Agenda item

1.      Mr Brian Collins (Deputy Leader) introduced the report and outlined the overall budget proposals for the forthcoming year. He explained that the draft budget included £179.5m of core funded spending growth and reversals of £28m of previous savings. These spending pressures were offset by £14.7m of net reserve movements, £61.7m of new or full year savings, and £14.6m of income generation, resulting in a net change of £116.5m in revenue spending. This was funded through £66.2m from central government and retained business rates, and £50.3m from council tax and collection fund balances. The capital programme was funded entirely from external sources or planned borrowing, with no new borrowing proposed. Mr Collins explained that most spending growth related to Adult Social Care (£89.6m), Children’s Services (£50.3m), and Growth, Environment and Transport (£21.7m). He emphasised that demand and cost pressures continued to exceed government funding, requiring ongoing savings and income generation. The budget also included increased contributions to general reserves to improve resilience, alongside some drawdowns where earmarked reserves were no longer required. Although the Council welcomed reforms improving the distribution of government funding, overall settlement levels remained insufficient, necessitating council tax increases. The budget also outlined future financial challenges into 2027–28 and 2028–29.

2.      Further to questions and comments from Members the discussion included the following:

a)      Asked about grants to district councils for council tax collection, Officers explained that the only remaining agreements related to counter fraud work on tax collection, which delivered a strong rate of return.

b)      Asked about counter fraud funding and whether future savings could be quantified, Mr Collins responded that counter-fraud work was ongoing and that further data would be developed.

c)      Members asked whether staff had been consulted on proposals relating to the provision of office plants, given potential links to staff wellbeing. Officers confirmed that there had been no formal consultation with staff but acknowledged the wellbeing considerations, stating that further review would follow if the budget was approved. The plant contract covered multiple buildings and involved significant volumes of planting. Mr Collins confirmed that the associated cost was one reason the service was under review.

d)      A Member asked whether the financial risk exposure outlined in the risk register—totalling £411m—was the highest level recorded. Officers confirmed that risks had been rising for several years and that this was likely the highest to date, though it remained unlikely all risks would materialise simultaneously. Regarding the definition of “likely” within the risk framework, it was confirmed that this meant a greater than 50% chance over the three year medium term plan period.

e)      Clarification was sought regarding apparent differences in reserve figures between the dashboard and the budget document. Officers explained the distinction between impacts on the budget and actual reserve levels, noting that planned contributions and drawdowns resulted in a net increase to reserves next year, while the budget effect appears as a net reduction due to removal of prior year one off items.

f)       A Member raised concerns regarding the use of capital receipts to support the budget, the long term impact of not maximising council tax, and the risks associated with a managed decline in the estate.

g)      Clarity was sought on funding reductions for windmill maintenance, the rationale behind changes relating to Sessions House, and car parking income. Mr Collins stated that the Administration was aware of pressures on the estate and remained committed to responsible financial management. Officers referred to the Council’s “warm, safe and dry” estate strategy, the criteria for property disposal, and the ongoing review of car parking operations and charging models.

h)      Regarding arrangements for the Contact Centre, Officers confirmed that the Contact Centre would transfer to a new supplier from April with no change in operating hours and that most daytime staff would remain Kent based.

i)       Members asked about reserves and staff reductions, expressing concern about the scale of risks relative to reserve levels. Mr Collins stated his confidence in the budget’s deliverability and that staffing levels were under review.

j)       Clarification was sought on council tax assumptions and Mr Collins confirmed that a council tax freeze was an ambition rather than a commitment. Officers clarified the council tax assumptions within the medium term plan, highlighting that future years include only tax base growth, with no assumed council tax rises, and that resultant funding gaps were clearly identified for future decision making.

k)      Regarding newly proposed legal posts it was explained that these were generalist roles aligned with the Council’s ongoing insourcing strategy.

3.      RESOLVED to note the Administration’s draft capital and revenue budget proposals.