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Salford City Council - Record of Decision (Cabinet)
I
Paul Dennett, City Mayor, in exercise of the powers contained
within the City Council Constitution do hereby approve the proposed Revenue
Budget for 2025/26 as set out in this report and refer it for
approval by Full Council on 26th February 2025. In doing so
I:   

1.   
Note and support the risk assessment of reserves and
assumptions made in preparing the revenue budget for 2025/26, and
accordingly approve a revenue budget of £394.386m.

2.   
Recommend that Full
Council approves the formal resolution as set
out in Appendix 2 of the report, that:

The
revenue estimates for 2025/26 as set out in this report be
approved.
The
council confirms the decision of the Chief Finance Officer on 7
January 2025 under delegated powers to approve the calculation of
78,626 as the council’s council tax base for the year 2025/26
(Item T in the formula in Section 31B (1) of the Local Government
Finance Act 1992, as amended).
The
Council confirms the action of the Chief Finance Officer (S151
officer) in approving a business rates estimate which shows
£115.012m as the council’s share of its retained
business rates and disregarded amounts for 2025/26.
The
following amounts be now calculated by the council for the year
2025/26 in accordance with Sections 31 to 36 of the Local
Government Finance Act 1992 (the Act):

a.   
£877,439,401 being the aggregate of the
amounts which the council estimates for the items set out in
Section 31A (2) of the Act representing the gross revenue budget of
the council.

b.   
£716,038,307 being the aggregate of the
amounts which the council estimates for the items set out in
Section 31A (3) of the Act.

c.   
£161,401,094 being the amount by which the
aggregate at (a) above exceeds the aggregate at (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 31A (4) of the Act).

d.   
£2,052.77 being the amount at (c) above,
divided by Item T ((2) above) calculated by the council, in
accordance with Section 31B (1) of the Act, as the basic amount of
its council tax for the year.
The Reasons are:
Under
the constitution, the full Council is responsible for approving the
budget and this is expected to take place on 26th February 2025.
The City Mayor is responsible for proposing a budget to the
Council.
Options considered and rejected were:
Not
applicable.
 
Assessment of Risk:
The
Council’s budget and financial position is a key Corporate
risk that has been highlighted as being high priority for
monitoring and reporting on the Corporate Risk Register. The
proposals in this report have sought to ensure adequate budget
provision for 2025/26 with a clear reporting of risks with the
budget strategy.
The source of funding is:
Not
applicable for this report.
 
Legal Advice obtained:
Supplied by Catherine Parkinson
– Interim City Solicitor & Monitoring Officer
 
The Local Government Finance
Act 1992 sets out what the Council has to base its budget
calculations on and requires the Council to set a balanced budget
for the following year by 11 March. Section 25 of the Local
Government Act 2003 requires the Council to have regard to the
advice of the Chief Finance Officer (S151 officer) as to the
robustness of the estimates made for the purposes of the
calculations and the adequacy of the proposed financial
reserves.
 
Although the calculation of the
council tax requirement and the formulation of plans and strategies
for control of the Council’s borrowing, investments, capital
expenditure and for determining the Council’s minimum reserve
position are executive functions, the approval of such plans and
strategies is a function reserved to full Council.
 
The process to be followed to
set the budget is therefore that the City Mayor and Cabinet
recommend a draft budget to Council for approval. If the majority
of Council does not approve the budget it will be referred back to
the City Mayor. The City Mayor will consider the comments of
Council and then present a further draft budget to Council, which
can only be rejected by a two thirds majority of
Council.
 
The financial position must be
closely monitored and members must satisfy themselves that
sufficient mechanisms are in place to ensure the delivery of
savings as well as to ensure that any new expenditure is contained
within the available resources.
 
In approving the budget,
members must also have regard to the Public Sector Equality Duty in
making their decision. Further information in respect of this duty
is set out earlier in this report.
 
As Monitoring Officer I have
been consulted in the preparation of this report and am satisfied
that the proposals set out in this report comply with the
constitutional and legal requirements for the budget setting
process
Financial Advice obtained:
This
report has been prepared by the council’s finance team in
consultation with strategic directors and heads of service, and
contains full financial implications around the budget, council tax
and housing rent setting.
 Procurement Advice obtained:
Supplied by: Anthony Hilton – Strategic Head of
Procurement.
The
procurement team will continue to work collaboratively with
stakeholders, service areas, suppliers and partner organisations to
deliver best value, service/budget efficiencies and improved
outcomes, ensuring that revenue budget savings delivered as part of
the Innovate program are captured, delivered and
reported.
HR Advice obtained:
Not applicable for this
report.
Climate Change Advice obtained:
Not applicable to this
report.
The following documents have been used to assist the decision
process:
Local
government finance settlement. Working papers held in the finance
division.
Contact officers:
Rachel
Rosewell: Telephone 0161607 8643 email:
rachel.rosewell@salford.gov.uk
Paul
Hutchings: Telephone 0161 793 2574 email:
paul.hutchings@salford.gov.uk
Tony
Thompstone: Telephone 0161 793 2016
email:tony.thompstone@salford.gov.uk
David
Mills (HRA):  Telephone: 0161 793 2858
e-mail: david.mills@salford.gov.uk
 
The
decision is not subject to call-in, in accordance with the
Decision-Making Procedure Rules.

Signed:            Paul
Dennett                   
Dated:       17.02.25                                               
                   City
Mayor
 

For Democratic
Services use only

This decision was
published on 17.02.25.                                            

This decision will
come into force with immediate effect.