Issue - meetings

Portfolio Holders – Councillor Martin Cook & Councillor Neil MacDonald

This report presents the “Medium Term Financial Plan 2025/26” document, which includes the budget for 2025/26 and the provisional budget for future years.

Executive is requested to recommend that Council, on 19th February 2025, approves the “Medium Term Financial Plan 2025/26” document and in particular:

·     General Fund – budget, savings, growth, fees and charges and Council Tax levels for 2025/26.

·     Capital Programme.

·     Investment Strategy.

·     Treasury Management and Reserve Levels.

87.1.     Councillor MacDonald introduced the report, noting that the Council had been affected by significant economic uncertainty over the past few years. Government had only agreed a one-year financial settlement but had committed to longer term settlements in future years which would make longer term planning easier. There had been significant increases in costs outside of the Council’s control, such as much higher demand for accommodation for homeless people, and higher interest rates. It was increasingly difficult to make savings as so many had already been made.

87.2.     Councillor MacDonald noted that the Council was proposing a Council Tax increase of 2.98%. This was the lowest component of the three elements with Suffolk County Council proposing a 4.99% increase and the Police and Crime Commissioner proposing a 5.06% increase. Councillor MacDonald noted that this would allow the Council to protect the services which people loved and valued, but recognised that in addition to the hard decisions already taken, more were likely to be needed.

87.3.     In accordance with Part 4, Section 4, Paragraph 3.9 of the Constitution, the following questions were asked:

Question 1 - Councillor I Lockington

I note on page 30 in point 2.18 that we have received a number of new grants including the Extended Producer Responsibility Grant, Recovery Grant and Building Safety Grant. In addition, the government have announced the intention of issuing multi-year settlements.

How much have we received in the two first Grants and what are the restrictions and when might we learn about the second Grant?

87.4.     Councillor M Cook reported that the estimated Extended Producer Responsibility Grant covered the collection of household packaging waste and that the Council expected to receive £1,573,000 for 2025/26. 

87.5.     The final local government finance settlement for 2025/26 included a one-off Recovery Grant for the Council of £688,000. This grant was un-ringfenced and would be received in 2025/26. A Building Safety Grant of £68,000 was to be received in April 2025 for building safety enforcement work on high rise buildings. There was no information on the intention to issue future multi-year settlements at this stage.

Question 2 - Councillor I Lockington

Further within the detailed Budget for next year I notice you are expecting the cost of Refuse Collection and the spend on Recycling to be much reduced this year. Is the saving in this budget realistic with the change in the Refuse Collection service.

87.6.     Councillor M Cook reported that the reduction in the refuse collection and recycling budgets in 2025/26 reflected the introduction of brown bin charging and the £1,573,000 Extended Producer Responsibility Grant.  The revenue budget was realistic, but it remained under review, as the simpler recycling arrangements developed.

87.7.     Councillor Fisher asked whether the significant increase in Revenue Support Grant from 2026/27 was realistic. The Director – Resources and Housing, Ian Blofield, reported that an expert financial advisor had been used to estimate future years Revenue Support Grant payments.

87.8.     Councillor Fisher expressed concern that earmarked reserves were being used for  ...  view the full minutes text for item 87