Agenda item

This report presents the revenue and capital budgets together with proposals for increases in Council Tax and the Adult Social Care Precept for 2025/26.

Cllr Mark Elliott, Cabinet Member for Resources, introduced the report, moved the officer recommendation and made the following points:

·  The budget reflects ongoing uncertainty, despite moving away from the previous chaotic Tory regime.

·  The Labour government has been slow to implement the significant reforms needed for local government stability.

·  The promised multi-year settlements are not yet confirmed; only 50% of the direct costs from the Employers’ National Insurance increase are funded.

·  Successful bids for new schools are still pending central government funding, causing additional costs to the Council.

·  The government's review into social care, set to complete in 2028, shows a lack of understanding as to the urgency of the issues facing local authorities with social care funding.

·  The starting point for the 2025/26 budget was a £14m shortfall, addressed through £6.7m in income generation and £7.31m in savings.

·  Unpredictable financial pressures, especially in Children's Services, have impacted the budget.

·  An increase of £6.5m in social care funding is proposed, following an £8m increase last year.  It is important to ensure that those who need care have the funding in place to meet their needs.

·  Significant contingency and provision budgets are included to mitigate risks, including £2.6m for contract inflation and £4.3m for high-risk service demand and cost increase provision.

·  Funding is being provided for "clean and green" initiatives, electric waste and recycling vehicles, new school street schemes, pedestrian crossings, and extended park and ride hours.

·  There is also investment in new technology to improve customer service and coordination.

·  The budget aims to protect the most vulnerable while managing unpredictability and uncertainty.

·  The council has healthy reserves and is not at risk of financial difficulty, unlike some other local authorities.

·  The budget reflects the council's commitment to improving lives and maintaining stability despite many current challenges.

Cllr Paul May seconded the motion and made the following points:

·  Children’s Services have been under intense pressure, but the administration has supported the service and openly and consistently backed the most vulnerable in our community.

·  Through this budget the children’s base budget of £36m has increased to nearly £41m following the previous year’s commitment of a 10% increase.

·  Reviews and inspections have consistently shown that the children’s services the Council provides are good with outstanding features delivered by dedicated staff.

Cllr Manda Rigby spoke about the new proposal to extend the hours of the Park and Ride scheme on a trial basis from April, to run until 11.30pm Monday to Saturday.  This will help the nighttime economy and will be beneficial to tourists visiting the city.  The importance of marketing this extended service was noted.

Cllr Alison Born stated that the decision to bring adult social care services back in-house has allowed for more skilled and compassionate care, early intervention, collaborative decision-making, and better resource allocation. Despite rising demand, costs, and staff shortages, progress is being made on transformation plans with continued investment from the administration. However, the council must also develop universal services, balancing investment in adult social care with necessary savings. Long-term, central government must address the increasing costs of adult social care, as local authorities cannot bear this burden alone. The forthcoming review by Louise Casey is welcomed but needs timely action.

Cllr Sarah Warren welcomed the funding that has been provided in the budget for the School Streets initiative.  This scheme will reduce traffic in and around schools during drop off and collection times to create a safer environment for children and to encourage active travel to improve health and wellbeing.

Cllr Matt McCabe highlighted the additional funding that has been secured for housing initiatives.

Cllr Kevin Guy thanked Cllr Elliott and officers for their excellent work to produce a balanced budget in difficult financial circumstances.

RESOLVED, unanimously:

(1)  To recommend Council to approve:

·  The General Fund net revenue budget for 2025/26 of £151.71m and the individual service cash limits for 2025/26 as outlined in Annex 1 of the report.

·  The savings and income plans outlined in Annex 2(i), funding requirements 2(ii), in conjunction with the Equalities Impact Assessment Report in Annex 3 of the report.

·  An increase in Council Tax of 2.99% in 2025/26 (an increase of £51.92 per Band D property or £1 per week).

·  An increase of 2% to Council Tax for the Adult Social Care Precept in recognition of the current demands and financial pressures on this service. This is equivalent to an increase of £34.72 on a Band D property (67p per week).

·  The movement in reserves outlined in section 5.6 and the adequacy of Un-earmarked Reserves at £12.58m within a risk assessed range requirement of £11.8m - £13.0m.

·  To note the Children’s Services management plan update set out in section 5.2.6 of the report.

·  The Efficiency Strategy attached at Annex 4 of the report.

·  The Capital Programme for 2025/26 of £76.41m including new and emerging capital bids outlined in Annex 5(i), planned sources of funding in 5.8.3, and notes the programme for 2026/27 to 2029/30 and that any wholly funded projects coming forward during the year will be added to the Capital Programme in line with the Budget Management Scheme.

·  The delegation of implementation, subject to consultation where appropriate, of the capital programmes set out in Annex 5(i) to Annex 5(iv) to the relevant Director in consultation with the appropriate Cabinet Portfolio Holder.

·  The Community Infrastructure Levy (CIL) allocations and amendments outlined in Annex 5(v) of the report.

·  The Capital & Investment Strategy attached at Annex 6 of the report.

·  The MRP Policy attached at Annex 7 of the report.

·  The Capital Prudential Indicators outlined in 5.8.7 of the report.

·  The Annual Pay Policy Statement at Annex 8 of the report.

·  The Community Contribution Fund extension outlined section 5.5 of the report.

·  The Council Tax Support Scheme for 2025/26 shown in the following link:  https://www.bathnes.gov.uk/sites/default/files/2025-01/Bath%20%26%20NE%20Someset%20S13A%20202526%20FINAL%20.pdf and referred to in 5.3.5 of the report.

·  The Fees and Charges schedule for 2025/26 at Annex 11 of the report and support its publication following approval of the budget, with delegation to amend individual costs within the schedule in line with market needs, to the Director of Place Management, in consultation with the appropriate Cabinet Portfolio Holder.

(2)  To agree that the Council include in its Council Tax setting, the precepts set and approved by other bodies including the local precepts of Town Councils, Parish Councils, and Charter Trustees of the City of Bath, and those of the Fire and Police Authorities.

(3)  To note the S151 Officer’s report on the robustness of the proposed budget and the adequacy of the Council’s reserves outlined in 5.7 of the report.

(4)  To note the budget consultation responses in Annex 10, and the PDS Panel feedback in Annex 12 of the report.

(5)  To authorise the Council’s S151 Officer, in consultation with the Portfolio Holder for Resources, to make any necessary changes to the draft budget proposal for submission to Council.