Agenda item

To consider the recommendations made by the Executive, at their meeting on 21 January 2025, in relation to:

 

i)      The Financial Strategy 2025/26 to 2029/30 (Revenue Budget)

ii)    The Capital Budget 2025/26 to 2029/30

iii)  The Capital Financing and Investment Strategy

iv)  The Treasury Management Strategy Statement and Prudential Indicators 2025/26 to 2029/30.

These recommendations are set out in the attached report and will be moved by the Executive Leader.

 

Please note you can view the Executive Budget Agenda for 21 January 2025 here: https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=14504

 

Cllr Douglas moved, and Cllr Kilbane seconded, the following recommendations made by the Executive at its meeting on 21 January 2025 in relation to:

 

i)        The Financial Strategy 2025/26 to 2029/30 (Revenue Budget)

 

ii)      The Capital Budget 2025/26 to 2029/30

 

iii)    The Capital Financing and Investment Strategy

 

iv)    The Treasury Management Strategy Statement and Prudential Indicators 2025/26 to 2029/30

 

as set out in paragraphs 14 to 17 of the report at Agenda Item 8 on the Council agenda:

 

“Revenue Budget

Executive recommends that Council:

                  i.          Approves the budget proposals outlined in the Financial Strategy report and in particular;

                                      a)     The net revenue expenditure requirement of £156.921m

                                      b)     A council tax requirement of £120.180m

                                       c)     The revenue growth proposals as outlined in paragraphs 51 to 53

                                      d)     The 2025/26 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) 25/26 budget set out in annex 5

                                      g)     The Dedicated Schools Grant (DSG) proposals outlined from paragraph 141

                                      h)     The Flexible Use of Capital Receipts Policy set out in annex 7

                ii.          Notes that the effect of approving the income and expenditure proposals included in the recommendations would result in a 4.99% increase in the City of York Council element of the council tax, 2% of which would relate to the social care precept.

 

Reason:   To ensure a legally balanced budget is set.

 

Capital Budget 2025/26 to 2029/30

Executive recommends that Council approves the budget proposals outlined in the Capital Budget 2025/26 to 2029/30 and in particular:

                i.          Agree to the revised capital programme of £385.383m that reflects a net overall increase of £60.947m (as set out in table 2 and in Annex 1). Key elements of this include:

a)   New schemes funded by prudential borrowing totalling £8.150m as set out in table 3;

b)   Extension of prudential borrowing funded Rolling Programme schemes totalling £24.712m as set out in table 4;

c)    Extension of externally funded Rolling Programme schemes totalling £11.935m as set out in table 5;

d)   An increase in HRA funded schemes totalling £16.150m funded from a combination HRA balances/capital receipts as set out in table 6;

               ii.          Note the total increase in Council borrowing as a result of new schemes being recommended for approval is £32.862m the details of which are considered within this report and the financial strategy report

             iii.          Approve the full restated programme as summarised in Annex 2 totalling £385.383m covering financial years 2025/26 to 2029/30 as set out in table 12 and Annex 2

 

Reason:   In accordance with the statutory requirement to set a capital budget for the forthcoming financial year.

 

Capital and Investment Strategy

Executive recommends that Council:

                i.          Approve the Capital and Investment Strategy at Annex A

 

Reason:   To meet the statutory obligation to comply with the Prudential Code 2017

 

Treasury Management Strategy Statement and Prudential Indicators

Executive recommends that Council approve;

                i.          The treasury management strategy for 2025/26 including the annual investment strategy and the minimum revenue provision policy statement;

               ii.          The prudential indicators for 2025/26 to 2029/30 in the main body of the report;

             iii.          The specified and non-specified investments schedule (annex B)

             iv.          The scheme of delegation and the role of the section 151 officer (annex D)

Reason:    To enable the continued effective operation of the treasury management function and ensure that all council borrowing is prudent, affordable and sustainable.”

 

Liberal Democrat Amendment

 

Cllr Ayre moved, and Cllr Widdowson seconded, the following amendment on behalf of the Liberal Democrat Group:

 

“Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 14 of pages 43 and 44 of Council papers refers):

 

In sub paragraph c) add at the end of the sentence ‘subject to the following amendments;

 

·         £600k to reverse the full impact of savings to the Library Service

·         £370k additional funding to frontline neighbourhood services (of which £210k is one off and £160k recurring)

·         £150k one off investment in bus services

·         £300k one-off additional discounts to Green Waste charges and community waste disposal initiatives.

·         £340k one-off reduction to fund partial reversal of parking increases pending completion of the review of city centre parking provisions set in the Local Transport Strategy Implementation Plan

·         £150k budget to reinstate Dial & Ride Service (funded partly by Public Health Grant)

·         £200k one off investment in Social Service Day Club provision(funded from Public Health Grant)

·         £60k budget for Treasury Management to fund additional capital investment

 

In sub paragraph d) add at the end of the sentence ‘subject to the following amendments;

 

·       Delete additional Executive Support Assistant to Political Groups - £30k

·       Reduction in Chief Officer roles, grades and capacity - £145k

·       Reduction of two Executive Members - £40k

·       Delete posts in the communications team - £90k

·       Reduction in ICT budget - £140k

·       No longer fund Economic Development, with the ambition of this being passed to the Combined Authority - £105k

·       Reduction in council facility management contract spend - £150k

·       Fund £150k additional street cleaning through voluntary tourist tax

·       Remove vacant AD Public Health from establishment - £120k

·       Use of CYT acquisition reserve subject to CYT board approval £500k

 

Add sub paragraph i) to paragraph 14

i)      The use of £200k from the Public Health Reserve to fund the Social Care Day Clubs

 

Add sub paragraph j) to paragraph 14

j)      The use of £500k from the Venture Fund.”

