to one-off spending in 2024/25

 

1.1.        Agree savings summarised in Table A from the Revenue Budget, generating a saving of £120,000 for 2024/2025

 

Table A: Revenue savings

 

Item	Saving (£)
Keep the Council Tax Support Scheme at a rate of 85% as per the consultation response.	(80,000)
Reduce the budget for Calico’s Burnley Together from £140,000 this year to £100,000.	(40,000)
Total savings	(120,000)

 

 

Insert the following decisions relating to one-off spending in 2024/25:

 

1.2 Agree to mitigate the Council Tax rise of 2.99% through a smaller Council Tax increase for residents. And a one-off rebate on all residential properties within the borough equivalent to 1.99%. Total cost £156,000.

 

1.21 A Council Tax increase of 2.99% will generate additional income of £233,000.

 

1.22 A Council Tax increase of 1% will generate an additional income of £77,000.

 

1.23 Note that the decisions at 1.1 have the combined effect of maintaining a balanced ongoing budget position whilst requiring the Council to find another £36,000 to mitigate the proposed Council Tax rebate of 1.99% for 2024/25.

 

Table B: New additional one-off spending capacity created in 2024/25

 

Item	Capacity (£)
Budget Efficiency in 2024/25 arising from savings in expenditure summarised in Table A	(120,000)
Use of the Cost of Living Reserve	(36,000)
Total additional one-off spending capacity in 2024/25	(156,000)

 

1.3  Agree to use the Cost of Living Reserve as outlined in Table B, to fund the spending for 2024/25 outlined in 1.2

 

 

Adjournment of the meeting

 

With the consent of the meeting the Mayor adjourned the meeting at 19:36.

 

The meeting reconvened at 19:42.

 

In accordance with Council Procedure Rule 16.7 a recorded vote was taken on the amendment.

 

The amendment was declared to be LOST.

 

 

 

In accordance with Council Procedure Rule 16.7 a recorded vote was taken on the original motion and it was declared to be CARRIED.

 

 

 

RESOLVED, THAT:

 

Medium Term Financial Strategy

1)    The latest Medium Term Financial Strategy be approved;

2)    The Reserves Strategy, as appended to the Medium Term Financial Strategy, be approved;

Treasury Management Strategy

3)    The Treasury Management Strategy Statement for 2024/25 as set out in Appendix 1 be approved;

4)    The prudential and treasury indicators for 2024/25 to 2026/27 as per Appendix 2 including the authorised limit for external debt of £100.199m in 2024/25 be approved;

5)    The list of Counterparties for Deposits outlined within Appendix 3 be approved;

6)    The Council’s MRP Statement for 2024/25 as set out in Appendix 4 be approved;

Revenue Budget 2024/25

7)    The approach that has been adopted in developing budget proposals that reflect the Council’s Strategic Objectives for 2024/25 be endorsed;

8)    The proposals contained in the Revenue Budget 2024/25 report be approved;

9)    The setting of a Council Tax requirement of £8,054,980 for the financial year 2024/25 be approved;

10)The setting of a Net Budget Requirement of £18,986,918 for 2024/25 be approved;

11)The statutory report issued by the Director of Resources under the Local Government Act 2003 be received and considered;

12)The Chief Operating Officer/Directors/Heads of Service be authorised to progress action plans to deliver the 2024/25 budget;

13)A Council Tax (Band D) figure of £337.82 for this Council for the year commencing 1^st April 2024 be approved and the statutory resolution to set the full Council Tax for the year be adopted. This is equivalent to a 2.99% Council Tax increase;

Revenue Budget 2024/25 Statutory Report of the Chief Financial Officer

14)The report be noted and Members have regard to its contents when setting the Revenue Budget for 2024/25.

Council Tax Resolution

15)It be noted that on 19^th January 2024 the Council calculated the Council Tax base 2024/25

a)    for the whole Council area as 23,844 band D equivalent properties (Item T in the formula in Section 31B of the Local Government Finance Act 1992 [the “Act”] as amended by the Localism Act 2011) b)    for dwellings in those parts of its area to which a Parish precept relates as in the attached Appendix B. 16)   The Council Tax requirement calculated for the Council’s own purposes for 2024/25 (excluding parish precepts) be £8,054,980.
17)  The following amounts be calculated by the Council for the financial year 2024/25 in accordance with Sections 31 to 36 of the Act   (a)              £55,394,091 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) (a) of the Act taking into account all precepts issued to it by Parish Councils;   (b)              £47,151,111 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the Act;   (c)              £8,242,980 being the amount by which the aggregate at (3)(a) above exceeds the aggregate at (3)(b) above, calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act);   (d)              £345.70 being the amount at (3)(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish Precepts);   (e)              £188,000 being the aggregate of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Appendix B);       (f)                £337.82 being the amount at (3)(d) above less the result given by dividing the amount at (3)(e) above by Item T (the amount at 1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item (Parish precept) relates.
18)      It be noted that the County Council, the Police and Crime Commissioner for Lancashire and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below . 19)      The Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby set the aggregate amounts shown in the tables below and in Appendix A as the amounts of Council Tax for 2024/25 for each part of its area and for each of the categories of dwellings.
VALUATION BANDS   Burnley Borough Council   A B C D E F G H £225.21 £262.75 £300.28 £337.82 £412.89 £487.96 £563.03 £675.64     Lancashire County Council   A B C D E F G H £1,102.19 £1,285.89 £1,469.59 £1,653.29 £2,020.69 £2,388.09 £2,755.48 £3,306.58     Police and Crime Commissioner for Lancashire   A B C D E F G H £175.60 £204.87 £234.13 £263.40 £321.93 £380.47 £439.00 £526.80     Lancashire Combined Fire Authority   A B C D E F G H £56.49 £65.90 £75.32 £84.73 £103.56 £122.39 £141.22 £169.46     Aggregate of Council Tax Requirements   A B C D E F G H £1,559.49 £1,819.41 £2,079.32 £2,339.24 £2,859.07 £3,378.91 £3,898.73 £4,678.48       20)     It be determined that the Council’s basic amount of Council Tax for 2024/25 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992;   Capital Budget for 2024/25 and Capital Investment Programme 2024-29 21)     The 2024/25 Capital Budget, totalling £16,290,933 as set out in Appendix 1 be approved; 22)     The 2024-29 Capital Investment Programme as set out in Appendix 1 be noted; 23)     The estimated position on capital resources as set out in Appendix 2 be noted; Council Tax Support Scheme 2024/25 and 2025/26 and Empty Homes Premium Policy 24)     Changes to the Council Tax Support Scheme for 2024/25 to increase the maximum level of subsidy for working age claimants from 85% to 95% for a one-year period be approved; 25)     Changes to the Council Tax Support Scheme for 2025/26 to increase the maximum level of subsidy for working age claimants from 85% to 90% for a one-year period be approved; 26)     The Council’s Empty Homes Premium Policy be approved; 27)     The Director of Resources, in consultation with the Executive Member for Resources and Performance, be authorised to amend the Empty Homes Premium Policy to ensure that it complies with forthcoming legislation.