Purpose

The annual budget report sets out the
recommendation for Council Tax setting for 2025/26, the overall
budget position for 2025/26 and estimates underpinning financial
planning over the medium-term.

Decision

Cabinet approved the
following recommendations to Full Council for consideration at its
meeting on 5 March 2025:

·      
That the Council Tax for a Band D be agreed at £526.80 for
2025/26

·      
That subject to the consideration of the previous recommendation,
the council tax for the City of Westminster, excluding the
Montpelier Square area and Queen’s Park Community Council,
for the year ending 31 March 2025, be as specified in the Council
Tax Resolution in Appendix 1

·      
That the Precepts and Special Expenses be as also specified in
Appendix 1 for properties in Montpelier Square and the
Queen’s Park Community Council

·      
That the formal resolution for 2025/26 attached at Appendix 1
including the council tax requirement of £74.578m be
agreed

·      
Note the proposed Greater London Authority precept (Band D) of
£490.38, an increase of £18.98 in the adjusted Band D
precept

·      
That the Council continues the Westminster Community Contribution
scheme to allow residents in the City to voluntarily contribute
towards supporting discretionary services that support the four
priorities helping young people reach their full potential,
including staying safe, contributing positively to their community
and developing longer term skills; providing extra support for
people who find themselves sleeping on Westminster’s street;
tackling social isolation and loneliness and promoting social
inclusion.

·      
Note the views of the Scrutiny Budget Task Group set out in
Appendix 2

·      
That the proposed General Fund net budget requirement of
£213.426m summarised in Appendix 3 is approved

·      
That the savings, pressures and investments for 2025/26 to 2027/28
set out in Appendix 4, 5 and 6, are approved

·      
That the Equality Impact Assessments included in Appendix 7 are
noted to inform the consideration of the budget

·      
Note the Housing Revenue Account (HRA) Business Plan 2025/26 and 30 Year Housing Investment Plan
presented concurrently to Cabinet on 17 February 2025 that
recommends the HRA budget and rent levels for 2025/26

·      
Note the Dedicated Schools Grant (DSG) allocations totalling
£202.405m and agree that the schools block of £137.587m
is allocated to schools using the local formula agreed by
Westminster Schools Forum which moves 30% closer to the National
Funding Formula factor values and meets DfE requirements

·      
That the Executive Director of Finance and Resources be delegated
responsibility for any technical adjustments required to be made to
the budget.

·      
That the cost of inflation, pressures and contingencies be issued
to service budgets if and when the need
materialises, to the limits contained within the budget gap
calculations.

·      
That the views of consultees and consultation approach, as set out
in the relevant section be considered by Council.

·      
Note the Capital Strategy 2025/26 to 2029/30, forecast position for
2024/25 and future years’ forecasts summarised up to 2038/39
report also presented to Cabinet on 17 February 2025 that
recommends the Council’s capital programme and financing

·      
Agree the reserves policy as set out in section 9

·      
Note the opinion of the Section 151 Officer with regards to the
robustness of the budget process, the estimates underpinning the
budget and the adequacy of the reserves as set out in Appendix 8 as
required by S25 of the Local Government Act 2003

·      
Note the Treasury Management Strategy for 2025/26 including the
annual investment strategy, borrowing limits and prudential
indicators summarised in this report and set out detail in a
concurrent report on this agenda.

·      
Note the 2025/26 Integrated Investment Framework report also
concurrently on this agenda, which sets out the policies and
framework for future investment decisions for the Council.
 
Reasons for Decision: The report brings
together the Council’s business and financial planning and
looks forward over the next three years to set out how it will
support the Council’s objectives under the Fairer Westminster
strategy, supported by a medium-term financial plan and balanced
budget for 2025/26. The preparation of the budget is the final
stage of the annual business planning cycle leading to the approval
for the council tax for the forthcoming financial year and meets
the statutory requirement to set a balanced budget and submit a
budget return to central government.