Agenda item

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. 

The Executive considered a report setting out the Medium Term Financial Strategy (MTFS), the revenue budgets estimates for the 2024/25 financial year, and the indicative estimates for the period 2025/26 to 2027/28. The MTFS also incorporated a 4-year capital strategy and programme, plus a Treasury Management Strategy. It was noted that the budget reflected a proposal for the Council’s element of the annual council tax precept to be increased by 2.99% across all Council Tax Bands.

Members were reminded that, over the past few years the Council had applied some of its reserve balances to support regeneration and delivery of services to the local residents and businesses; however, this was not sustainable in perpetuity and as such the MTFS contained a savings and efficiencies target to balance the budget by keeping within the financing resources available. These targets would be met from a combination of further service efficiencies, looking at ways of increasing income, and potential non-statutory service reductions.

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.

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)  theMedium 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. 

Note: it was noted for the record that,

(i)            in relation to the capital grants set out in the Capital Programme, Councillor Shaun Garrett declared that he was a member of the Old Dean Bowling Club; and

(ii)          in relation to funding for clubs and bodies, Councillor Murray Rowlands declared that he was an Executive member of Camberley Job Club.