Agenda item

The Council is required to set a balanced budget and agree the level of Council Tax for 2024/25 and this report contains a summary of the proposals that have been considered for inclusion. The proposals were considered and scrutinised in detail by the Budget Joint Overview and Scrutiny Committee on 15 January 2024.  The budget proposals were considered by Cabinet on 18 January and 6 February 2024 and the final proposals are included in this report.

Members considered the Budget Proposals for 2024/2025.

 

In moving the Budget proposals, the Leader of the Council ran through a presentation to accompany the Budget, which was appended to these minutes. The following points were highlighted:

 

·       The Tunstall software bid within the Housing Revenue Account (HRA) referred to ‘opening mechanisms’ within sheltered housing.

·       The highest amount of funding within the HRA was for Voids refurbishments.

·       Major projects were listed within the General Fund (GF). These included new projects in the Cattle Market, Stamford, and also the £1 million earmarked for LED street lighting. Replacing existing street lighting would pay for itself within less than four years.

·       Over £13 million was budgeted within the HRA for new builds and energy efficiency works. The gap between housing stock sales and purchases was reducing, meaning that the level of loss of Council housing stocks would narrow in years to come.

·       The administration had committed to improving the Earlesfield Community Centre.

·       Works in progress included improvements to Grantham using the Future High Streets Fund (FHSF). The FHSF gave the opportunity to make improvements to Grantham Marketplace.

·       Investigations into battery recycling were still ongoing.

·       In March a new bus service was being introduced between Stamford and Grantham by Centrebus.

·       There were high levels of compliance seen across the housing stock in terms of gas, electricity, legionella, damp and mould, asbestos, fire risk, lift inspections, and smoke.

·       The consultation on the 3% Council Tax rise was conducted through a database compiled through the SK Today publication.

 

The Budget proposals were seconded.

 

An amendment to the Budget proposals was moved and seconded which aimed:

 

‘To create a reserve of £60,000 for clearing A1 verge sides – the “Clean the A1 Reserve”. This is to be transferred from the Local Priorities Reserve.’

 

Debate on the amendment ensued, and the following points were highlighted:

 

·       £60,000 may well be sufficient to clear outstanding litter on the stretch of the A1 in South Kesteven, but unfortunately the problem would still return the following day when new traffic flowed through the area. A safe and affordable mechanism needed to be used to tackle this issue.

·       This was an issue that the previous administration had looked into, through asking officers to consider what specialist companies were available to undertake the work.

·       17 SKDC members with wards adjacent to the A1 were contacted about the issue of littering, and 8 of them responded. A number of the responders were Independents, with a lower number responding from the SK Coalition Group.

·       The issue of littering on the South Kesteven stretch of the A1 was debated, and a way forward identified, at Environment Overview and Scrutiny held on 12 December 2023.

·       A previous report into debris on the verges had suggested that a figure north of £200,000 would be required to clear them. However, the figure of £60,000 would enable the Council to start a clearance. The figure of £60,000 was identified at the aforementioned Environment Overview and Scrutiny Committee. The instructions given to officers had not yet had the chance to be fulfilled; it might be better for Council to postpone any decision on a reserve until they were in possession of further information.

·       The safest options would be for a professional waste management company to come and in clear the litter. Ultimately, SKDC needed to lobby central government.

 

Note:  Councillor Rosemary Trollope-Bellew left the meeting.

 

As the amendment was related to the General Fund, a recorded vote was required.

 

For the amendment:          Councillors Matt Bailey, David Bellamy, Pam Bosworth, Helen Crawford, Richard Dixon-Warren, Ben Green, Graham Jeal, Gloria Johnson, Jane Kingman, Gareth Knight, Zoe Lane, Robert Leadenham, Paul Martin, Penny Milnes, Nick Robins, Penny Robins, Susan Sandall, Peter Stephens, Ian Stokes, Sarah Trotter, Mark Whittington, Jane Wood, Paul Wood, Sue Woolley (24).

 

Against the amendment:    Councillors Emma Baker, Ashley Baxter, Harrish Bisnauthsing, Pam Byrd, Richard Cleaver, Phil Dilks, Patsy Ellis, Paul Fellows, Phil Gadd, Tim Harrison, Anna Kelly, Philip Knowles, Virginia Moran, Charmaine Morgan, Chris Noon, Habib Rahman, Rhea Rayside, Max Sawyer, Ian Selby, Rob Shorrock, Lee Steptoe, Paul Stokes, Elvis Stooke, Murray Turner (24).

 

Abstain:                             Councillors Rhys Baker, Barry Dobson, Vanessa Smith (3).

 

As the vote was tied, the Chairman exercised her casting vote FOR the amendment, stating that she wished for there to be a start made on clearing the A1 litter. Therefore, the amendment was CARRIED and became part of the substantive Budget Proposal.

Debate then ensued on the substantive motion, where the following points were highlighted:

 

·       There was a high level of housing voids, for a number of different reasons. Currently, around £1 million was being lost due to voids through lost rent; having voids at a manageable level made a real impact on the housing register. £700,000 into the HRA was earmarked for voids.

·       Drainage levies were imposed on the Council; however Lincolnshire local authorities were lobbying the government on this issue, and there was the possibility of some grant funding in this area.

