Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: February 5, 2025

Purpose:

Content: Resolved:-   (1)          that approval is given to the Medium-Term Financial Strategy and Draft Budget 2025/26, and that this be submitted to Full Council on 25 February for consideration and approval with the following specific recommendations to Full Council, that:-   (2)          the Medium-Term Financial Strategy and all annexes set out in Appendix A, is approved, incorporating the following recommendations: a)            the results of the consultation exercise at Annex 1 be noted; b)            the change-log of financial movements in the Medium-Term Financial Plan at Annex 2 be noted; c)             the efficiency savings detailed in Annex 3 of the Medium-Term Financial Strategy is approved for inclusion in the General Fund base budget for 2025/26 and the Medium-Term Financial Plan for the financial years 2025/26 to 2029/30; d)            the risks associated with the Medium-Term Financial Plan as detailed at Annex 4 is noted; e)            the strategy on Flexible Use of Capital Receipts at Annex 5 to the report is approved, and delegated authority given to the Deputy Leader and Cabinet Member for Finance and Resources and Executive Director for Finance and Transformation to make any submissions to the Ministry of Housing, Communities and Local Government for application; f)              the Fees and Charges for 2025/26 is approved, as set out within Annex 6.   (3)          the General Fund net budget of £363.804m for 2025/26, as detailed at Annex 7 of the Medium-Term Financial Strategy is recommended to Full Council for approval, including the financial implications of: a)            a proposed Council Tax increase of 4.99% for the Sandwell MBC element resulting in a Band D charge of £1,823.76; b)             revised Local Council Tax Reduction Scheme Policy as approved by Full Council on 10 December 2024; c)             increased Council Taxbase of 80,364.3 as approved by Full Council on 10 December 2024.   (4)          the analysis of Council Tax amounts by Band at Annex 8 is noted;   (5)          the application of the Dedicated Schools Grant as set out at Annex 9 is approved, including the following recommendations to: a)            adopt the grant allocation by block per Table 1; b)            agree the amount of funding available for distribution from the Schools Block at £373.004 as set out at Table 2 including: ·      Set aside of £1.000m as Pupil Growth contingency; ·      set aside of £0.840m as Falling Rolls Funding contingency; ·      transfer of £0.522m to Central Schools Services Block to fund attendance service.   (6)           in relation to the General Fund Capital Programme: a)            the budget allocation of £102.432m for 2025/26, and of £343.120m for the programme to 2029/30, as set out at Annex 10, is approved; b)            it is noted that it is assumed that the ‘pipeline’ projects, as detailed in Annex 10, will be brought forward for appraisal in due course and will be added into the programme following the completion of due process as prescribed by the Council’s Financial Regulations.   (7)          that the Housing Revenue Account and associated Capital Programme as set out at Annex 11 is approved, including: a)            the Housing Revenue Account Revenue Budget for 2025/26 as set out in Table 2 of the report, including the draw of £3.336m from Housing Revenue Account earmarked reserves; b)            the Housing Revenue Account Capital Programme budget of £78.401m for 2025/26 as set out in Table 3 of the report submitted; c)             the 30 Year Housing Revenue Account Business Plan as set out in sub-annex 1.   (8)          the Reserves Strategy at Annex 12 to the Medium-Term Financial Strategy is approved, and delegated authority is given to the Section 151 Officer to make transfers to or from reserves during the financial year to ensure that adequate reserves are maintained and adjusted when spend from earmarked reserves is required;   (9)          the Capital Strategy and Capital Financing Strategy at Annex 13 and 14 be approved;   (10)      the Investment Strategy at Annex 15 is approved;   (11)    that the Treasury Management Strategy at Annex 16 is approved, including: a)            the Borrowing and Investment Strategies; b)            The Minimum Revenue Provision Policy Statement; c)             The Treasury and Prudential Indicators as set out within the report and summarised at sub-annex 6; d)            Forecast new borrowing requirement of £118m.   (12)      the Revenues and Benefits Policy Framework at Annex 17 is endorsed;   (13)      delegate authority is given to the Section 151 Officer and Monitoring Officer to make any financial corrections or amendments to the Medium-Term Financial Strategy and annexes as may be required in the final preparation of papers for Full Council on 25 February 2025, and, subject to approval by Full Council of the Medium-Term Financial Strategy and budget recommendation, to make any in-year financial corrections, technical adjustments or virements in the event of variations in indicated funding allocation made by Government, subject to these being allocated in accordance with the principles set out in this report; and   (14)      delegated authority be given to the Section 151 Officer adjust the funding sources applied to the Capital Programmes during the year to maximise flexibility in use of capital resources and minimise borrowing costs where possible.