Issue - items at meetings - Council Budget 2025/26

To consider the Council Budget for 2025/26.

RESOLVED:

1. Cabinet noted and supported the following recommendations to Council:

a) The Council has consulted on its draft budget proposals and a summary of these responses are included at Annex A for Cabinet to consider before agreeing its recommendations to Council.

b) Cabinet notes the report and recommendations from the Budget and Resources Scrutiny Committee at Annex B and considers these as part of its final recommendations to Council.

c) That the Revenue Budget for 2025/26 totalling £270.178m be approved (Annex I).

d) That the Council Tax Band D of £1.759.72 for the Milton Keynes element of Council Tax, be approved. This is a 4.99% increase on the previous year (2.99% on the main element plus a 2.00% Adult Social Care Precept);

e) That the Council Tax requirement for the Council’s own purposes for 2025/26 (excluding parish precepts) of £175.329m, be approved.

f) That the position for the Dedicated Schools Grant of £407.174m and the Schools funding block for 2025/26 be noted and the budget and formula allocations for the High Needs Block and Early Years Block be approved (para 3.48 – 3.53).

g) That the parking account estimate for 2025/26 and use of the surplus be approved. (Annex J)

h) That the Housing Revenue Account Budget for 2025/26 be approved (para 3.42 to 3.47 and Annex K).

i) That increases to housing rents are set at 2.7% for tenants (an average increase of £2.85 per week) and 7.7% for shared owners (an average increase of £7.35 per week), the maximum level allowable under the Rent Standard (CPI + 1%) (para 3.44) be approved as per Annex K.

j) Garage rents are not increased for 2025/26 as per Annex K.

k) Housing Revenue Account service charges be approved (Annex K3).

l) The Rent and Service Charge Policy be approved. (Annex K4).

m) That the fees and charges for 2025/26 (including those fees and charges which are exceptions to the Income and Collection Policy) be approved. (Annex F)

n) That the Capital Strategy be approved. (Annex L)

o) That the Capital Programme for 2025/26 to 2029/30 be approved. (Annex M)

p) That the resource allocation for the 2025/26 Tariff Programme be approved. (Annex N)

q) That the Treasury Management Strategy for the 2025/26 to 2028/29 and the Treasury Policy Statement, including the Minimum Revenue Provision Policy, Borrowing Limits be approved. (Annex O)

r) That the financial forecast set out in the Medium Term Financial Plan (MTFP), in relation to both the resources and expenditure, be approved. (Annex T).

2. Cabinet is asked to note and support the following recommendations:

a) The Housing Rent Affordability and Market Context Report be noted. (Annex K2).

b) That the equalities impact assessments for the Budget Reduction proposals, as set out in Section 4 be noted.

Councillor Marland introduced the report on the Council Budget 2025/26, noting that 2024/25 was an exceptional year with the first overspend in many years driven by the record need for child placements. The budget had been out for consultation and public responses were included in the report.

Councillor Townsend thanked officers in the finance team and across every service area of the Council for the hard work that had gone in to getting the budget to a balanced position. She also thanked the members of the Budget and Resources Scrutiny Committee for their work scrutinising the budget and submitting a number of recommendations. It was highlighted that there were budget reductions and new income measures including a rise in council tax by the capped amount of 4.99% and an increase in council rents by 2.7%.

Councillor Cannon echoed the thanks to officers and those in other service areas for producing a balanced budget in what was a challenging financial environment.

Councillor Ferrans noted concerns with regard to the rising costs for homelessness and providing affordable housing in future years.

In response, Councillor Marland noted that he hoped that next year there would be a three year funding settlement which would enable better planning of the medium term finances for local authorities.