Agenda item

The Council considered a report of the Corporate Director of Resources which provided information on the robustness of the estimates and the adequacy of reserves in the Council’s Budget for 2024/25 (for copy see file of Minutes).

Referring to paragraph 29 of the report about general fund reserves at 5-7% and that this was based on an assessment of the risks contained within the

revenue budget, Councillor E Adam said that in the quarter two figures showed an overspend for Children and Young People’s and Cabinet agreed  to use the MTFP Support Fund to balance the books.  He asked what level of risk did that action pose, to reserves, to the MTFP and to set a balanced budget in future years.  In response the Corporate Director of Resources explained that the report showed a balanced judgement, taking into account the children in care placements, and advised that there was a prudent provision approach and an element of contingencies within the budget planning.  Overspend in the current year in terms of CYP had been a material factor in this years budget, in terms of growth including an increase of £16.6 million for children in care, and that was now factored into the base budget.  With regard to reserves it was confirmed that there were sufficient to cover off risks over and above that, and that sufficient growth had been built in to deal with the increase in the number of children in case and the associated costs.  This had been based on work carried out on demographic growth.  The Corporate Director of Resources assured members that the reserve levels were sufficient to see us through the next year and were sufficient to cover off risks, including the increase to the numbers of children in care. 

Councillor Marshall asked the Corporate Director of Resources to outline the process should Council not agree the budget. The Corporate Director of Resources explained that firstly, the Council would need to be clear on the reasons why the budget was not agreed and in doing so, charge the Cabinet with reconsidering their proposals. A contingency plan discussed with the Monitoring Officer would result in a Cabinet meeting the following week and a Special County Council meeting to be convened on 8 March 2024.

Resolved:

That the Council have regard to the statement when approving the budget and the level of Council Tax for 2025/26.

The Chair reminded Council that under Paragraph 14.6 of the Council Procedure Rules recorded votes would take place for each of the budget and council tax items.

Councillor A Hopgood, Leader of the Council,  Moved a Motion without Notice that Agenda Item Nos. 10 and 11 be considered together as they were inextricably linked. The Motion was Seconded by Councillor R Bell, Deputy Leader and Cabinet Portfolio Holder for Resources,  and agreed by Council.

The Head of Legal and Democratic Services advised Council that considering the two items together impacted on the length of time that Members could speak.  The proposer and seconder of the Motion and all Group Leaders would have 10 minutes. Councillor R Bell, although a Group Leader, would be seconding the budget in his capacity as Deputy Leader and therefore could speak for 6 minutes. All other speakers would have 3 minutes and the Leader would then have a 6 minute right of reply.  No amendments had been received by the deadline.