The Strategy and Resources Committee of Stroud Council met on Thursday 6 February 2025, approving recommendations for the Council Tax Support Scheme for 2025-26 and the Capital Strategy. The committee also discussed the annual procurement and contract management update, including a light-touch review of the Social Value Policy and revised Contract and Procurement Procedure Rules, and received updates on the Canal Project and budget monitoring.

Annual Procurement and Contract Management Update

The committee received an update on procurement and contract management, noting the approval of amendments to the Social Value Policy and the revised Contract and Procurement Procedure Rules to align with the new Procurement Act. The Social Value Policy, first approved in October 2021, requires social value requirements to be included in procurements valued over £75,000. Between April 2023 and November 2024, 21 contracts with a total value of £28.6 million were let, generating £3.4 million in social value, representing 12.23% of the total contract value. The committee noted that a full review of the Social Value Policy is planned for 2025. The committee also noted the revised Contract and Procurement Procedure Rules, which have been updated to reflect the requirements of the new Procurement Act, with a go-live date of 24 February 2025.

Council Tax Support Scheme 2025-26

The committee recommended to Council the adoption of the Council Tax Support Scheme for 2025-26. The scheme will continue to provide up to 100% support for working-age claimants, mirroring the existing criteria and avoiding changes that would reduce support during the cost-of-living crisis. Pensioner claimants are protected from changes, with their scheme remaining largely the same. The scheme will continue to use the default government figures for applicable amounts and will maintain the administrative simplification of ignoring income changes of £10 or less per week.

Capital Strategy

The committee recommended to Council the approval of the Stroud District Council Capital Strategy. This strategy outlines the Council's principles for developing and financing its capital programme, ensuring alignment with Council Plan priorities such as Environment, Climate and Nature; Local Economy; Communities and Wellbeing; Housing; and Working for our Communities. The strategy emphasizes that capital investment should support strategic priorities, be affordable, and deliverable, with a focus on external funding sources before considering borrowing.

Budget Monitoring Report Q2 2024/25

The committee received the Q2 budget monitoring report, which indicated a projected net revenue overspend of £493,000 for the General Fund. This overspend is primarily due to a reduction in planning application fee income and increased costs for temporary accommodation. The Housing Revenue Account (HRA) is forecast to have an underspend of £1.534 million, largely due to higher rental income and underspends in repairs and maintenance. The capital programme shows a projected spend of £33.572 million against a budget of £33.321 million. The committee noted these forecasts and approved the write-off of £251,535.95 in irrecoverable Business Rates debt.

Housing Revenue Account (HRA) Budgets and Medium Term Financial Plan

The committee reviewed the revised HRA revenue budget for 2024/25 and the proposed original budget for 2025/26, along with the HRA Medium Term Financial Plan (MTFP) for 2024/25 to 2028/29. Recommendations included approving a 2.7% increase in social and affordable rents and garage rents, aligning with national guidance. Service charges for Independent Living and district heating systems will vary by scheme, with some seeing reductions. The HRA Capital Programme for 2024/25 to 2028/29 was also presented for inclusion in the Council's Capital Programme. The MTFP shows a significantly improved financial position due to updated assumptions on rents, Right to Buy sales, and reduced pension contributions.

General Fund Budget 2025/26, Capital Programme and Medium-Term Financial Plan

The committee recommended to Council the approval of the updated Medium Term Financial Plan (MTFP), a 2.99% increase in Council Tax, and the Capital Programme. The MTFP reflects a challenging financial outlook, with a 0% increase in Core Spending Power and unfunded inflationary pressures. The proposed Council Tax increase of 2.99% (£7.06 for a Band D property) was recommended to help balance the budget. The Capital Programme includes significant investment in new homes, major works, and decarbonisation projects. The committee also recommended approving planned changes to reserves and the fees and charges policy.

Council Tax - Second Homes Premium and Empty Homes Premium

The committee noted the upcoming introduction of a Council Tax premium on second homes from 01 April 2025 and the amendment to the empty homes premium to apply after one year, also from 01 April 2025. The committee recommended to Council the adoption of mandatory exceptions to these premiums, as prescribed by government regulations, which exclude certain types of dwellings from the premium charges.

Canal Project Update

The committee was updated on the progress of the Canal Project, noting that while the revised programme of work for Phase 1B is on track for completion by December 2025 within secured funding, a significant funding gap of approximately £13 million remains to fully reconnect the canal to the national network at Saul Junction. The committee resolved to authorise the drawdown of £1 million from the Capital Reserve, previously allocated in November 2022, to support the project's revised programme and strengthen the Council's position in negotiating further funding.

Fair Pay and Senior Pay Policy Statement 2024/25

The committee recommended to Council the approval of the Fair Pay and Senior Pay Policy Statement for 2024/25. This statement, required by the Localism Act 2011, outlines the Council's approach to senior pay, including the pay multiple between the highest and lowest paid employees, which remains well within government guidelines. The statement also details the remuneration of senior officers, noting that there are no bonuses or performance-related payments, and confirms the Council's commitment to paying the Living Wage Foundation rate to its lowest paid staff.

Community Infrastructure Levy (CIL) - Spending Allocations for 2025/2026

The committee resolved to note the Community Infrastructure Levy (CIL) project funding decisions made by the Environment Committee and approve the financial implications of those decisions. The CIL funding will be used to invest in two feasibility studies focused on healthcare facilities for residents in Cam Parish. The committee acknowledged the positive impact of CIL funds in achieving council objectives and noted the cooperative partnership working with organisations such as the NHS and Gloucestershire County Council.

Draft Council Plan 2025-2029

The committee recommended to Council the adoption of the draft Council Plan 2025-2029. This plan sets out the council’s priorities and objectives for the next four years, focusing on five key areas: Environment, Climate and Nature; Communities and Wellbeing; Local Economy; Housing; and Working for our Communities. The plan was developed through extensive consultation with councillors, officers, stakeholders, and the public, with feedback incorporated into the final document and accompanying Delivery Plan.

Work Programme

The committee noted the update to the Work Programme. Key items to be considered in future meetings include reports on Stroud District Council's Community Wealth Building, the Economic Strategy with an employment and skills focus, updated policy changes, a Green Skills Strategy update, renewable energy options, and potential SEDF bids. The committee also noted that the delivery strategy for Bath Place, Cheapside, and Station car parks would be moved from the February to the April committee meeting.