Decision details

The Executive RECOMMENDED to Full Council that the Medium Term Financial Strategy and associated Revenue Budget Estimates covering the period 2024/25 to 2027/28 as set out at the updated Annex A to the agenda report and its appendices, be agreed, including:

(i)     approving the Revenue Budget Estimates covering the period 2024/25 to 2027/28 by:

a.            agreeing the 2024/25 budget estimates giving a net cost of services revenue budget for the Council of £17.347 million as shown in Appendix 1 to the Medium Term Financial Strategy;

b.            agreeing the unavoidable service pressures and budget growth of £4.723 million shown in Appendix 1 and in more detail in Appendix 1-1 to the Medium Term Financial Strategy;

c.            agreeing the revenue efficiencies of £4.525 million shown in Appendix 1 and in more detail in Appendix 1-2 to the Medium Term Financial Strategy;

d.            approving the recommendation by the Strategic Director Finance and Customer Services (the Council’s Section 151 Officer) that a sum of up to £2.500 million of the interest equalisation earmarked reserve be drawn to support the revenue budget over the period of the Medium Term Financial Strategy and provide a sustainable budget for the Council;

e.            agreeing that the Surrey Heath Borough Council element of the annual council tax precept be increased by 2.99% across all Council Tax Bands;

(ii)    agreeing the Capital Strategy, as set out at Appendix 2 to the Medium Term Financial Strategy  and associated Capital Programme (appendix 2-1) covering the period 2024/25 to 2027/28, including:

f.             agreeing the new capital bids for £9.539 million in Appendix 2 to the Medium Term Financial Strategy for 2024/25 be approved, and that they be incorporated into the Capital Programme;

g.            reprofiling previous budgets into 2024/25 to 2027/28 as detailed in Appendix 2-1 amounting to £1.118 million in 2024/25;

h.            approving the Prudential Indicators summarised below and explained in Appendix 2 for 2024/25 to 2026/27 in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code for Capital Finance in Local Authorities 2011:

(iii)   The Treasury Management Strategy for 2024/25 shown at Appendix 3, Annex A to the Medium Term Financial Strategy be agreed, including;

i.              the Treasury Management Indicators for 2024/25 at Appendix 3, Annex C to the Medium Term Financial Strategy;

j.              the Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table at Appendix 3, Annex F to the Medium Term Financial Strategy; and

k.            the Treasury Management Policy Statement at Appendix 3, Annex G to the Medium Term Financial Strategy.

The Executive RESOLVED to note:

(i)            the forecast level of reserve balances shown at Appendix 4 to the Medium Term Financial Strategy; it should further be noted that these will be subject to confirmation once the outturn position for the current financial year (2023/24) is known and this will be reported in the revenue outturn report early in the new financial year;

(ii)          the Council Tax base for Surrey Heath Borough Council is 39,749.5 as set at the Executive meeting on 5 December 2023;

(iii)         the Medium Term Financial Strategy contains a savings target of £0.600 million over the period of the strategy which will be achieved through a combination of further services efficiencies, increases in income and potentially service reductions to be identified through a output-based budget review for all services of the Council and subject to a base budget review that will commence in the summer of 2024; and

(iv)         the statement of the Chief Financial Officer (Strategic Director Finance and Customer Services) on the robustness of estimates and sustainability of balances; and

(v)          the finance settlement from the Government was finalised through the House of Commons on 5 February 2024.