Agenda item

To present the Council’s Revenue Budget for 2024/25, the budget reduction requirementand theAdministration’s budgetproposals for 2024/25including Council Tax intentions. The report also provides a forecast of the 2024/25 position and the financial forecasts for the remainder of the MTFS period, 2025/26 through to 2028/29.

 

Consideration was given to a report of the Director of Finance which provide the Overview and Scrutiny Committee with the budget reduction requirement and the Administration’s budget proposals for 2024/25 and a forecast of the 2025/26 position having regard to the Provisional Local Government Finance Settlement (PLGFS) published on 18 December 2023. The report also presents the financial forecasts for the remainder of the Medium Term Financial Strategy (MTFS) period 2025/26 to 2028/29.

 

It was reported that the starting point for preparing the 2024/25 revenue budget estimates is the underlying base budget of £275.5m. The 2023/24 revenue budget forecast outturn position highlights a current unfavourable projected variance of £16.2m; which will need to be financed from reserves. This is in addition to the general contribution from reserves of £10.8m towards the 2023/24 budget approved by Council in March 2023, plus contributions from other earmarked reserves for specific projects/initiatives of some £7m. This means the total contribution from reserves in 2023/24 will be some £34m: a situation that is not sustainable and which has significantly reduced the financial resilience of the council.

 

A range of expenditure pressures had contributed to the budget gap. The main pressures arise from pay, expenditure on Council buildings, increased demand and prices for Children’s Social Care service provision and an increased demand for temporary accommodation.

 

The report advised that the Council Tax position for 2024/25, was:

 

-       The Council Tax Base is 59,380, up from 58,500 in 2023/24 and broadly in line with the position assumed in March 2023.

-       A 2.99% increase in general purposes Council Tax increase is proposed together with a 2% increase for the Adult Social Care Precept.

-       An increase of 4.99% would not require a Council Tax referendum as it would be within the referendum criteria issued by the Government in the PLGFS.

-       The Council proposes to continue to provide no Council Tax Empty Property Discount and increase the Empty Property Premium from 1st April 2025.

-       Total Council Tax to be generated for use by the Council based on the Tax Base and the 4.99% increase (including the adult care social precept) is £116.2m in 2024/25.

-       No adjustment has been made to Council Tax levels for precepting Authorities or Parish Councils. Respective Council Tax levels for 2024/25 will be confirmed during January or February 2024.

 

Having regard to the proposed increase in Council Tax, Section 14 of the report presented the Administration’s approach to balancing the budget for 2024/25 via the budget reduction process. There are a total of 34 proposals presented in accordance with Political Portfolios. These are expected to deliver savings totalling £11.0m and impact approximately 90 FTEs in 2024/25. The proposals would also have an impact on 2025/26 of £4.8m. The proposals were presented in summary at Appendix 4 and in detail at Appendix 5 of the report.

 

Assuming approval of the 2024/25 budget reduction proposals and taking into account the impact of one-off budget reduction proposals, the budget reduction requirement for 2024/25 reduces to £9.7m and 2025/26 to £11.5m.

 

The Committee examined the budget reduction proposals.

 

The Leader of the Council and Cabinet Member for Reform and Regeneration and The Director of Finance were in attendance to introduce the following proposals:

 

PEG-BR1-701 Capitalisation of Staffing Costs in Project

PEG-BR1-729 Catering Service Review

COR-BR1-731 Senior Leadership Team

COR-BR1-732 Communications and Research Service Redesign

 

Referring to a question as to whether proposed changes to the Senior Leadership team would affect service delivery Members were informed that the Chief Executive believed that a flatter management structure would not affect service delivery.

 

The Cabinet Member for Finance & Corporate Resources was in attendance to introduce the following proposals:

 

COR-BR1-709 Efficiencies in Support services.

