Agenda item

Council is asked to agree the budget for 2024/25 and the Medium Term Financial Plan.

Cllr Leaver moved, and Cllr Ergin Erbil seconded, the report.

 

Cllr Leaver introduced the report and highlighted the background context and challenges, including government under-funding and economic pressures. The pressures in the MTFP were set out in Appendix 6 of the report. Consultation in relation to setting the budget, including consideration by the Overview and Scrutiny Committee, was also noted. The comments of the Chief Finance Officer in respect of the robustness of the budget were included in the report at Appendix 1a and noted. Officers and Cabinet colleagues were thanked for supporting the process. The Council would be setting a balanced budget which was prudent and responsible. Cabinet Members provided detail of pressures affecting service areas, investment in the borough, and protection of services for the most vulnerable residents.

 

The Opposition expressed their concerns in respect of raising of taxes, fees and charges and proposed cuts to services for residents. Money continued to be spent on external consultants and solicitors, and on Civic Centre refurbishments. The Administration’s manifesto commitments were not being kept. Warnings in respect of borrowing and debt servicing had not been heeded. There were concerns regarding the level of reserves. Residents had made their top issues known during the consultation but had been ignored. The balanced budget was dependent on in-year savings, which were known to be rarely achieved, and only 3.5% wage increases.

 

During the debate, a procedural motion moved by Cllr Ozaydin and seconded by Cllr Ergin Erbil under paragraph 13.20 (viii) of the Council’s Procedure Rules to extend the debate for 30 minutes was AGREED.

 

A further procedural motion moved by Cllr Ozaydin and seconded by Cllr Ergin Erbil under paragraph 13.20 (viii) of the Council’s Procedure Rules to extend the debate for a further 10 minutes was AGREED.

 

Before members’ summing up, a procedural motion moved by Cllr Ozaydin and seconded by Cllr Ergin Erbil under paragraph 13.20 (viii) of the Council’s Procedure Rules to extend the time for debate of reports for 60 minutes was AGREED.

 

The report recommendations were agreed following a recorded vote (as required by law) detailed below:

 

For:

Cllr Abdul Abdullahi

Cllr Josh Abey

Cllr Nicki Adeleke

Cllr Gunes Akbulut

Cllr Mahmut Aksanoglu

Cllr Nawshad Ali

Cllr Kate Anolue

Cllr Chinelo Anyanwu

Cllr Mahym Bedekova

Cllr Alev Cazimoglu

Cllr Mustafa Cetinkaya

Cllr Hivran Dalkaya

Cllr Guney Dogan

Cllr Elif Erbil

Cllr Ergin Erbil

Cllr Susan Erbil

Cllr Margaret Greer

Cllr Ayten Guzel

Cllr Nelly Gyosheva

Cllr Ahmet Hasan

Cllr Chris James

Cllr Rick Jewell

Cllr Doris Jiagge

Cllr Tim Leaver

Cllr Ahmet Oykener

Cllr Sabri Ozaydin

Cllr George Savva

Cllr Doug Taylor

Cllr Eylem Yuruk

 

Against:

Cllr Maria Alexandrou

Cllr Lee Chamberlain

Cllr Chris Dey

Cllr Hannah Dyson

Cllr Peter Fallart

Cllr Reece Fox

Cllr Alessandro Georgiou

Cllr Pat Gregory

Cllr James Hockney

Cllr Stephanos Ioannou

Cllr Chris Joannides

Cllr Joanne Laban

Cllr Andy Milne

Cllr Elisa Morreale

Cllr Tom O’Halloran

Cllr Paul Pratt

Cllr Michael Rye

Cllr Julian Sampson

Cllr Ruby Sampson

Cllr David Skelton

Cllr Edward Smith

Cllr Jim Steven

Cllr Emma Supple

Cllr Andrew Thorp

 

AGREED:

 

I. Council agreed:

i. To agree to the budget set for 2024/25 and to agree the Medium-Term Financial Plan, including:

a. A net revenue budget of £318.530m for 2024/25, an 11.01% increase when compared with 2023/24.

b. The pressures set out in Appendix 6 totalling £48.6m in 2024/25, which include:

• £11.4m for Demographic pressures within Adults and Children’s Social Care and SEN Transport to reflect growing demand in these areas.

