Purpose

Cabinet is recommend
to recommend to Full Council that the projected budget for 2025/26
is approved
 

Content

Cabinet:

(1)         
recommended to Full Council that the
Waltham Forest basic amount of council tax, including the levying
bodies, will be increased by 2.99% in 2025/26;

(2)         
recommended to Full Council that the
2% permitted increase for Adult Social Care will be applied
bringing the total increase to 4.99% and resulting in a council tax
of £1,787.27 per Band D property in
2025/26;

(3)         
noted that the element of council tax
charged by the Greater London Authority will be £490.38 per
Band D property in 2025/26 which reflects an increase of
£18.98 (4.03%);

(4)         
recommended to Full Council that the
overall council tax to be set for 2025/26 will be £2,277.65
per Band D property, which represents an overall increase of
4.78%;

(5)         
recommended to Full Council that the
projected budget (as set out in Appendix 1 of the report) for
2025/26 of £522.631 million is approved;

(6)         
considered and noted the whole of the
Strategic Director of Resources report made under Section 25 of the
Local Government Act 2003 as set out in Appendix 2 of the report
and, in particular, their determination in the Financial
Implications of this report on “the robustness of the
estimates made for the purposes of the calculations, and the
adequacy of the proposed financial reserves”;

(7)         
noted the amount of 82,783 (an
increase of 1,461 over the previous year), as the Council Tax Base
for the Council for 2025/26, in accordance with Regulation 3 of the
Local Authorities (Calculation of Council Tax Base) Regulations
1992 made under the Local Government Finance Act 1992 (as
amended);

(8)         
recommended to Full Council that the following amounts
to be approved for 2025/26 in accordance with sections 31 to 36 of
the Local Government Act 1992, as amended (the
Act);

(a) 
Gross Expenditure

£1,027.564 million –
being the aggregate of the amounts which the council estimates for
the items in Sections 31A (2) of the Act;

(b) 
Gross Income

£879.608 million – being the aggregate
of the amounts which the council estimates for the items in
Sections 31A (3) of the Act;

(c) 
Net Expenditure

£147.956 million – being the amounts by
which the aggregate at 2.1.8.1, exceeds the aggregate ate 2.1.8.2
above, calculated by the Council in accordance with Section 31A (4)
pf the Act as its council tax requirement for the year;

(d) 
LBWF Basic Amount of Council Tax including the
Adult Social Care Precept

£1,787.27 – being the amount at 2.1.8.3
above, divided by 82,783 (the Council Tax Base), calculated by the
Council in accordance with Section 31B(1) of the Act, as the basic
amount of its council tax for the year and includes the Adult
Social Care Precept of £280.05;

(e) 
 Valuation
Bands

Band

 

   
A

   
B

   
C

   
D

   
E

   
F

   
G

   
H

Basic

£

 1,004.81

 1,172.28

 1,339.76

 1,507.22

 1,842.16

 2,177.09

 2,512.03

 3,014.44

Social Care

£

   
186.70

   
217.82

   
248.93

   
280.05

   
342.28

   
404.52

   
466.75

   
560.10

Total LBWF

£

 1,191.51

 1,390.10

 1,588.69

 1,787.27

 2,184.44

 2,581.61

 2,978.78

 3,574.54

Being the amounts given by multiplying the amount at
2.1.8.4 above by the number which, in the proportion set out in
Section 5(1) of the 1992 Act, is applicable to dwellings listed in
a particular valuation band, divided by the number which in that
proportion is applicable to dwellings listed in Valuation Band D,
calculated by the Council, in accordance with Section 36(1) of the
1992 Act, as the amounts to be taken into account for the year in
respect of categories of dwellings listed in different valuation
bands;

(f)  
noted that for 2025/26 the Greater
London Assembly (GLA) has stated that (with formal ratification on
25 February 2025) that the following amounts in precepts be issued
to the Council in accordance with Section 40 of the Local
Government Act 1992 for each of the categories of dwellings shown
below;

Band

 

   
A

   
B

   
C

   
D

   
E

   
F

   
G

   
H

Total

£

326.92

381.41

435.89

490.38

599.35

708.33

817.30

980.76

(g) 
recommended to Full Council, that,
having calculated the aggregate in each case of the amounts at
2.1.8.5 and 2.1.8.6 above, the Council, in accordance with Section
30(2) of the Local Government Finance Act 1992 sets the following
amounts of council tax for 2025/26 for each of the categories of
dwellings shown:

Band

A

B

C

D

E

F

G

H

Total

£

1,518.43

1,771.51

2,024.58

2,277.65

2,783.79

3,289.94

3,796.08

4,555.30

(h) 
noted that the relevant basic
amount of council tax for a Band D property (excluding precepts but
now including levies) for the financial year 2025/26 be
£1,787.27, which reflects a 2.99% increase, plus 2% Adult
Social Care precept permitted increase for 2025/26 and therefore
does not require a referendum;

(9)         
agreed that the Strategic Director of
Resources and the officers nominated by him be authorised to
finalise the necessary publicity as required by Section 38 of the
Local Government Finance Act 1992 and to promote the first day of
the month instalment dates, and the six date options within each
month for Direct Debit payers, as previously
agreed;

(10)      
noted that in order to ensure the
required period of notice is given, council taxpayers will be
requested to pay their instalments on the first of each month
commencing on 1 April 2025;

(11)      
agreed in accordance with the Council
Tax (Empty Dwellings) Act 2018 to continue to maintain the maximum
percentage allowed by current legislation for the empty
home’s premium from 1 April 2025;

(12)      
agreed in accordance with the
Levelling Up and Regeneration Act 2023 (Clause 76) to maintain a
premium of 100% on dwellings that have been empty for one year from
1 April 2025;

(13)      
agreed in accordance with the
Levelling Up and Regeneration Act 2023 (Clause 77) to charge a
premium of 100% on dwellings which are “substantially
furnished” but have no “resident” (e.g., second
homes) from 1 April 2025;

(14)      
agreed for the purposes of
calculating entitlement to Housing Benefit, any war disablement
pension, war widow’s or war widower’s pension which
would otherwise be treated as income for the purposes of
calculating entitlement to housing benefit should be disregarded in
its entirety;

(15)      
recommended to Full Council the
amended fees and charges for 2025/26 as shown in Appendix 6 of the
report;

(16)      
agreed the Capital Programme for
2024/25 to 2034/35 as set out in Appendix 10 of the
report;

(17)      
agreed the reserves strategy at
Appendix 7 of the report and noted that the Strategic Director of
Resources has delegated responsibility for the use of reserves
throughout the year;

(18)      
agreed the continuation of the eight
Borough Business rates pool for 2025/26; and

(19)      
reconfirmed that on winding up of the
Mears JV (More Homes Waltham Forest LLP) once any outstanding debt
financing relating to the assets has been cleared the Balance of
the Capital Return Allocation be transferred or paid to the London
Borough of Waltham Forest Pension Fund. This is required to be
reconfirmed annually within the budget report by the fund actuaries
noting the original decision was made in February 2019 Council
meeting.
 
Options & Alternatives
Considered

The Council has a legal duty to set a
balanced budget and to develop a financial strategy for the medium
term.  The revised MTFS sets out
potential challenges facing the Council in future
years.