COR-BR1-710 Exceptional Hardship Payment Scheme

COR-BR1-711 Review of financial support and advice services

COR-BR1-712 Reduction in Staff - ICT

COR-BR1-713 Reduction in IT Application Services & Licensing

COR-BR1-714 Reduction in Mobile Phone Savings

COR-BR1-730 Centralisation of Business Intelligence functions

COR-BR1-733 Reduction of corporate funding for Chief Executive Apprenticeships Programme

COR-BR1-734 Introduction of a Vacancy Factor

 

The Cabinet Member for Health & Social Care was in attendance to introduce the following proposals:

 

ASC-BR1-715 Commissioning and Contracts

ASC-BR1-716 Operational restructure

ASC-BR1-717 Focussed Transitions Team – invest to save

ASC-BR1-718 Assistive Technology

ASC-BR1-719 Operating Model Implementation

PHT-BR1-720 Reduce funding for sexual health provision PHT-BR1-721 Public Health Team

 

In response to questions regarding the potential

 

 

The Deputy Leader and Cabinet Member for Children and Young People was in attendance to introduce the following proposals:

 

CHS-BR1-706 Social Work and Children’s Services Integration CHS-BR1-707 Children’s Safeguarding

CHS-BR1-708 Social Work Services

 

In response to Members questions regarding whether a reduction in the number of posts would be detrimental to service delivery Members were informed that a greater emphasis on early intervention and prevention would result in improved services.

 

Members also welcomed the opening of new children’s homes in the district which would provide a better experience for children and reduce the costs associated with out of district placements. The Delivery Board would be monitoring the delivery of the children’s homes.

 

 

The Cabinet Member for Education & Skills was in attendance to introduce the following proposals:

 

CHS-BR1-704 Home to School

CHS-BR1-705 Staffing and Dedicated Schools Grant

 

The Cabinet Member for Neighbourhoods was in attendance to introduce the following proposals:

 

PEG-BR1-723 Public Protection Service Review

PEG-BR1-724 Environmental Services - Service Delivery Changes to Parks and Cleansing

PEG-BR1-725 Highways & Engineering Service Review

 

The Leader ( on behalf of  Cabinet Member for Housing & Licensing) was in attendance to introduce the following proposal:

 

PEG-BR1-722 Strategic Planning and Information - Service Restructure

 

The Cabinet Member for Communities & Culture was in attendance to introduce the following proposals:

 

COM-BR1-702 Priority Programme

COM-BR1-703 District Team re-organisation

 

The Cabinet Member for Business, Employment & Enterprise was in attendance to introduce the following proposals:

 

PEG-BR1-726 Get Oldham Working Service Restructure

PEG-BR1-727 Get Oldham Working Delivery Model

PEG-BR1-728 Strategic Investment - Reduced account management

 

With regard to a Members comments regarding Commissioning and Contacts Members were informed that it was no longer possible  for the Council to fund services which were the responsibility of other providers.

 

RESOLVED that that the following recommendations be accepted and commended to Cabinet:

 

1. The policy landscape and context in which the Council is setting its revenue budget for 2024/25;

 

2. The financial forecasts for 2024/25 and 2025/26 having regard to the Provisional Local Government Finance Settlement and associated funding announcements;

 

3. The Flexible Use of Capital Receipts at a value of £2.6m for 2024/25 and 2025/26;

 

4. A proposed overall 2024/25 Council Tax increase of 4.99% for Oldham Council services (2.99% for general purposes and 2% Adult Social Care Precept) resulting in the charges set out at Table 12 of the report;

 

5. To approve the introduction of a 100% Council Tax Premium to be levied on empty properties and second homes from 1st April 2025 as set out in paragraph 9.34

 

6. The 2024/25 Budget Reduction proposals at a value of £11.0m with a further £4.8m for 2025/26;

 

 

7. The proposed use of £10.8m of reserves to balance the 2024/25 budget;

 

8. The proposal to draw on the Collection Fund for major preceptors of £137.0m for Borough Wide services and £116.2 m for Council services (subject to confirmation);

 

9. The proposed net revenue expenditure budget for 2024/25 for the Council set at £287.027m;

 

10. The proposed fees and charges as set out in the schedule included at Appendix 8;

 

11. The level of balances supporting the 2024/25 budget of £19.8m underpinned by the agreed policy on Earmarked Reserves;

 

12. The draft pay policy statement included at Appendix 10;

 

13. The delegation to the Cabinet Member for Finance and Resources and the Director of Finance to make a final decision on the feasibility of a pensions pre-payment if it represents value for money to the Council (Section 6.2-n).