Agenda item

This report presents the financial strategy 2024/25 to 2028/29, including detailed revenue budget proposals for 2024/25, and asks Members to recommend to Council approval of the proposals.

Recommended:

                      i.         That Council approve the budget proposals as outlined in this report. In particular;

a)   The net revenue expenditure requirement of £149.268m;

b)   A council tax requirement of £113.927m.

c)   The revenue growth proposals as outlined in the body of the report.

d)   The 2024/25 revenue savings proposals as outlined in annex 2.

e)   The fees and charges proposals as outlined in annex 3.

f)     The Housing Revenue Account (HRA) 24/25 budget set out in annex 5.

g)   The Dedicated Schools Grant (DSG) proposals outlined from paragraph 139.

                     ii.         That Council approve a 4.99% increase in the City of York element of the council tax, 2% of which would relate to the social care precept. It is intended that the total council tax increase including the parish, police and fire authority precepts;

                    iii.        That Council approve the 100% increase in council tax

on second homes with effect from 1st April 2025 subject to the Levelling Up bill receive Royal Assent by 31st March 2024, as set out in paragraphs 75 to 77.

Reason:     To ensure a legally balanced budget is set.

                   iv.        That Council approve the average rent increase of 7.7% to be applied to all rents for 2024/25.

Reason:     To ensure the ongoing financial stability of the Housing Revenue Account and allow work on improving the quality of the council’s affordable housing to continue.

The Executive Leader outlined the financial challenge to Local Authorities and highlighted the number of Councils submitting section 114 notices. She noted that cuts to Council funding due to austerity and a rising cost in areas such as adult social care meant a new funding model was required to reverse the direction of Local Authority finances throughout the country.

The Chief Finance Officer introduced the Financial Strategy report which would deliver a balanced budget for 2024/25, with

savings proposals totalling £14.3m, equivalent to 9% of the net budget.

The Executive Member for Finance, Performance, Major Projects and Equalities stated that the Council was required to submit a balanced budget. She noted that the Council was one of the lowest funded Local Authorities in the country. Following savings required to submit a balanced budget in 2024/25 she confirmed that the Council would be required to make an estimated £10m saving every year for the next 3 years and that it was important to put the Council on a strong on a good financial footing to meet these budget pressures.

The Executive Member for Health, Wellbeing and Adult Social Care addressed the proposal for a reduction in funding to York Explore. She praised York Explore for the running of York’s libraries but noted that the Council had in previous years not cut any funding to library services while other areas had had to make savings. She highlighted capital spend in previous years to improve York libraries and that while the Council would seek savings on funding to libraries to assist in continuing to meet statutory services, the Council were keen to work with York Explore to assist in increasing York Explore’s revenue, to offset any required reductions.

Resolved:

                         i.         That Council approve the budget proposals as outlined in this report. In particular;

a)   The net revenue expenditure requirement of £149.268m;

b)   A council tax requirement of £113.927m.

c)    The revenue growth proposals as outlined in the body of the report.

d)   The 2024/25 revenue savings proposals as outlined in annex 2.

e)   The fees and charges proposals as outlined in annex 3.

f)     The Housing Revenue Account (HRA) 24/25 budget set out in annex 5.

g)   The Dedicated Schools Grant (DSG) proposals outlined from paragraph 139.

                        ii.         That Council approve a 4.99% increase in the City of York element of the council tax, 2% of which would relate to the social care precept. It is intended that the total council tax increase including the parish, police and fire authority precepts;

                      iii.         That Council approve the 100% increase in council tax

on second homes with effect from 1st April 2025 subject to the Levelling Up bill receive Royal Assent by 31st March 2024, as set out in paragraphs 75 to 77.

Reason:     To ensure a legally balanced budget is set.

                      iv.         That Council approve the average rent increase of 7.7% to be applied to all rents for 2024/25.

Reason:     To ensure the ongoing financial stability of the Housing Revenue Account and allow work on improving the quality of the council’s affordable housing to continue.