Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 11, 2025

Purpose:

Content: 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.