 

Following debate, on being put to the vote, the amendment was declared LOST.

 

Conservative Amendment

 

Cllr Steward moved, and Cllr Rowley seconded, the following amendment on behalf of the Conservative Group:

 

“Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 14 of pages 43 and 44 of Council papers refers):

 

In sub paragraph a) delete “£156.921m” and replace with “£156.896m”

 

In sub paragraph b) delete £120.180m and replace with £120.155m

 

In sub paragraph c) add at the end of the sentence ‘subject to the following amendments;

 

·         £1,570k impact of reinstating a free first garden bin collection service

·         £50k additional funding to for community transport to support reprovision of Dial & Ride type services, if a city wide solution cannot be facilitated then specific areas to be able to bid for localised funding

·         £30k to freeze “Minster Badge” price at £30

·         £50k to provide free compost bins to be collected by the public.

·         £100k revenue cost of adding £1m capital to the Highways Budget

·         £200k (one off) budget for Parking incentives funded from Venture Fund

·         £25k (one off) Farming and General Countryside Hardship Fund to ensure benefits are accessed.

·         £15k (one off) funding to seek whether an orbital bus route can be provided.

·         Remove £150k growth for Community Caretakers

·         Reduce disability training growth by £40k (one-off), ensuring additional £10k embedded in annual budget

 

In sub paragraph d) add at the end of the sentence ‘subject to the following amendments;

 

·       Outsource management of the Mansion House - £25k

·       Outsource Adult Social Care Personal Support - £60k

·       Outsource Adult Social Care Day Support - £38k

·       Outsource Flaxman Avenue services - £26k

·       Reduce CCTV budget – seek funding from North Yorkshire Police - £100k

·       Delete posts in Democratic Governance - £89k

·       Delete budget for Our City - £60k

·       Reduction in Chief Officer roles and capacity - £200k

·       Reduce Executive Special Responsibility Allowances by 25% - £57k

·       Reduction of two Executive Members - £40k

·       Delete posts in the corporate policy team - £105k

·       Delete posts in the communications team - £150k

·       Reduce overtime budget - £100k

·       Delete Political Assistant posts - £90k

·       Delete post in Equalities Team - £50k

·       Delete posts in the Communities Team - £160k

·       Reduction in ICT budget - £150k

·       No longer fund Economic Development - £105k

·       Reduction in council publicity - £30k

·       Review of staff travel by - £20k

·       Remove school crossing patrols where other physical measures in place - £20k

 

Add sub paragraph i) to paragraph 14

i)                The use of £200k from the Venture Fund to fund the parking initiatives.

 

In paragraph 14 ii) third line, delete ‘4.99%’ and replace with ‘4.97%’.

 

Capital Budget 2025/26 to 2029/30

In relation to the Executive’s recommendations on the capital budget (paragraph 15 of page 44 of Council papers refers):

 

In paragraph 15 (i), first line delete ‘£385.383m’ and replace with ‘£386.383m’

 

In paragraph 15 (i), second line delete ‘£60.947m’ and replace with ‘£61.947m’

 

Under paragraph 15 (i), insert new sub paragraphs:

 

e) Increase borrowing by an additional £1m to fund Highway Maintenance in 2025/26

 

In paragraph 15 (ii), second line delete ‘£32.862m’ and replace with ‘£33.862m’

 

In paragraph 15 (iii), second line delete ‘£385.383m’ and replace with ‘£386.383m’.”

 

Following debate, on being put to the vote, the amendment was declared LOST.

 

After debate, a named vote was then taken on the original recommendations, with the following result:

 

For	Against	Abstained
Cllr Baxter	Cllr Ayre	Cllr Warters
Cllr B Burton	Cllr Cullwick
Cllr J Burton	Cllr Cuthbertson
Cllr Clarke	Cllr Fenton
Cllr Coles	Cllr Fisher
Cllr Crawshaw	Cllr Healey
Cllr Douglas	Cllr Hollyer
Cllr Kent	Cllr Hook
Cllr Kilbane	Cllr Knight
Cllr Lomas	Cllr Mason
Cllr Melly	Cllr Nicholls
Cllr Merrett	Cllr Orrell
Cllr Moroney	Cllr Rowley
Cllr Myers	Cllr Runciman
Cllr Nelson	Cllr Smalley
Cllr Pavlovic	Cllr Steward
Cllr Ravilious	Cllr Vassie
Cllr Rose	Cllr Waller
Cllr Steels-Walshaw	Cllr Wann
Cllr Taylor	Cllr Watson
Cllr Webb	Cllr Widdowson
Cllr Whitcroft
Cllr Wilson
Lord Mayor (Cllr Wells)
24	21	1

 

The original recommendations were therefore declared CARRIED

and it was

 

Resolved:   That the Executive’s recommendations to Council be

approved.