Report to follow.

a) That the results of the Public Consultation process (Appendix 7 to the report referred) and the minute of the Overview Committee held on 28th January 2025 (Appendix 8 to the report referred) be noted.

b) That the following recommendations for onward referral to Full Council on 5th March 2025 be approved:

1.       That the Revenue Estimates for the General Fund 2025/26 (Appendices 1, 1a and 1b) be approved.

2.       That the Council Tax for a Band D property in 2025/26 be set at £171.54 (£4.95 per annum increase on 2024/25 levels).

3.       That the additions to and use of reserves (as detailed at Appendix 1 to the report referred) be approved.

4.       That the Medium-Term Financial Strategy (at Appendix 1 to the report referred) be approved.

5.       That the Capital Programmes and Capital Strategy (Appendices 1, 2 and 3 to the report referred) be approved.

6.       That the Section 25 addendum (Appendix 1 to the report referred) be noted.

7.       That the Treasury Management Policy Statement and Treasury Management Strategy Statement including MRP Policy (at Appendix 4 to the report referred) be approved.

8.       That the Fees and Charges Schedule 2025/26 (Appendix 5 to the report referred) be approved.

9.       That the Annual Delivery Plan for 2025/26 (Appendix 6 to the report referred) be approved.

A report was presented to consider approval of the General Fund Budget for 2025/26 including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Policy/Strategy, MRP Policy and Annual Investment Strategy and the Annual Delivery Plan including the approval of Council Tax levels for recommendation to Full Council.

During his introduction of the report, the Portfolio Holder for Finance highlighted that the creation of the 2025/26 budget had been extremely challenging for East Lindsey with increasing costs such as pay, contract costs and the IDB levy, plus reductions in government support. This was at a time when the Council was seeking to support those most vulnerable, to create a vibrant district for its residents to live in, to encourage growth in the significant visitor economy and facilitate businesses to grow.

Despite these challenges, as part of this budget the Council was providing more support to its residents as part of the new Council Tax Support Scheme, through the deployment of Long-Term Towns Funding and the delivery of the hugely significant programme of activity that the Council currently had underway funded mainly through grant.  The £54.1m Capital Programme was one of the most significant seen in recent years. In addition to this, the new East Lindsey Investment Fund of £10m would support the Council’s communities over the next few years and was all hugely positive for the District.

Key areas were highlighted as follows:

·       Internal Drainage Boards (IDBs) continued to be an ever-increasing pressure with an additional requirement for 2025/26 of £80k.  This equated to a 42% increase since 2021/22 which was clearly not sustainable on a now £5.39m a year bill for the Council to pick up.  Executive Board would be aware that the Council had been in detailed discussion with government officials regarding this difficult position over the past 2-3 years, as well as working through the Special Interest Group (SIG) to lobby heavily on this matter.  Extra funding for councils increasing in 2025/26 to £5m had now been confirmed by government as part of the final settlement and in respect of which the Council was very grateful, however allocations were yet to be confirmed.

·       Due to these pressures the Council was proposing to increase its Council Tax by the 2.97% equating to a £4.95 increase for a Band D property which equated to 9.5p a week. It was highlighted that the vast majority of properties in East Lindsey were band A/B and C so would see increases lower than this.

·       Two efficiency targets were included in the budget, one in respect of the IDB’s and the second relating to a need for general efficiencies of £711k.  Whilst this would be challenging, plans were in place to address this.

·       The budget also included a new grant in respect of the Extended Producer Responsibility funding that the Council had been awarded for costs it already incurred in the waste system.  This would be available to support the budget in 2025/26 if needed, or indeed future years as funding arrangements changed.

In conclusion, the Portfolio Holder for Finance highlighted that Member oversight of efficiency savings work would be undertaken by himself, working with the s151 officer and would be seeking to make better use of technology and buying power to drive savings, efficiencies and service transformation.

Members were invited to put their comments and questions forward.

The Portfolio Holder for Planning highlighted his support in full for a well-funded and balanced budget.  He highlighted that as a district council East Lindsey not only fulfilled its basic requirements but also its ambition for its people.  With regards to Internal Drainage Boards, it was recognised that these undertook a very important role and that a lot of areas across the district would not exist if it were not for the work of the IDBs.  Furthermore, it was pleasing to see that the work of the SIGs continued, and a further one-off settlement had been received.

The Portfolio Holder for Planning concluded by passing his thanks to the Portfolio Holder for Finance and his predecessor, together with the Finance Team for the tremendous work undertaken in producing a balanced budget for 2025/26.

The Portfolio Holder for Coastal Economy echoed his thanks to the Portfolio Holder for Finance and the Finance Team and commented that the increase in Council Tax for 2025/26 was very reasonable and considered that the Council had done remarkably well to achieve this.  He referred Members to the chart relating to IDBs and Council Tax at Section 6.2, page 5 of the Supplementary Agenda refers and highlighted that only 78 pence the Council received out of every £10 was spent on the requirements of the district.  Whilst he respected the work of the IDBs, it was considered that these should be funded by central government and highlighted the importance of this in relation to the future of the food growing industry.

The Portfolio Holder for Market Towns and Rural Economy made reference to the Council’s financial information, reporting measures and very well-managed finances.  He was also pleased that the Council had an exciting capital programme to look forward to.

In response, the Leader of the Council considered that the issues with IDBs could be readily sorted out by the government and that the Council did very well with the fraction of Council Tax remaining to spend in the district.  He further commented that the sound financial position the Council found itself in was due to the good work of officers and Portfolio Holders.

In conclusion, the Portfolio Holder for Finance asked that his thanks be noted in particular to the Finance Team and the Section 151 Officer, and also for the input from his fellow Portfolio Holders which assisted in putting the budget together.

The recommendations were duly proposed and seconded.

During discussion Members fully supported the recommendations

RESOLVED

a) That the results of the Public Consultation process (Appendix 7 to the report referred) and the minute of the Overview Committee held on 28th January 2025 (Appendix 8 to the report referred) be noted.

b) That the following recommendations for onward referral to Full Council on 5th March 2025 be approved:

1.       That the Revenue Estimates for the General Fund 2025/26 (Appendices 1, 1a and 1b) be approved.

2.       That the Council Tax for a Band D property in 2025/26 be set at £171.54 (£4.95 per annum increase on 2024/25 levels).

3.       That the additions to and use of reserves (as detailed at Appendix 1 to the report referred) be approved.

4.       That the Medium-Term Financial Strategy (at Appendix 1 to the report referred) be approved.

5.       That the Capital Programmes and Capital Strategy (Appendices 1, 2 and 3 to the report referred) be approved.

6.       That the Section 25 addendum (Appendix 1 to the report referred) be noted.

7.       That the Treasury Management Policy Statement and Treasury Management Strategy Statement including MRP Policy (at Appendix 4 to the report referred) be approved.

8.       That the Fees and Charges Schedule 2025/26 (Appendix 5 to the report referred) be approved.

9.       That the Annual Delivery Plan for 2025/26 (Appendix 6 to the report referred) be approved.

Reason:

To comply with the budgetary and policy framework and legislative requirement.

Other Options:

No other options were considered.