Agenda item

Report of the Chief Finance Officer and Councillor Butcher on behalf of the Cabinet. Referred from Cabinet on 12 February 2025, incorporating the recommendations from the Cabinet reports on:

 

·       General Fund Revenue Budget 2025-26 and Capital Programme

·       Treasury Management and Prudential Indicators 2025-26, Capital Strategy and Investment Strategy

·       Housing Revenue Account (HRA) 2025-26

 

Please note that the Local Authorities (Standing Orders) (England) Amendment) Regulations 2014 requires named votes to be taken and recorded when setting the annual budget and council tax, including on substantive motions and on amendments.

Councillor Butcher moved and Councillor Holt seconded the recommendations set out in the agenda in relation to the Council Budget and setting of the Council Tax for 2025/26.  This incorporated recommendations from Cabinet regarding the General Fund Revenue Budget 2025-26 and Capital Programme, Treasury Management and Prudential Indicators 2025-26, Capital Strategy and Investment Strategy and Housing Revenue Account (HRA) 2025-26.

 

Councillor Small moved and Councillor Smart seconded the following amendment:

 

“To resolve to accept the budget proposals as set down in the officer recommendations subject to the following adjustments:

 

On Income:

 

Revenue budget (£90,000 saving) -

£25,000 saving from Tourism Department staffing budget

£25,000 saving from the communications budget

£4,000 financing saving from IT Capital Changes (with a £20,000 revenue saving for 26/27 onwards)

£36,000 additional income target for Airborne Sponsorships

 

On Capital Budget (-£80,000) -

Remove:

£50,000 from IT block allocation (30% of budget)

£30,000 from IT laptop refresh (30% of budget)

 

Additional Spending (+£90,000)

£40,000 to reinstate free downland parking for residents of the Borough

£50,000 Fun Pool reserve (available to GLL to cover any hypothetical loss operating the Fun Pool until the end of the 2025/26 financial year).”

 

Councillor Butcher (Portfolio Holder for Finance) thanked the Chief Finance Officer, deputy Chief Finance Officer and their team for preparing the budget and work throughout the year. He presented the budget and set out the context of the funding of Councils, choices to change the ways in which services were delivered, and the tripling of the costs of statutory housing and homelessness provision. He confirmed that the Government had granted additional borrowing in recognition of the tripling of that cost.  He highlighted the reduction in council debt by 19 million in the last year and compared this to debt held by other Councils. He then highlighted the plans for delivery for the Council for the year including on Council housing, on the seafront and on the Sovereign Centre.

 

Councillor Small (the Shadow Portfolio Holder for Finance) responded to the budget on behalf of the opposition, criticising the administration for the management of the budget and its level of debt and its record over the last few years.  He recognised that the Council had the very best homelessness team in the country but expressed concern over the level of debt.  

 

The Council then debated the proposals and the amendment together.

 

In accordance with legislation, the amendment proposed by Councillor Small was put to a recorded vote and lost as follows:

 

For (8): Councillors Ansell, Belsey, di Cara, Goodyear, Lamb, Shore, Small and Smart.

Against (17): Councillors Ballard, Bannister, Butcher, Collins, Dehdashty, Diplock, Ewbank, Holt, Morris, Murray, Parker, Rodohan, Sayers-Cooper, Shuttleworth, Swansborough, Vaughan and Williams.

Abstentions: none

 

The budget as proposed by Councillor Butcher and set out in the agenda papers was put to a recorded vote as follows and carried:

 

For (17): Councillors Ballard, Bannister, Butcher, Collins, Dehdashty, Diplock, Ewbank, Holt, Morris, Murray, Parker, Rodohan, Sayers-Cooper, Shuttleworth, Swansborough, Vaughan and Williams.

Against (8): Councillors Ansell, Belsey, di Cara, Goodyear, Lamb, Shore, Small and Smart.

Abstentions: none

 

RESOLVED (by 17 votes for, 8 against, 0 abstentions):

 

To approve:

 

1.     The recommendations as detailed in the reports from the Chief Finance Officer to Cabinet on 12 February 2025. 

 

Section 1.19 of the report confirmed that the Council had made a request to Ministry of Housing, Communities and Local Government (MHCLG) for a further round of capitalisation of £2m in 2025/26.  On 20 February 2025 MHCLG agreed in principle to allow the capitalisation request.

(i)           To approve the General Fund budget for 2025/26.  An increase in the Council Tax for Eastbourne Borough Council of 2.99% resulting in a total Band D charge for of £286.04 for 2025/26.

 

(ii)         To approve the rates of Fees and Charges as recommended by Cabinet and contained within Appendix 6 to the Cabinet report, to apply from 1 April 2025 and to implement changes to statutory fees and charges for services shown within Appendix 6 to the report as and when notified by Government, subject to a change to the following item contained with the Fees and Charges Schedule (Appendix 6 to the budget report) as follows:

 

·               Recovery Action - The Summons Cost Charge has been amended to £80.00, and the Liability Order Cost Charge has been amended to £15.00.

 

The change will marginally impact the total value of the General fund budget in 2025/26 but does not result in a change to the overall Council Tax Requirement set out in the general fund budget report.

