Agenda item

To consider and make any appropriate recommendations to Cabinet on the Draft Medium Term Financial Strategy, Draft General Fund Budget 2025/26 and Draft Capital Programme 2025-2028 for consultation.

Members consider the Revised Budget and Capital Programme 2025/26 report presented by Councillor Chris Boden

Councillor Boden paid tribute to the work undertaken by Mark Saunders stating his expertise and knowledge is second to none and made reference to the White Paper and the future plans of the Council.

Members made comments, asked questions, and received responses as follows:

·         Councillor Hicks stated that in light of the information shared in the budget plan it shows that over the next two years there will be a £2.5 million pound deficit, and he would like to know how this was going to be addressed and how will the shortfall be made up in the time the Council has left? Councillor Boden responded the Council has to be aware of the revenue accounts position, the revenue savings that were made and the reserves created, specifically the budget equalisation reserve, all of these things will need to be taken into account in the new balance that the Council will create between the different priorities that the Council will be putting forward for next year and for the years following up until 2028.

·         Councillor Booth raised a point on the budget that it does appear that the Council are getting into a worse position and asked if the Council should not be a little more cautious particularly with the point around Council Tax given that it will be around £5 million in deficit before this Council ceases to exist and obviously the Council as it is right now does not want to be seen as not providing the best governance for the Fenland residents. Councillor Boden responded there needs to be a definition between dept and revenue deficit and agreed the Council has to bear in mind the revenue account and it needs to look at the expenditure that it was going to occur which now may no longer be appropriate to do, some of that is on the capital side which would have had revenue implication. He stated that it is difficult to overstate just how fundamental the change of mindset has to be as a result of what has now been announced which means the Council now has to look out for the best interests for the longer term of the people of Fenland and the services this Council provides at a standard that the Fenland people expect right up until the 31 March 2028 with the Council needing to be prudent with the resources on the Council Tax side and on the assets side in the Council with the resources which belong to Fenland which should be used for the benefit of the people of Fenland. Councillor Boden continued there is an interesting set of choices to make between priorities to achieve the best outcome that is possible for the people of Fenland when Fenland District Council becomes 15% of a new Unitary Authority on 1 April 2028.

·         Councillor Roy stated given the amount of work that goes into the Business Plan and the Budget and that the Council are heading into so many unknowns and is in a state of flux, he felt it needed to be applauded the work that officers have put in up to this stage as it must be a tremendous ask to get to this point not knowing what lies in the future.

Members considered and noted the draft budget proposals for 2025/26 and the updated capital programme.