Agenda item

A report from the Executive Director – Resources is attached.  (Key decision – reference number 5683)

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, in respect of setting the Revenue Budget for 2024/25 and the Council’s Medium Term Financial Plan (MTFP) 2024/25 to 2028/29, and also setting the Council Tax levels for the 2024/25 financial year including the Greater London Authority (GLA) precept. The budget pressures being faced and the background to the proposed decisions were highlighted, and officers were thanked for all their hard work.

In response to Members’ queries, if was advised from early data that around 95% of councils were expecting to increase Council Tax by the maximum level of 4.99%.

DECISION:  The Cabinet :

I. Agreed to recommend to Council:

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. Agreed to:

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

iii. Recommend to Council 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.

iv. 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.

v. 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.

vi. 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. Agreed to recommend to Council that it agrees the planned flexible use of capital receipts in 2023/24 being £2.184m and approves the planned flexible use of capital receipts in 2024/25, being £1.0m (paragraphs 139 to 145 and Appendix 18).

IV. 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. Agreed to recommend to Council that it agrees the changes in Fees and Charges for 2024/25 as set out in paragraph 137 and 138 and Appendices 12 to 17 and to note the MTFP Update report to Cabinet in January recommended to Council to delegate authority to Executive Directors and Directors to negotiate discounts and make in year amendments where appropriate.

VI. Agreed to note the feedback from the Budget Consultation at Appendix 19a.

VII. 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. 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. Agreed to recommend to Council that it agrees the Schools Budget for 2024/25 (paragraphs 169 to 179 and Appendix 22).

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