• £17.2m of Inflation and pay award funding

• £7.7m for Homelessness pressures

• £2.4m increase in Capital Financing included within the pressures figure, with £11.9m is set aside for Capital Financing over the lifetime of the current MTFP.

c. full year effects of prior year savings and income totalling a positive value of £1.322m (due to reversal of one-off savings and reassessment of deliverability of savings previously agreed) set out in Appendix 7.

d. the new savings of £10.690m and income proposals of £5.878m in 2024/25 set out in Appendix 8.

e. increased Government funding of a net increase of £6.6m (£8.4m for social care in 2024/25, a £1.4m increase in Revenue Support Grant; less £3.2m reduction in other core Government grant funding (excluding business rates).

f. total business rates income for 2024/25 at £98.5m, an increase of £9.2m on 2023/24 and £164.1m for Council Tax, an increase of £17.2m.

g. the use of one-off funding sources, comprising of:

• £3.0m benefit from continuing to be a member of the 8 authority Business Rate pool, and

• £1.0m Collection Fund surplus.

h. to note the gap remaining in the MTFP for 2025/26 of £30.267m; and of £85.995m for the period 2025/26 to 2028/29 and the actions being taken to address this challenging position.

 

II. Council agreed:

i. With regard to the Revenue Budget for 2024/25 to set the Council Tax Requirement for Enfield at £164.118m in 2024/25; and

ii. To set the Council Tax at Band D for Enfield’s services for 2024/25 at £1,594.08, being a 2.99% general Council Tax increase (£1,360.37) and a 2.00% Adult Social Care Precept (£233.71). The total Enfield element represents an increase of £1.45 per week for a Band D property.

iii. To note, the Council will levy a Council Tax of £471.40 at Band D on behalf of the Greater London Authority which is an 8.58% increase; equivalent to an increase of £0.72 per week for a Band D property.

iv. To note, in total the impact of these proposals will be total Council Tax of £2,065.48 at Band D, a 5.79% increase on the 2023/24 level, equivalent to an increase of £2.17 per week for a Band D property.

v. To approve, in accordance with the Levelling Up and Regeneration Act 2023, the revised discretionary power to levy a Council Tax premium of 100% in respect of second homes from the 1st April 2025. (paragraphs 62 to 63).

 

III. Council agreed the planned flexible use of capital receipts in 2023/24 being £2.184m and approve the planned flexible use of capital receipts in 2024/25, being £1.0m (paragraphs 139 to 145 and Appendix 18).

 

IV. Council agreed to approve that any in year changes required to the Flexible Use of Capital Receipts strategy is delegated to the Executive Director of Resources in consultation with the Cabinet Member for Finance and Procurement and reported to Cabinet in the quarterly Revenue Monitoring reports.

 

V. Council agreed the Fees and Charges for 2024/25 as set out in the Appendices and to delegate authority to Executive Directors and Directors to negotiate discounts and make in year amendments where appropriate.

 

VI. Council agreed to note the feedback from the Budget Consultation set out in the Appendices.

 

VII. Council agreed to note the minutes of the Overview and Scrutiny Committee Meeting on 15 January 2024 which are set out in Appendix 19b of the report.

 

VIII. Council agreed with regard to the robustness of the 2024/25 budget and the adequacy of the Council’s earmarked reserves and balances to:

i. note the risks and uncertainties inherent in the 2024/25 budget and the MTFP (paragraphs 157 to 161) and agree the actions in hand to mitigate them;

ii. note the advice of the Executive Director of Resources regarding the recommended levels of contingencies, balances, and earmarked reserves (paragraphs 36 to 39 and Appendix 1a) when making final decisions on the 2024/25 budget;

iii. agree the recommended levels of central contingency and general balances (paragraphs 128 to 136);

iv. note the use of reserves in 2024/25 to meet welfare costs set out in paragraphs 110 to 116, to support households in financial crisis; and

v. note the overall forecast level of reserves over the medium term, ensuring the Council’s financial sustainability set out in paragraphs 128 to 136.

 

IX. Council agreed the Schools Budget for 2024/25 (paragraphs 169 to 179 and Appendix 22 of the report).