Agenda item

The Director of Finance submits a draft report proposing the General Fund

Revenue Budget and Capital Programme for 2025/26.

The Director of Finance submitted a report detailing the proposed Revenue Budget and Capital Programme for 2025/26.

The Head of Finance gave an overview of the report, key points to note were as follows:

·       The medium-term financial outlook is the most severe we have ever known. Like many authorities, Leicester City Council faces increasing difficulties in being able to balance our budget. Some authorities had already reached this position and been forced to issue a formal report under section 114 of the Local Government Finance Act 1988.

·       Social Care has had to pay its share of cost savings and reducing scope to reduce pressures not currently met by previous years grants. Leicester City Council have been fortunate to have reserve funds to support the gap.

·       Following the Chancellors announcement in October there may be additional funds available for the Adult Social Sector.

·       The Council had already made substantial cost savings since 2010/11 during the decade of austerity. These actions have helped the Council to balance the budget and remove the worry of Section 114.

·       A strategy was developed to implement revised budget projections:

o   Strand One – Releasing one off monies of £110m to buy time.

o   Strand Two – Reductions of £13m in the approved Capital Programme, which will reduce the borrowing required.

o   Strand Three – Embark on an ambitious programme to sell property, with the aim of securing an additional £80m of one off monies.

o   Strand Four – Continue to take steps to constrain growth in those statutory services that are under demand led pressure in Social Care Services and Homelessness.

o   Strand Five – make ongoing savings to the revenue budget of £20m per year.

·       If successful, the implementation of the strategy would result in the revised budget projections of, £46.7m in 2025/25 and rises to £90m in 2027/28.

·       A Council Tax increase of £2.4m will go to Full Council.

·       The next 3 years budget is balanced as shown in the report. With the strategy comes risk, which has been identified under Section 25 of the Local Government Act 2003.

In response to questions and comments from Members, it was noted that:

·       The phenomenal work of the Adult Social Care team, moving to a strength based approach through Scrutiny and work together over the last 3 years has stopped the Council facing a significant worse stance.

·       Specific details haven’t been named yet on which surplus properties that aren’t producing any costs will be sold in the Capital Programme Budget.

·       The cost increase in Council Tax has already been factored and the report will go to Full Council on 16^th January.

·       The report didn’t included Inequality Impact Assessments for Care Leavers. A line would be added in section 15.3 of the report t included Care Leavers in to the Councils Protected Characteristics.

AGREED:

1.     The Commission noted the report.

2.     Section 15.3 of the budget report will be updated for Care Leaver to be included in the Councils Protected Characteristics.

3.     An update on supported living will be presented at the next meeting.

4.     Members to be updated once properties which are determined to be sold under the Capital Programme have been decided.