Agenda and decisions

To receive any apologies for absence.

To approve the minutes from the previous meeting.

To receive and note any declarations of interests in respect of any matters included on the agenda for consideration at this meeting.

(The other registrable interests of Councillors of Somerset Council, arising from membership of City, Town or Parish Councils and other Local Authorities will automatically be recorded in the minutes: City, Town & Parish Twin Hatters - Somerset Councillors 2023 )

The Chair to advise the Committee of any items on which members of the public have requested to speak and advise those members of the public present of the details of the Council’s public participation scheme.

For those members of the public who have submitted any questions or statements, please note, a three minute time limit applies to each speaker and you will be asked to speak before Councillors debate the issue.

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To note the latest Executive Forward Plan of planned key decisions that have been published on the Council’s website.

Click here to access - Executive Forward Plan

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

1. The advice of the Council’s Interim Chief Finance Officer (Section 151 Officer) in their Section 25 report (Appendix A) in relation to the robustness of the Budget estimates and the adequacy of the level of Reserves for 2025/26.
2. The Section 151 Officer’s warning about the critical financial position of the Council, the £101.384m 2026/27 Budget gap increasing to £190.041m over the medium term, inadequate reserves and the lack of financial sustainability over the period 2026/27 to 2029/30.
3. The minimum level of Reserves is set at 10% of the Net Revenue income stream on 1 April 2025 which is £33.254m (excluding the use of EFS to meet the Net Revenue Budget). The appropriate level of General Fund Balance be set at £60.000m for 2025/26.
4. The responsibility of Council Members under Section 31A of the Local Government Finance Act 1992, to have regard to this report when making decisions on agreeing the Budget and setting the Council Tax for the financial year 2025/26.

Note - EIA’s will be updated for proposals following consultation and before changes are implemented. This will specifically consider the potential disproportionate impact on disabled people. Where new proposals are brought forward these will include full consideration of due regard.

Following consideration of the officer report, appendices and discussion, the Executive resolved to:

1)    Support a consistent approach to parking across Somerset, including:

a.    The introduction of parking charges on Sundays, as set out in appendix 2

b.    The introduction of charging in free to use carparks, as set out in appendix 3

c.     The introduction of on-street charging in limited waiting bays as set out in appendix 4

2)    Acknowledge the increase resource requirements to deliver and maintain these changes

3)    Instruct officers to explore options for Capital upgrades to parking machine infrastructure across Somerset so that all machines have Cash, Card & Phone payments options”

4)    Acknowledging the feedback from the scrutiny committee and others, further commits that:

a.    It will not proceed with the implementation of a Somerset-wide overnight parking charge

b.    Prior to a final decision being made, and the implementation of a new Somerset-wide approach to charging for parking being brought in, further work will be done to understand and economic impact of the proposals, and that local communities will be given the ability to have their views taken into account on any proposed changes’

c.     That there will be a further opportunity for Scrutiny to consider the proposed changes

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  

1. 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 

2. 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). 

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

4. 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. 

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

6. 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. 

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

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

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

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

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

12. 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. 

13. 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 

14. 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. 

15. 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 

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

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

18. 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 

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

20. Approve the £235.103m new Capital proposals 2025/26 to 2029/30  ...  view the full decision text for item 8.

Following consideration of the officer report, appendices, and discussion, the Executive resolved to endorse the following recommendations and recommend them to Full Council for approval:

1. The HRA Annual Revenue Budget for 2025/26 as set out in Section 3 and in Appendix A.  

2. The Capital Programme of £304.638m including new additions of £213.587m and budget deletions of £4.738m as detailed in Section 4 and Appendix B. 

3. Delegate to the Chief Finance Officer (Section 151 Officer) to approve the final capital financing of the capital programme annual spend. 

4. Delegate to the Chief Finance Officer (Section 151 Officer) and the Executive Director of Community, Place & Economy, in conjunction with the Deputy Leader of the Council and Lead Member for Finance, Procurement and Performance and the Lead Member for Communities, Housing Revenue Account, Culture and Equalities and Diversity to approve the tenure (social vs affordable rents) of each social housing scheme. 

5. Delegated authority to the Executive Director of Community, Place & Economy and the Chief Finance Officer (Section 151 Officer), in conjunction with the Lead Member for Communities, Housing Revenue Account, Culture and Equalities and Diversity, to acquire dwellings in accordance with the HRA Capital Programme for 2025/26 to 2029/30 and updated Business Plan 2025/26. 

6. To approve the minimum balance for the HRA General Reserves at £5.863m, the equivalent of 10% of revenue for 2025/26 and approximately £600 per property. 

7. To note the Medium Term Financial Plan 2025/26 to 2029/30. 

8. To note the updated 30-Year Business Plan in Section 7 and Appendix C.