To receive an update from the Head of Finance (Client).

The Chairman welcomed Carl Holland, Head of Finance (Client) – PSPS Limited and Deputy Chief Executive (Corporate Development) and Section 151 Officer to provide an introduction and present Members with an update on the 2025/2026 Budget Setting Process.

Members received a presentation which highlighted the significant challenges, strategic issues and opportunities and an examination of the considerations in relation to the Medium-Term Financial Strategy (MTFS) in the context of the budget setting process (a copy is attached at Appendix A to the Minutes). 

Members were referred to the timeline which the budget process was expected to follow and were advised that the Budget Overview, 2025/26, (including Budget Consultation) would be presented to Overview Committee for further scrutiny on 21st January 2025, page 5 of Appendix A to the Minutes refers. 

N.B Councillor Neil Jones left the Meeting at 11.35am.

The Committee were further advised that examination of the budget setting process was a useful opportunity for Members to consider the risks that had been identified and the ways in which the proposed budget addressed the priorities of the Council.

N.B Councillor Neil Jones returned to the Meeting at 11.37am.

The Chairman spoke in support of the presentation and commented on the benefits of receiving a detailed overview of the budget timeline and information that outlined the Committee’s role.  The Chairman queried whether the presentation slides could be circulated to Members.  In response, the Head of Finance (Client) – PSPS confirmed that Members would be provided with a copy following the Meeting.

Christine Marshall, Deputy Chief Executive (Corporate Development) and Section 151 Officer provided Members with a summary of the main points for consideration of the upcoming budget.  Members were advised that the risks and implications were difficult to determine at this point in time due to potential changes that could affect the Council’s Partners and that a further assessment would be made after 30th October 2024 when the new government issued their Autumn Budget statement. 

The Section 151 Officer further advised Members of current issues of national concern which included National Insurance costs for employers and the new homes bonus which was still impacting on local authorities’ accounts.  The Section 151 Officer concluded that in anticipation of the Autumn Budget statement, it was expected that the Council would utilise a single year budget approach which would ensure a more fluid budget setting process.

Members were invited to put their comments and questions forward.

·         The Chairman queried whether an update on the political and emerging risks could be provided to Members after the Autumn Budget Statement had been announced.  In response, the Section 151 Officer advised Members that headline risks could be made available for the following Meeting.

·         The Scrutiny and Policy Officer took the opportunity to advise Members of upcoming training opportunities from the Centre for Governance and Scrutiny (CfGS) which was taking place online on 23rd October 2024 to examine keeping a watching brief on Council finances and exploring scrutiny’s role and powers.

·         A Member queried whether the online training sessions were usually recorded and could be shared.  In response, the Scrutiny and Policy Officer advised Members that sessions could on occasions be recorded and circulated to Members who could not attend.

·         A Member spoke in appreciation of the update and queried if there was a balancing effect between interest rates and investment income.

N.B Councillor Dick Edginton left the Meeting at 11.46am.

In response, the Section 151 Officer advised Members that a degree of balance existed between interest rates and investment income, and that low interest rates which had been historically as low as .1 percent were unlikely to occur again for some time.  The Section 151 Officer further explained to Members that local authorities were either operating as cash holders or debt takers and that each authority had a unique financial structure. The Section 151 Officer advised Members that ELDC was in a beneficial position as they were a cash holding authority.

·         In reference to the public consultation, a Member queried whether the consultation could be undertaken more openly rather than in an attempt to educate and inform the public about the pressures on the Council.

·         A Member provided an example of the consultation undertaken for Devolution which received guided public responses and commented that it was not satisfactory.

In response, the Section 151 Officer advised Members that educational consultations were a preferred option, and that this year’s consultation was intended to take a light touch approach.  The Section 151 Officer assured Members that the Council would continue to educate the public on the constraints on ELDC’s budget such as the Internal Drainage Board (IDB) levies which were unique to the authority.

·         A Member commented on consultations undertaken on the police budget and that they had been effectively structured to obtain public opinion.

N.B Councillor Dick Edginton returned to the Meeting at 11.50am.

·         A Member further commented that Councillor’s knowledge was not effectively utilised when making budget considerations and provided an example in relation to increases in carparking fees.

·         A Member commented that Employment Act and National Insurance changes could have a great impact on the Council’s budget.

·         The Chairman reiterated the need for further detail on the implications on the budget once the main risks had been identified following the Autumn Budget Statement and the importance of improving understanding for all Members of the Council.

·         A Member commented that half of ELDC’s residents’ rates went to IDBs and that the public were generally unaware.  In response, the Chairman commented that there were many areas where a lack of public understanding had occurred.

The Chairman thanked the Head of Finance (Client) - PSPS  and Deputy Chief Executive (Corporate Development) and Section 151 Officer for attending and providing an informative update.

N.B The Head of Finance (Client) – PSPS and the Deputy Chief Executive (Corporate Development) and Section 151 Officer left the Meeting at 11.55am.