Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 11, 2025

Purpose:

Content: The Cabinet considered a report of the Director of Corporate Services and Chief Finance Officer, which outlined the proposed Revenue Budget, Capital Programme and Council Tax for 2025/26 and the provisional budget for 2026/27 and 2027/28, for recommendation to Budget Council on 26th February 2025. The information contained in the report was subject to the approval of the Mayor of Greater Manchester Council Tax precepts for 2025/26.   The report also outlined the Medium Term Financial Strategy 2025/26 to 2029/30. The Medium Term Financial Strategy (MTFS) provided the latest budget position for the Council, set out the key financial challenges and issues which would be faced over the period, and provided details of the assumptions and estimates which underpinned the budget. The strategy also took account of the latest known developments both regional and at a local level.   The report author was in attendance to present the information and to address the questions and the comments of the Cabinet Members and of the Leader of the Conservative Group.   Additionally, the report author provided an update on the Township funding which was being set at £8,000 per ward instead of £10,000 as outlined in the report.   Cabinet Members noted the update. The Leader observed that £8,000 per ward was additional funding to what was already being allocated to Townships on annual basis.   Furthermore, based on the Budget position outlined in the report, the Cabinet agreed to withdraw the proposed efficiencies/savings relating to the Bowling Greens and to the Middleton Crematorium.   Resolved: 1.    That the proposed revenue budget position outlined in Appendix 1 of the report, based on a budget requirement of £331.642m for 2025/26 be considered and recommended to Budget Council for approval; 2.    That, subject to confirmation of the Mayor of Greater Manchester precepts, a)    A Council Tax for district purposes of £2,058.84 for Band D properties (4.99% increase) for 2025/26, be considered and recommended to Budget Council for approval; b)    A Council Tax (including precepts) of £2,458.09 for Band D properties (5.49% increase) be considered and recommended to Budget Council for approval; 3.    That  the proposed Capital Programme for 2025/26 to 2029/30 as detailed at Appendix 4 of the report, noting that some of the assumed external funding included in the programme was still subject to clarification from Government and in some cases may involve bids for funding, be considered and recommended to Budget Council for approval. It be noted that all approvals were subject to confirmation of funding allocations; 4.    That the updated Medium Term Financial Strategy 2025/26 to 2029/30, as detailed in Appendix 6 of the report be considered and recommended to Budget Council for approval; 5.    That the updated Pay Policy statement, as detailed in Appendix 7 of the report, be considered and recommended to Budget Council for approval; 6.    That the updated Reserves Policy, as detailed in Appendix 8 of the report be considered and recommended to Budget Council for approval; 7.    That, based on the Budget position outlined in the report, the proposed efficiencies/savings relating to the Bowling Greens and to the Middleton Crematorium be withdrawn. It be noted that the outcome of the consultation on the remaining budget efficiencies/savings included in Appendix 9 of the report would be reported back to a future Cabinet and the proposed efficiencies/savings would be implemented subject to the outcome; 8.    That the decision regarding any changes to the final allocations for the Dedicated Schools Grant be delegated to the Director of Children’s Services in consultation with the Chief Finance Officer and the Cabinet Members for Children’s Services and Finance and Growth, and the Leader of the Council; 9.    That it be noted that the Council’s share of the forecast 2024/25 Collection Fund surplus was £4.929m. £2m would be transferred to the General Fund Reserve and £2.929m would be transferred to the Equalisation Reserve as part of the 2025/26 budget as detailed in section 5.1.4 of the report; 10. That the transfer of reserves to top-up the Transformation Reserve to £5m to enable delivery of the programme and savings forecasted within the MTFS as detailed in 4.9.5 of the report be noted; 11. That the creation of the Growth Reserve to support in year pressures in social care and housing as detailed in 4.9.4 of the report ne noted.   Reason for decision: Cabinet members were required to consider and recommend a balanced 2025/26 Revenue Budget to Budget Council, and provisional budgets for 2026/27 and 2027/28. The Council was required to set a balanced budget for 2025/26 by 11th March 2025.   The Revenue Budget and Medium Term Financial Strategy were key elements of the budget setting process.   Alternatives considered and rejected: The Council was legally obliged to set a balanced budget. The budget setting process was complex and had to be undertaken in a planned way, and numerous alternatives were considered in arriving at the proposals put forward in the report. It was equally important that assumptions used in the preparation of the budget were agreed, reasonable and consistently applied by all services.