Decision details

Revenue and Capital Budget and Council Tax 2025/26 and MTFS 2025/26-29/30

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Decision Maker: Executive

Is Key decision?: Yes

Is subject to call in?: No

Decision:

Following consideration of the officer report, appendices, and discussion, the Executive resolved to agree and recommend to Full Council:

In respect of the Robustness of the Budget

Note the conclusions of the Council’s Interim Chief Finance Officer (Section 151 Officer) in their Section 25 report (Appendix A) confirming the robustness of the Budget estimates and the adequacy of the level of reserves for 2025/26 and their warning about the forecast deficits and the lack of Financial Sustainability over the period 2026/27 to 2029/30.

In respect of the General Fund Revenue Budget 2025/26

Having considered the detailed Equalities Impact Assessments Appendix L, approve the Savings and Income generation plans outlined in Appendices B(i) B(ii) and B(iii).

Approve the additional funding for new Growth requirements set out in Appendix C.

Approve the General Fund Net Revenue Budget for 2025/26 of £622.089m and the individual Executive and Service Directorate Budgets for 2025/26 as outlined in Appendix D.

Note the MTFP Movements set out in Appendix E from the report that was presented to Executive in December 2024.

Note the MTFP for the next five years set out in Appendix F and the MTFS 2025/26 – 2029/30 Strategy Document set out in Appendix G.

Approve the changes to the Fees and Charges schedule for 2025/26 set out in Appendix H.

Note the Specific Revenue Grants Schedule 2025/26 set out in Appendix I

Note the Parking Account for 2025/26 set out in Appendix K

Note the MTFP Cumulative Equalities Impact Assessment set out in Appendix L.

Note the 2025/26 Budget Consultation Feedback set out in Appendix M

Note and agree that the 2025/26 Budget has been balanced. The budget includes £43.000m of Exceptional Financial Support from MHCLG in the form of a Capitalisation Direction which enables operational expenditure to capitalised.

Note and accept that conditions will be attached to the Exceptional Financial Support Capitalisation Direction that Somerset Council will need to accept and fulfil.

In respect of the Dedicated Schools Grant

Note that the forecast spending on the Dedicated Schools Grant, set out in Appendix J(i) is forecast to exceed the funding provided by government by £33.914m in 2025/26 and is projected to reach a cumulative deficit of £99.125m by 31 March 2026.

Note the overall Dedicated Schools Grant allocation of £481.393m for 2025/26 and breakdown by block set out in Appendix J(ii).

In Respect of the Earmarked Reserves

Note that the level of General Reserves is maintained within the risk-based assessment range of £31.104m minimum to £62.208m maximum level.

Note the Earmarked Reserves reprofiling as set out in Appendix N.

Note the overall estimated position of Earmarked Reserves outlined in Table 17 and the proposed use of reserves detailed in Appendix N which includes the estimated use of Earmarked Reserves during the year.

In respect of the General Fund Capital

Consider and approve the Capital Investment Strategy for 2025/26 to 2029/30 set out in Appendix O

Approve the £235.103m new Capital proposals 2025/26 to 2029/30 set out in Appendix P

Approve the revised Capital Programme of £1,077.384m 2024/25 to 2029/30, as set out in Appendices Q(i) and Q(ii).

In respect of the Treasury Management Strategy and Prudential Indicators 2025/26

Approve the Treasury Management Strategy 2025/26 set out in Appendix R(i)

Approve the Minimum Revenue Provision 2024/25 & 2025/26 set out in Appendix R(i)

Approve the Non Treasury Investment Strategy 2025/26 set out in Appendix T

In respect of Council Tax

Approve the calculations for determining the Council Tax requirement for the year 2025/26 in accordance with the Local Government Finance Act 1992 set out in the Council Tax Resolution in Appendix U.

Agree to continue the Council Tax precept of £14.65, included in the overall band D Council Tax for the shadow Somerset Rivers Authority (representing no increase for 2025/26). This results in a Council Tax Requirement of £3,112,887 for the Somerset Rivers Authority

Approve the increase in Council Tax for a band D property for Somerset Council, including the Somerset Rivers Authority Precept, by £129.43 for 2025/26, giving a Band D Council Tax of £1,857.61 per year, being:

i. The General Band D Council Tax by 5.49%, £94.87, being the maximum permitted without a referendum and the additional 2.5% permitted by the Ministry of Housing Communities and Local Government as part of the Local Government Finance Settlement for 2025/26; and

ii. The Adult Social Care Precept by 2.00%, £34.56.

Approve a Special Expenses rate of £151,509 as detailed in Appendix U.

Approve the precept requirement of £394,863,503 (including Special Expenses Rate) £394,711,994 (excluding Special Expenses Rates).

Approve the 7.49% increase formal Council Tax resolution, in Appendix U, for Council Tax incorporating:

· 5.49% General Council Tax (including an additional 2.5% EFS) and

· 2.00% Adult Social Care Precept and

· Note the precepting bodies precepts on page 11 of Supplement 2

Note the Council Tax Scenarios set out in Appendix V

Publication date: 04/03/2025

Date of decision: 03/03/2025

Decided at meeting: 03/03/2025 - Executive

Accompanying Documents: