Agenda item

Draft Revenue and Capital Budget Proposals for 2024/25


E 58/23           

The Executive was presented with a report that outlined a series of draft revenue and capital budget proposals for 2024/25.


At the invitation of the Chairman, the Section 151 Officer informed that, since the agenda papers had been published, there had been further announcements made from Central Government in response to the consultation on the Local Government Finance Settlement and clarification over the Rural Services Delivery Grant.  The impact of these updates (which were likely to be minimal) would be included in the report to be presented to Full Council on 15 February 2024.


In discussion, reference was made to the second homes premium.  In expressing disappointment that the primary legislation had not included the requirement for the additional monies to be spent on the delivery of affordable housing, it was noted that conversations were taking place with Devon County Council colleagues and it was hoped that this objective could still be reached.


It was then:




That the Executive RECOMMEND to Council:


i)     to increase Council Tax for 2024/25 by 2.99% (This would increase a Band D council tax for 24/25 from £185.42 to £190.96 – an increase of £5.54 per year or under 11 pence per week);


ii)    the financial pressures shown in Appendix A of £2,846,000;


iii)   the revenue expenditure (£650,000) and capital expenditure (£350,000) for the Year 1 delivery plan of the Council Plan (2024/25), totalling £1million, as set out in section 3.30 of the report.


iv)   the savings/additional income of £(1,460,000) as shown in Appendix A;


v)    the net contributions to/(from) Earmarked Reserves of £60,427 as shown in Appendix D, including the proposed use of £704,173 of New Homes Bonus funding to fund the 2024/25 Revenue Budget as set out in 3.20 of the report and £400,000 from the Business Rates Retention Earmarked Reserve as set out in 3.13 of the report;


vi)   that the Council should set its total net expenditure for 2024/25 as shown in Appendix B as £13,034,894


vii) the Capital Bid for £90,000 to renew and upgrade the Council’s bank reconciliation software and to fund this from the annual revenue contribution of £181,600 into the Capital Programme, as set out in 8.4.


viii) that Unearmarked Reserves should continue to have a minimum level of £1.5million (as set out in the Medium Term Financial Strategy in September 2023), but an operating level of a minimum of £2million; and


ix)   that the level of reserves as set out within this report and the assessment of their adequacy, and the robustness of budget estimates are noted. This is a requirement of Part 2 of the Local Government Act 2003.

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