Issue - meetings

This report presents the financial strategy 2025/26 to 2029/30, including detailed revenue budget proposals for 2025/26, and asks Members to recommend to Council approval of the proposals.  The financial strategy delivers a balanced budget for 2025/26. There are separate reports on the agenda covering the capital budget, the capital and investment strategy and the treasury management strategy.

Resolved:

                         i.         To recommend to Council approval of the budget

proposals as outlined in the report. 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, including delegation to the Director of Finance to determine the costs that can be charged to the transformation programme.

Reason:     To ensure a legally balanced budget is set.

                        ii.         Approved the average rent increase of 2.7%

to be applied to all rents for 2025/26.

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

                      iii.         Approved the Discretionary Rate Relief Policy

set out in annex 9 and the Hardship Policy set out in annex 10.

Reason:     To ensure policies reflect the latest statutory guidance.

The Director of Finance introduced the report and highlighted the key areas which included a rise in Council tax, £22 million of investment, and £6.4 million of savings. She noted that it was a one-year settlement in light of the governments upcoming spending review. As the Section 151 officer she confirmed that while there were challenges and risks, she could confirm that the budget was prudent and made provision for known pressures.

The Executive Member for Finance, Performance, Major Projects, Human Rights, Equality, and Inclusion thanked officers for their work on the financial strategy and residents for participating in the largest budget consultation undertaken by the Council. She thanked partners across the city whose input had been important in the Council reaching its current financial position. She highlighted that from the consultation residents had been clear in wanting to see services protected and welcomed that the strategy wouldn’t require service cuts in the budget.

The Executive Member noted that the Executive had made decisions much as raising parking charges rather than cutting road maintenance. She confirmed that residents had responded in favour of a tourism levy, so the Council was exploring this. She stated that the Executive had inherited a Council that was too big for its current budget and the Executive would seek to find efficiency savings without cutting service provision.

The Executive Member for Health, Wellbeing, and Adult Social Care highlighted the challenges the Council faced in social care with an aging population and cases of complex needs. She welcomed the investment in the budget to support elderly, disabled, and residents with complex needs and help meet what was the Council’s statutory duty.

The Executive Member for Transport welcomed the £20,000 of funding of a study for how a dial and ride service could be delivered. She noted that the increase in parking charges and use of dynamic pricing at peak times would help improve highways and transport in the city. She also confirmed that the levelling out of prices across all York’s car parks would ensure no one needed to search for the cheapest car park and after consultation with business the Council had agreed to a 30% discount for minster badge holders.

The Executive Leader stated that the Council had made a great array of improvements. She highlighted with a better settlement from government the Council had been able to double its hardship fund to support residents with the cost of living.

Resolved:

                      i.         To recommend to Council approval of the budget

proposals as outlined in the report. 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  ...  view the full minutes text for item 77