Report by the Director of Resources and Deputy Chief Executive (attached).

The Lead Member for Resources and Commercialisation addressed Council gave a brief introduction:

·       The Council had a legal duty to prepare a balanced budget.

·       This had been achieved despite the unforeseen pressures on Councils due to higher than expected pay awards, ever decreasing central Government funding and the high rise in inflation.

·       The budget process began in the summer of 2023 with a cross party workshop in the autumn of 2023.

·       The Council had responded to the Government’s consultation on the Provisional Local Government Finance Settlement.

·       Rural authorities were still seen as the ‘poor relation’ compared to urban authorities. With an average, per head, of £142 less awarded to rural authorities.

·       Council tax had to be increased to help bridge the gap in funding.

·       The purchase of Green Lanes was seen as a strategic decision proving to be a beneficial revenue stream.

·       £200,000 had been earmarked for the continuation of the much-valued Street Marshal scheme.

·       The demand on Temporary Accommodation was an ever growing burden but somewhat mitigated by the purchase of properties, by the Council, to help offer a cheaper alternative to expensive Bed and Breakfast placements.

·       The delay in the fair funding review, which was now expected in two years’ time, meant predicting the Medium term finance strategy was challenging.

·       She thanked the Director of Resources and Deputy Chief Executive and his team for producing a balanced budget without the need to cut services but increasing services with the continuation of the Street Marshal scheme.

Council received a presentation by the Director of Resources and Deputy Chief Executive on the Revenue Budget 2024-25, Capital Programme and Medium Term Financial Strategy 2024-25 to 2029-30 (circulated previously) as follows:

·       The provisional Local Government finance settlement was announced in December 2023 and confirmed a 3% funding guarantee for all authorities and Council Tax Referendum limit principles of 3% or £5 (whichever was the highest).

·       The final Local Government finance settlement figure had been announced last week.

·       Members had previously received the detailed budget book early, normally circulated ahead of the February Council meeting.  This information looked in detail at funding each service area of the Council.

·       Nationally the total funding settlement stood at just over £64 billion with a core spending power of 6.5%.  This included council tax setting.

·       The allocation of the finance settlement depended on the type of authority.  North Devon Council was a Shire District authority. 

·       Nationally a Shire District authority received 4.9% Core Spending Power share but our allocation was lower still at 4.7%.

·       The level of CPI inflation at October 2023 was 4.6%.

·       For 2024-25 the Revenue and Support Grant and Baseline Funding increased by £119,000.

·       The Rural Services Delivery grant saw an increase of £57,000.

·       The New Homes Bonus award of £351,000 was £97,000 less than 2023-24.  This was a reduction in the grant not the Council’s lack of new homes.

·       Services grant provided was £21,000 that was £100,000 less than 2023-24.

·       The 3% Funding Guarantee of £1,507,000 gave an increase of £354,000 more than  ...  view the full minutes text for item 107

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Revenue Budget 2024/25, Capital Programme and Medium Term Financial Strategy 2024-25 to 2029-30 together with Minute Extract of Strategy and Resources on 5th February 2024.

The Lead Member for Resources and Commercialisation addressed the Committee and gave a brief introduction to the budget, summarising the process taken to achieve a balanced budget:

·       The Council had a legal duty to prepare a balanced budget.

·       This had been achieved despite the unforeseen pressures on Councils due to higher than expected pay awards, ever decreasing central Government funding and the high rise in inflation.

·       The budget process began in the summer of 2023 with a cross party workshop in the autumn of 2023.

·       The Council had responded to the Government’s consultation on the Provisional Local Government Finance Settlement.

·       Rural authorities were still seen as the ‘poor relation’ compared to urban authorities. With an average, per head, of £142 less awarded to rural authorities.

She outlined the steps that had been taken by the Council to ensure that funding challenges had been met to enable the Council to maintain its vital services to the community:

·       Council tax had been increased by 2.99% to bridge the gap in funding.

·       The purchase of Green Lanes in 2021 was seen as a strategic decision proving to be a beneficial revenue stream.