 

(iii)        To approve the revised General Fund capital programme 2025/26.

 

(iv)       To note the Section 151 Officer’s sign off as outlined in the Cabinet Report and at Appendix 1.

 

(v)         To approve the Treasury Management Strategy and Annual Investment Strategy for 2025/26.

 

(vi)       To approve the Minimum Revenue Provision Policy Statement for 2025/26.

 

(vii)      To approve the Prudential and Treasury Indicators for 2025/26 to 2027/28.

 

(viii)     To approve the Capital Strategy 2024/25.

 

(ix)       To approve the Housing Revenue Account (HRA) income and expenditure proposals, and revised HRA budget for 2024/25 and the budget for 2025/26, rents and service charges and the HRA Capital Programme, including:

 

·            An increase of 2.7% to social and affordable rents (including Shared Ownership) with effect from 7 April 2025 in line with government policy.

·            That, when social rented supported accommodation properties are relet to new tenants, the applicable rent will be increased by 10% above target rent with effect from 7 April 2025 in line with government policy.

·            That when affordable rented properties are relet to new tenants, the applicable rent is reset to a maximum of 80% of market rent (inclusive of Service Charges) with effect from 7 April 2025 in line with government policy.

·            That the revised service charges as set out in paragraph 2.4 and appendix 3 of the Cabinet Report are implemented with effect from 7 April 2025.

·            That garage rents are increased by 10% with effect from 7 April 2025.

·            To grant delegated authority to the Chief Executive, in consultation with the Cabinet Portfolio holder for Finance and Resources and the Chief Finance Officer to devolve the relevant Management Fee from now the former Eastbourne Homes Limited (EHL) to services inside the HRA.

·            To note that £2.227m of Major Works capital expenditure be profiled over 4 years between 2024/25 to 2027/28 is being 50% matched funded by grant, subject to government grant bids.  The government scheme aims to improve EPC ratings in HRA properties.

 

2.    That delegated authority is given to the Chief Finance Officer to amend the budget for any presentational changes ensuring the Council Tax Requirement at 6 below remains unchanged.

 

3.    That it be noted, that since the Cabinet meeting on 12 February the Business Rates return to the Government (NNDR1) has been finalised with no changes to the previous net budget assumptions.

 

4.    That consequent upon a General Fund budget of £10,303,104 and other matters, the basic amount (Band D) of Council Tax for the Borough Council's functions will be £286.04 (representing an increase of 2.99%) calculated as follows:

 

	£'000	£'000
Gross Expenditure:
General Fund		105,205
HRA		20,578
Business Rates Tariff payable and deficit		13,185
		138,968
Less Income:
Service Income	-107,865
Interest on HRA Balances	-113
Other Government Grants	-5,093
Business Rates income	-13,552
Additional EA/TA Funding	-2,000
Collection Fund Surplus (Council Tax)	-42
		-128,665
COUNCIL TAX REQUIREMENT		10,303
Band 'D' Council Tax		£286.04

 

The statutory resolutions relating to this matter are given at paragraphs 5 and 6 below.

 

5.    That it be noted that at its meeting on 11 December 2022 the Cabinet agreed the Council Tax Base of 36,019.8 for Band ‘D’ equivalent properties for the year 2025/26 (Item T in the formula in section 31B of the Local Government Finance Act 1992, as amended).

 

6.    Calculate that the Council Tax requirement for the Council’s own purposes for 2025/26 as £10,303,104.

 

7.    That the following amounts be now calculated by the Council for the year 2024/25 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended:

 

(a)	£138,967,773	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.
(b)	£128,664,669	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£10,303,104	being the amount by which the aggregate at 5(a) above exceeds the aggregate at 5(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).
(d)	£286.04	being the amount at 6(c) above (Item R), all divided by Item T (5 above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including local precepts).

 

8.    To note that East Sussex County Council, the Sussex Police and Crime Commissioner and the East Sussex Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992, as amended, for each category of dwellings in the Council’s area as indicated in the table below.

 

9.    That the Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, as amended, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2025/26 for each of the categories of dwellings.

 

COUNCIL TAX 2025/26 – BY AREA AND VALUATION BAND

 

MAYOR PRECEPTOR	Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H
	£	£	£	£	£	£	£	£
East Sussex Fire Authority (ESFA)	74.99	87.49	99.99	112.49	137.49	162.49	187.48	224.98
Sussex Police and Crime Commissioner (SPCC)	177.94	207.60	237.25	266.91	326.22	385.54	444.85	533.82
East Sussex County Council (ESCC)	1,244.70	1,452.15	1,659.60	1,867.05	2,281.95	2,696.85	3,111.75	3,734.10
Eastbourne Borough Council	190.69	222.48	254.26	286.04	349.60	413.17	476.73	572.08
Total Council Tax Requirement	1,688.32	1,969.72	2,251.10	2,532.49	3,095.26	3,658.05	4,220.81	5,064.98

 

10.  Determine that the Council’s basic amount of Council Tax for 2025/26 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, as amended.

 

11.As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2025/26 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992, as amended.