Agenda item

(11A)  Proposed Budget for 2024/25 and Provisional Budgets for 2025/26 and 2026/27

To consider the report of the Chief Officer Financial Services which presents the initial proposals for the Council’s 2024/25 budget and which seeks agreement to undertaking appropriate consultation on the proposed budget for 2024/25. In addition, the report provides the provisional budget position for 2025/26 and 2026/27.

(11B)  Revenue Savings Proposals for 2024/25 to 2026/27

To consider the report of the Chief Officer Financial Services which presents details of revenue savings proposals for the period 2024/25 to 2026/27.

(A)  Proposed Budget for 2024/25 and Provisional Budgets for 2025/26 and 2026/27

The Chief Officer Financial Services submitted a report presenting the initial proposals for the Council’s 2024/25 budget, which subject to Executive Board’s approval, was scheduled to be submitted to the respective Scrutiny Boards for their consideration and review, with the outcome of their deliberations being reported to Executive Board in February 2024, with the proposals also being made available for public and stakeholder consultation as part of a wider engagement process. In addition, the report invited the Board to note the Council’s provisional budget position for 2025/26 and 2026/27, and also sought the Board’s approval for Leeds to become a member of the 2024/25 Leeds City Region Business Rates Pool,should the application to form a pool be successful.

In presenting the report, the Leader noted that the initial budget proposals were being submitted to the Board ahead of the Government’s forthcoming publication of the Local Government Finance Settlement.

In response to a specific enquiry regarding the total amount that the Council would be spending on debt in the next financial year, it was undertaken that confirmation of that sum would be provided to the Member in question.

Responding to a concern raised, Members received further information on the timeframes for the proposed consultation exercise. In considering this matter, the difficulties of conducting consultation over the Christmas period were acknowledged, however, it was highlighted that given the external timetable being worked to, the consultation period lasted as long as possible whilst at the same time accommodating the required lead in timescales for the February Executive Board and Council meetings.

RESOLVED –

(a)  That it be noted that the Proposed Budget for 2024/25, as presented in the submitted report is based upon the approval and delivery of £65.8m of directorate savings for 2024/25, £58.4m of which have been brought to this Board through the accompanying reports, ‘Revenue Savings Proposals for 2024/25 to 2026/27’ at its October 2023 meeting and as part of today’s agenda;

(b)  That agreement be given to consultation being undertaken on the Proposed Budget for 2024/25, which includes the proposed 2.99% increases in core Council Tax and the 1.99% increase in the Adult Social Care precept. Further to this, agreement be given for these budget proposals to be submitted to Scrutiny and for wider consultation with stakeholders;

(c)  That the provisional budget position for 2025/26 and 2026/27, as presented in the submitted report, be noted, with it also being noted that further savings proposals to address the updated estimated budget gaps of £60.6m and £46.1m for 2025/26 and 2026/27 respectively will be reported to future meetings of this Board;

(d)  That should the application to form a 2024/25 Leeds City Region Business Rates Pool be successful, approval be given for Leeds City Council to become a member of the proposed Pool and to act as lead Authority for it; with it being noted that the establishment of this new Pool will be dependent upon none of the other proposed member Authorities choosing to withdraw within the statutory period after designation.

(B)  Revenue savings proposals for 2024/25 to 2026/27

Further to Minute No. 57, 18th October 2023, the Chief Officer Financial Services submitted a report presenting revenue savings proposals following ongoing review processes which continued to be undertaken across Council services. The proposals were presented as either ‘Business as Usual’ savings for the Board’s information, with decisions to give effect to those being taken by the relevant Director or Chief Officer, or as ‘Service Review’ proposals, in which the report sought approval for consultation to commence, where required, with decisions to give effect to those proposals being taken by the relevant Director or Chief Officer following such consultation and taking account of the outcomes from it.

RESOLVED –

(a)  That the ‘Business as Usual’ savings, as presented within the submitted report, be noted, with it also being noted that decisions to give effect to them shall be taken by the relevant Director or Chief Officer in accordance with the Officer Delegation Scheme (Executive functions);

(b)  That agreement be given for consultation to commence, where required, on the ‘Service Review’ savings proposals put forward, with it being noted that decisions to give effect to them shall be taken by the relevant Director or Chief Officer, following any consultation period, in accordance with the Officer Delegation Scheme (Executive functions) and decision-making framework, save where the Leader or the relevant Portfolio Holder has directed, or the Director considers that the matter should be referred to Executive Board for consideration;

(c)  That with regard to the Service Review savings proposal, ‘Thwaite Mills – closure of the facility and surrender of the release’, agreement be given to delegate decisions required to implement the lease surrender to the Director of City Development;

(d)  That it be noted that the savings proposals for 2024/25, as presented in the submitted report, combined with the savings proposals brought to the Executive Board at its October 2023 meeting, support a draft balanced budget for 2024/25 and the Council’s financial position for the following two years, as set out in the accompanying report elsewhere on the submitted agenda entitled, ‘Proposed Budget for 2024/25 and Provisional Budgets for 2025/26 and 2026/27’;

(e)  That it be noted that further savings will be required to close the Council’s estimated budget gap in the years 2025/26 and 2026/27, with it also being noted that proposals will be brought to future meetings of this Board.

(Under the provisions of Council Procedure Rule 16.5, Councillor A Lamb required it to be recorded that he abstained from voting on the decisions referred to within this minute)

(The resolutions referred to within Minute No. 81(A) (a), (b) and (c), given that these were decisions being made in accordance with the Budget and Policy Framework Procedure Rules, were not eligible for Call In, as Executive and Decision Making Procedure Rule 5.1.2 states that the power to Call In decisions does not extend to those decisions made in accordance with the Budget and Policy Framework Procedure Rules. However, the resolutions referred to in Minute No. 81(A) (d) and also 81(B) (a) – (e) were eligible for Call In, given that these were decisions not being taken as part of the Budget and Policy Framework Procedure Rules)