The report and appendices set out all the relevant information in support of the Council’s Budget for General Fund services and Council Tax for 2024/25, together with financial forecast information through to 2028/29. Also included is information on the Housing Revenue Account (HRA) budget for 2024/25 and the Capital Programme 2024/25 to 2028/29.

(i)            Appendix A - The General Fund budget proposals for 2024/25 to 2028/29.

(ii)          Appendix B - The Housing Revenue Account (HRA) budget proposals for 2024/25 onwards.

(iii)         Appendix C - The Capital Programme 2024-29.

(iv)         Appendix D – Fees & Charges Schedule 2024/25.

(v)          Appendix E - Pay Policy Statement.

The report summarised the detailed service budgets, together with known adjustments including the impact of the provisional central government grant funding.

The key elements of the proposed budget are:

General Fund

1) A proposed 2.99% increase in Council Tax for 2024/25 for Brentwood Borough Council services.

2) Earmarked Reserves to set aside appropriate balances to mitigate future financial risk and build up in borough regeneration.

3) Future uncertainty of local government financing.

4) The budget will be balanced in 2024/25 & 2025/26. However, there will be a budget gap in 2026/27 which will grow during the remainder of the Medium Term Financial Strategy (MTFS).

Housing Revenue Account

1) A balanced budget across the MTFS.

2) There will be a contribution to reserves to pay for the deficit in 2025/26 of £212k.

3) Proposed increase in rents of 7.7%

4) Continued investment in the delivery of Decent Homes and development of Housing within the Borough.

5) Significant investment in the Strategic Housing Delivery Programme ensuring the 30-year business plan is sustainable.

Capital

1) Total capital investment of £27.2m (General Fund) and £26.1m (HRA) in 2024/25.

2) Subsequent investment of £20.1m (General Fund) and £69.1m (HRA) from 2025 to 2029.

The Chair amended R6 from Approve the Fees & Charges Schedule in Appendix D to Note the Fees & Charges Schedule in Appendix D. 

The Chair advised of an amended Appendix C which was tabled on the night for the committee and appended to these minutes.  This was with the £18m regeneration fund removed. 

The Chair thanked Mr Willis, Mr Wood and the finance team for their work on this. 

Cllr Barber asked with the current state of rent arrears and the current climate, the proposed rent increase is likely to impact and increase the rent arrears.  What is the current rent arrears cumulatively is and what the impact of the 7.7% increase will be on rent arrears being estimated as part of this budget.  Mr Willis did not have that information to hand and would respond to this offline. 

The recommendations was MOVED by Cllr Kendall and SECONDED by Cllr Laplain. A vote was taken by a show of hands and was RESOLVED:

Members are asked to:

R1. Approve the General Fund Budget 2024/25 and Medium-Term Financial Strategy as set out in Appendix A.

R2. Approve a proposed Council Tax increase of 2.99% for 2024/25, the charge of Band D property increases to £210.70 per annum for Brentwood Council services only.

R3. Approve the HRA budget 2024/25 including the 30-year HRA Business Plan within Appendix B.

R4. Approve a proposed increase to rents of 7.7% for 2024/25.

R5. Approve the Capital Programme 2024-29 in Appendix C.

R6. Approve Note the Fees & Charges Schedule in Appendix D.

R7. Approve the Pay Policy Statement in Appendix E.

REASON FOR RECOMMENDATION

Effective financial management underpins all the priorities for the Council and will enable the Council to operate within a sustainable budget environment.

The Council is required to approve the Budget as part of the Budget and Policy Framework.