Agenda item

(A) Proposed Budget for 2025/26 and Provisional Budgets for 2026/27 and 2027/28

To consider the report of the Interim Assistant Chief Executive – Finance, Traded and Resources which presents the initial proposals for the Council’s 2025/26 budget and which seeks agreement to undertaking appropriate consultation on the proposed budget for 2025/26. In addition, the report provides the provisional budget position for 2026/27 and 2027/28.

(B) Revenue Savings Proposals for 2025/26 to 2027/28

To consider the report of the Interim Assistant Chief Executive – Finance, Traded and Resources which presents details of revenue savings proposals for the period 2025/26 to 2027/28.

(A) Proposed Budget for 2025/26 and Provisional Budgets for 2026/27 and 2027/28

The Interim Assistant Chief Executive – Finance, Traded and Resources submitted a report presenting the initial proposals for the Council’s 2025/26 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 2025, 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 2026/27 and 2027/28, and also sought the Board’s approval for Leeds to become a member of the 2025/26 Leeds City Region Business Rates Pool, should the application to form a pool be successful.

It was noted that the submission of the initial budget proposals to Executive Board was for the purpose of agreeing that the proposals are released for the required consultation processes.

In considering the national challenges that continued to be faced in relation to Adult Social Care, a Member made an enquiry regarding the impact upon social care providers and the Council when considering the increase in employers’ National Insurance Contributions (NICs) and the increase in National Living Wage and whether these issues had been captured in the initial budget proposals. In response, the Board was provided with an update on the latest position in relation to such matters. It was further noted that discussions continued both locally and nationally regarding the potential impact upon Local Authorities arising from the increase in employers’ NICs for those services which were commissioned and delivered by a third party. It was highlighted that whilst this was not included within the initial budget proposals, such matters would be monitored, and any outcomes would be reflected in the final budget proposals in February.

On the challenges being faced nationally around the Adult Social Care market, it was noted that work continued with relevant care organisations to understand and mitigate against potential risks in this area.

RESOLVED –

(a)  That it be noted that the Proposed Budget for 2025/26, as presented in the submitted report, is based upon the approval and delivery of £106.4m of directorate savings for 2025/26, £23.8m of which have already been built into the Medium Term Financial Strategy and £82.6m of which have been brought to this Board through the accompanying reports, ‘Revenue Savings Proposals for 2025/26 to 2027/28’ at its October 2024 meeting and as part of today’s agenda;

(b)  That agreement be given to consultation being undertaken on the Proposed Budget for 2025/26, which includes the proposed 2.99% increase in core Council Tax and the 1.99% increase in the Adult Social Care precept. Further to this, agreement be given that these budget proposals are submitted to Scrutiny Boards and made available for wider consultation with stakeholders;

(c)  That the provisional budget position for 2026/27 and 2027/28, be noted, and that it also be noted that further savings proposals to address the updated estimated budget gaps of £35.2m and £29.6m for 2026/27 and 2027/28 respectively will be reported to future meetings of this Board;

(d)  That should the application to form a 2025/26 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 2025/26 to 2027/28

Further to Minute No. 64, 16 October 2024, the Interim Assistant Chief Executive – Finance, Traded and Resources 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 in accordance with the Officer Delegation Scheme (Executive functions).

RESOLVED –

(a)  That the ‘Business as Usual’ savings, as presented in 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 proposal to lease out Middleton Leisure Centre to a third party, the necessary authority be delegated to the Director of City Development, to enable the Director to enter into Heads of Terms once draft terms and conditions have been reviewed and approved by the Executive Member for Adult Social Care, Active Lifestyles and Culture;

(d)  That it be noted that the 2025/26 savings proposals presented in the submitted report, combined with the savings proposals brought to the Executive Board at its October 2024 meeting, support a draft balanced budget for 2025/26 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 2025/26 and Provisional Budgets for 2026/27 and 2027/28’;

(e)  That it be noted that further savings will be required to close the Council’s estimated budget gaps in the years 2026/27 and 2027/28, 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. 91(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 8.1.1 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. 91(A) (d) and also 91(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)