·       £200,000 had been earmarked for the continuation of the much-valued Street Marshal scheme.

·       The demand on Temporary Accommodation was an ever growing burden but somewhat mitigated by the purchase of properties, by the Council, to help offer a cheaper alternative to expensive Bed and Breakfast placements.

·       The delay in the fair funding review, which was now expected in two years’ time, meant predicting the Medium term finance strategy was challenging.

The Lead Member for Resources and Commercialisation gave thanks to the Director of Resources and Deputy Chief Executive and his team for producing a balanced budget without the need to cut services.

The Director of Resources and Deputy Chief Executive gave the Committee a presentation, which included the following highlights:

·       The provisional Local Government finance settlement was announced in December 2023 and confirmed a 3% funding guarantee for all authorities and Council Tax Referendum limit principles of 3% or £5 (whichever was the highest).

·       The final Local Government finance settlement figure was expected to be announced this week.

·       Members had received the detailed budget book early, normally circulated ahead of the February Council meeting. This information looked in detail at funding each service area of the Council.

·       Nationally the total funding settlement stood at just over £64 billion with a core spending power of 6.5%. This included council tax setting.

·       There were significant cuts in core grant funding from Government since 2015-16.

·       Government SFA funding, which used to equate to around 50% of authorities funding was now a smaller proportion, with council tax collection now equating to more than 50% of revenue into the Council.

·       The allocation of  ...  view the full minutes text for item 32

Report by Director of Resources and Deputy Chief Executive (attached)

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Revenue Budget 2024-25, Capital Programme and Medium Term Financial Strategy 2024-25 to 2029-30.

The Lead Member for Resources and Commercialisation addressed the Committee and gave a brief introduction:

·         The Council had a legal duty to prepare a balanced budget.

·         This had been achieved despite the unforeseen pressures on Councils due to higher than expected pay awards, ever decreasing central Government funding and the high rise in inflation.

·         The budget process began in the summer of 2023 with a cross party workshop in the autumn of 2023.

·         The Council had responded to the Government’s consultation on the Provisional Local Government Finance Settlement.

·         Rural authorities were still seen as the ‘poor relation’ compared to urban authorities.  With an average, per head, of £142 less awarded to rural authorities.

·         Council tax had to be increased to help bridge the gap in funding.

·         The purchase of Green Lanes was seen as a strategic decision proving to be a beneficial revenue stream.

·         £200,000 had been earmarked for the continuation of the much-valued Street Marshal scheme.

·         The demand on Temporary Accommodation was an ever growing burden but somewhat mitigated by the purchase of properties, by the Council, to help offer a cheaper alternative to expensive B&B placements.

·         The delay in the fair funding review, which was now expected in two years’ time, meant predicting the Medium term finance strategy was challenging.

The Lead Member for Resources and Commercialisation gave thanks to the Director of Resources and Deputy Chief Executive and his team for producing a balanced budget without the need to cut services.

The Director of Resources and Deputy Chief Executive gave the Committee a presentation, which included the following highlights:

·         The provisional Local Government finance settlement was announced in December 2023 and confirmed a 3% funding guarantee for all authorities and Council Tax Referendum limit principles of 3% or £5 (whichever was the highest).

·         The final Local Government finance settlement figure was expected to be announced this week.

·         Members had received the detailed budget book early, normally circulated ahead of the February Council meeting.  This information looked in detail at funding each service area of the Council.

·         Nationally the total funding settlement stood at just over £64 billion with a core spending power of 6.5%.  This included council tax setting.

·         There were significant cuts in core grant funding from Government since 2015-16.

·         Government SFA funding, which used to equate to around 50% of authorities funding was now a smaller proportion, with council tax collection now equating to more than 50% of revenue into the Council.

·         The allocation of the finance settlement depended on the type of authority.  North Devon Council was a Shire District authority. 

·         Nationally a Shire District authority received 4.9% Core Spending Power share but our allocation was lower still at 4.7%.

·         The level of CPI inflation at October 2023 was 4.6%.

·         For 2024-25 the Revenue and Support Grant and Baseline Funding increased by  ...  view the full minutes text for item 90