·       The Council was committing to the building of Council housing and also remained committed to the arts. This was evidenced through items such as the maintenance to the Guildhall Arts Centre roof in Grantham.

·       A strategy to replenish the reserves was not contained within the Budget. Investment income was declining to under £500,000, and the only ways of generating money available to the Council were increased Council Tax, fees and charges, government grants or cutting front line services.

·       Discretionary reserves would have reduced from £12 million to £8.2 million in this financial year and would reduce further in future years.

 

Note:  The meeting was extended until 5:30pm as it was approaching 3 hours in length.

 

·       The increase in Council House rents of 7% was less than the increases to the state pension, benefits and the rise in the National Minimum Wage.

·       There was a reserve movement of £1.2 million, with reserves being increased by a similar amount. At the same time local services were being maintained, and enhanced in some cases.

 

Note:  Councillor Anna Kelly and Barry Dobson left the meeting.

 

In summing up, the Leader of the Council and Portfolio Holder for Finance and Economic Development made the following points:

 

·       National and international issues, and the state of the leisure industry as a whole were having a knock-on impact on SKDC’s leisure centres. Some of the c£750,000 that had been granted to LeisureSK Limited so far was attributable to the rise in energy costs. The relationship with LeisureSK Limited was being reviewed with a focus on its governance.

·       14 years of austerity had meant that funding for local authorities across the country had suffered. Last year’s budget had balanced because of the Budget Stabilisation Reserves.

·       Whilst it would help in terms of the clear up of litter on the A1, the £60,000 planned for the debris would not fix the problem long-term.

 

A recorded vote on recommendations 1-10 of the motion was required as it related to the Council’s Budget; recommendations 11-18 did not require a recorded vote as they did not directly impact the Budget,

 

The results of the recorded vote were as follows:

 

For:              Councillors Emma Baker, Rhys Baker, Ashley Baxter, Harrish Bisnauthsing, Pam Byrd, Richard Cleaver, Phil Dilks, Patsy Ellis, Paul Fellows, Phil Gadd, Tim Harrison, Gloria Johnson, Philip Knowles, Virginia Moran, Charmaine Morgan, Chris Noon, Habib Rahman, Rhea Rayside, Max Sawyer, Ian Selby, Rob Shorrock, Vanessa Smith, Lee Steptoe, Paul Stokes, Elvis Stooke, Murray Turner (26)

 

Against:        Councillors Matt Bailey, David Bellamy, Pam Bosworth, Helen Crawford, Richard Dixon-Warren, Ben Green, Graham Jeal, Jane Kingman, Gareth Knight, Zoe Lane, Robert Leadenham, Paul Martin, Penny Milnes, Nick Robins, Penny Robins, Susan Sandall, Peter Stephens, Ian Stokes, Sarah Trotter, Mark Whittington, Jane Wood, Paul Wood, Sue Woolley (23)

 

Abstentions:  None

 

The remaining recommendations had been moved, seconded, and following the vote they were AGREED:

 

DECISION:

 

That Full Council:

 

1. Sets a General Fund budget requirement of £8.521m for 2024/2025 detailed at section 3 of the report and at Appendix A (inclusive of special expenses).

 

2. Approves a Council tax base of 49,710.0 for the South Kesteven District.

 

3. Notes the indicative base estimates for 2025/2026 and 2026/2027 as detailed at Appendix A of the report.

 

4. Approves the General Fund Capital programme for 2023/24 to 2025/26 detailed at section 6 of the report and shown at Appendix B. 

 

5. Approves the General Fund Capital Financing statement detailed at Appendix B of the report.

 

6. Approves the General Fund Capital Programme budget carry forward of £14.381m from 2022/2023, detailed at Appendix B.

 

7. Approves the movements in General Fund Revenue and Capital Reserves and balances detailed at section 8 of the report and shown at Appendix C 

 

8. Approves the Treasury Management Strategy Statement detailed at Section 10 of the report and provided at Appendix F 

 

9. Approves the Capital Strategy as detailed at Appendix G of the report and section 10.

 

10. Approves a reserve of £60,000 for clearing A1 verge sides – the “Clean the A1 Reserve”. This is to be transferred from the Local Priorities Reserve.

 

Note:  Resolutions 1-10 were subjected to a recorded vote – resolutions 11-21 were subjected to a normal vote via a show of hands.

 

11. Approves Housing Revenue Account (HRA) dwelling rent increases of 7.7% for 2024/25 in accordance with Government rent setting guidelines providing an average rent of £96.99 per week.

 

12. Approves an increase in HRA garage rents of 6.7%.

 

13. Approves an increase in shared ownership rents by 7.7%.

 

14. Approves the HRA Revenue Summary for the year 2024/25 and notes the indicative budgets for 2025/26 and 2026/27 (detailed at Appendix A).

 

15. Approves the Housing Capital Investment programme for 2024/25 to 2026/27 (detailed at section 6 of this report and at Appendix B.

 

16. Approves the HRA Capital Financing statement (detailed at Appendix B).

 

17. Approves the Housing Revenue Account Capital Investment Programme budget carry forward of £0.177m from 2023/24 (detailed at Appendix B).

 

18. Approves movements in HRA revenue and Capital Reserves and balances (detailed at section 8 of this report and shown at Appendix C).