Agenda item

Committee is asked to:

1.

a)    Note the proposed Outline Budget parameters for 2025-28 to  2028-29    and the issues and challenges raised in the Report.

b)    Note the current projected Budget shortfalls over the outline periods set out in Table 1 (section 6 )

c)     Subject to the recommendation of the Commercial Assets Sub Committee, agree in principle to the use of £1m per annum (pa) in 2026/2027 up to £5m pa in 2030/31 revenue income from investment assets to accelerate the building up of the investment sinking fund reserves, resulting in less income to support annual service provision.

2.

a)    Agree the Outline Corporate Transformation Programme covering the  years 2025 to 2031 which is fundamentally focused on closing the Outline Budget Gaps for the years 2025-26 to 2028-29 to ensure the ongoing financial viability of the Council. (Appendix 2).

b)    Agree to set up a Members Transformation Board, with draft terms of reference to be brought back to the next meeting of the Committee.

c)     Create a Transformation Reserve by setting aside £0.5m from Revenue to pump prime resourcing of the Outline Transformation Programme over the Outline Budget period

The Committee resolved to:

1a. note the proposed Outline Budget parameters for 2025-28 to 2028-29 and the issues and challenges raised in the report,

1b. note the current projected Budget shortfalls over the outlined periods set out in the report,

1c. subject to a recommendation of the Commercial Assets Sub-Committee, agree in principle to the use of £1m per annum in 2026/27 up to £5m per annum in 2030/31 revenue income from investment assets to accelerate the building up of the investment sinking fund reserves, resulting in less income to support annual service provision,

2a. agree the Outline Corporate Transformation Programme covering the year 2025-26 to 2028-29 to ensure he ongoing financial viability of the Council; and

2b. agree to set up a Members Transformation Board, with draft Terms of Reference to be brought back to the next meeting of the Committee.

The Committee were advised that work on a new Sinking Fund model was underway and that it would be presented to both this Committee and the Commercial Assets Sub-Committee before the final budgets were approved to aid members by providing clarification of how some of the figures were compiled.

The Committee requested that any modelling should include stress testing and it should ensure that all parameters and assumptions tested were clear and transparent.

It was suggested by the Committee that the Council develop its Investment Property Portfolio Modelling to bring them in line with expected practice of an institutional investor (as recommended by the Council’s External Auditors). This would include stress testing and sensitivity analysis which would incorporate scenarios that covered the highest level of risk for expenditure, revenue, tenant behaviour and external socio-economic factors.

The Committee were advised that a Transformation Board, consisting of 7 councillors supported by officers, would be put in place. This would be subject to proportionality rules and the Democratic Services Manager would circulate the proportionality calculations and request nominations for members to sit on this Board. The Terms of Reference for this Board would be presented at the next meeting of this Committee for approval.

It was proposed by Cllr Sexton, seconded by Cllr Bateson and resolved to suspend Standing Order 38.3 to allow the meeting to continue beyond 22:00.

The Committee resolved to:

1a. note the proposed Outline Budget parameters for 2025-28 to 2028-29 and the issues and challenges raised in the report,

1b. note the current projected Budget shortfalls over the outlined periods set out in the report,

1c. subject to a recommendation of the Commercial Assets Sub-Committee, agree in principle to the use of £1m per annum in 2026/27 up to £5m per annum in 2030/31 revenue income from investment assets to accelerate the building up of the investment sinking fund reserves, resulting in less income to support annual service provision,

2a. agree the Outline Corporate Transformation Programme covering the year 2025-26 to 2028-29 to ensure he ongoing financial viability of the Council; and

2b. agree to set up a Members Transformation Board, with draft Terms of Reference to be brought back to the next meeting of the Committee.

Councillor Geach left the Chamber at 22.10