Agenda item

A report from the Executive Director – Resources is attached.  (Key decision – reference number 5682)

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, setting out information in relation to the Council’s budget, how the estimated budget gap is expected to be met through a variety of measures, and seeking approval of a suite of savings. The economic context and government funding decisions were highlighted. It was confirmed that the budget has been balanced for 2024/25, dependent on proposed savings, Council Tax increase, review of the Council Tax Support Scheme, and grant to Adult Social Care.

In response to members’ queries, further details were confirmed regarding the provisional Local Government Finance Settlement, and that Enfield was not fairly funded. On behalf of the Cabinet, Cllr Leaver and all the officers involved were thanked for their hard work towards bridging the budget gap.

DECISION:  The Cabinet agreed to:

I. Note that the budget has been balanced for 2024/25 subject to:

(a) The recommended level of Council tax increase;

(b) The implementation of the recommended Council Tax Support scheme changes;

(c) Approval and achievement of the further recommended set of savings and income proposals.

II. Note the intention to increase Council Tax by 4.99% (2.99% core and 2.00% Adult Social Care Precept) for 2024/25, the maximum allowable without breaching referendum limits.

III. Note the forecast budget gap of £85.763m across the entire period covered by the medium term financial plan, of which £25.375m is in 2025/26.

IV. Note that whilst the 2024/25 budget is balanced subject to the points set out in paragraph (I) above, there is now an increased forecast overspend of circa £29m for 2023/24 (note this is indicative at the time of writing this report).

V. Note the details announced in the Chancellor’s Autumn Statement, which was delivered on 22nd November 2023 and the Local Government Policy statement on 5th December 2023.

VI. Note the outcome of the provisional Local Government Finance Settlement as described in paragraph 7 of the report.

VII. Note that the smaller Business Rate Pool of eight London boroughs including Enfield will extend for a further year in 2024/25.

VIII. Note the update on funding in paragraphs 32 to 49 and spending pressures set out in paragraphs 50 to 64 of the report.

IX. Approve the proposed further income and savings proposals brought forward in January of £7.026m for 2024/25 set out in Appendix D(iii) of the report comprising:

(a) £4.210m from efficiencies and,

(b) £2.816m from receipts and income generation.

X. Note that the income and savings proposals set out in the report are being recommended for approval subject to consultation and assessment of the equality implications where relevant.

XI. Note the intended use of £1.021m Council Tax surplus within the 2024/25 General Fund revenue budget.

XII. Note the use of reserves in 2024/25 to meet welfare costs set out in paragraphs 75 to 79 of the report.

XIII. Note the overall forecast level of reserves over the medium term, ensuring the Council’s financial sustainability set out in paragraphs 80 to 87 of the report.

XIV. Note the proposed fees and charges (subject to Council approval) set out in Appendices G to K of the report and the continuation of the flexibility introduced in 2021/22 for these to be varied in year where appropriate.

The report sets out the options considered, if any, and the reasons for the recommendations and the decision.

(Key decision – reference number 5682)