Decision Maker: Council Special Meeting

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 26, 2025

Purpose:

Content: 1.1         Approved the Medium Term Financial Strategy 2025/26 to 2028/29 as set out in this report:   ·        that the borough element of council tax is raised by: o   2.00% adult social care precept o   2.99% main council tax rate ·        that a balanced budget is set for 2025/26   1.2         Noted the £46.7m of investment agreed by Cabinet (almost 70% of which is social care related), to include at least (Section 9): ·        £20m for Health and Adults Services ·        £12m for Children’s Services ·        £1m for Universal Credit migration pressure ·        £200k on-going new investment decision to provide a further Emotional Wellbeing Hub, in support of Our Greenwich (Section 9.13).   1.3         Noted the £1.0m one-off funding of Carbon Offset Section 106 for eligible expenditure from the “Together for Greenwich: Co-operation for the Future” agreed by Cabinet (Section 9.14).   1.4     Noted the use the one-off surplus distribution of £0.7m from the national Business Rates Levy to support operation of the Greenwich Supports Discretionary Council Tax Hardship Fund and revenues collection agreed by Cabinet (Section 10.10).   1.5     Noted £1.2m of new savings / income proposals for 2025/26 increasing to £2.1m in 2028/29 (Section 10) agreed by Cabinet.   1.6     Noted the changes to the Local Council Tax Support scheme, considered by Cabinet and Council on 29 January 2025 and the impact upon the MTFS (Section 10.8).   1.7     Noted the new fees and charges for 2025/26 (Appendix C) agreed by Cabinet.   1.8     Noted that the impact of over a decade of government austerity has led to the council facing around £150m of pressures over that period, when combined with huge demographic demands and price inflation it is challenging to set a balanced budget for each financial year. (Section 4).   1.9     Noted the number of properties rated for council tax has grown by less than 1% year on year for the fourth consecutive year. (Section 8.22).   1.10   Noted the impact of the Government’s Financial Settlement and related developments around the MTFS (Section 8):   ·        the Chancellor announced a one-year Settlement only for 2025/26, which allows certainty for a one-year period ·        a continuation of the break from the London wide Business Rates pooling arrangement for 2025/26 ·        the Schools funding position   1.11   Noted the schedule of fees and charges rates for 2025/26 (Appendix D) being agreed under delegated authority.   1.12   Noted budgetary impact of reprofiling previously agreed income / savings proposals of £2.4m in 2025/26. (Section 9.10).   1.13   Noted a forecasted overall resourcing gap for 2026/27 in excess of £40m, rising to almost £100m by 2028/29 (Section 15), before future government grant and council tax decisions.   1.14   Noted the potentially significant financial risks to the MTFS going forward due to the uncertainty from proposed funding reform from 2026/27 onwards (Section 14).   1.15   Noted the outcome of the results of the public consultation which closed on 24 December 2024 (Section 17).   1.16   Noted that the MTFS is a continuous process and will be updated in Summer 2025.   1.17   Noted that it shall have regard to the s151 / Chief Finance Officer’s statement in Section 16, as required under s25(2) of the Local Government Act 2003, when making decisions in this report.   1.18   Noted the comments of the Overview and Scrutiny Committee of its meeting on 30 January 2025 (Appendix E).   1.19   Noted that Cabinet on 17 February 2025 in recommending the budget to Council, have noted some and agreed others, of the Overview and Scrutiny recommendations set out in Appendix E. The Cabinet Member for Finance Resources and Social value confirmed that the recommendations by the Overview and Scrutiny Committee in respect of the Children’s and Youth Play Services Review had been agreed by Cabinet and further that the Leader and Cabinet Member for Equality, Culture and Communities had agreed to meet with some residents in relation to the proposals.