Agenda item

1.          It is recommended that the Council approve the following:

 

(a)    The revised Revenue Budget for the financial year 2023/24 and the Revenue Budget for the financial year 2024/25 as set out in the General Fund Summary (Appendix 1) which includes:

(i)      Additional spending in Adult Social Care of £6.3m and Children's Services of £5.0m

(ii)    A Covid Contingency of £5m

(iii)   No Revenue Contribution to Capital in 2023/24 or 2024/25

(b)    Any variation arising from the Local Government Finance Settlement 2024/25or any further savings made in 2023/24 arising at the year-end (after allowing for specific carry forward requests) be transferred to the Revenue Reserve for Capital, Transformation Reserve, and General Reserves with the level of each transfer to be determined by the S.151 Officer.

(c)    That the level of Council Tax be increased by 2.99% for general purposes in accordance with the referendum threshold^[1] for 2024/25 announced by Government (as calculated in Appendix 2)

(d)    That the level of Council Tax be increased by a further 2.0% beyond the referendum threshold (as calculated in Appendix 2) to take advantage of the flexibility offered by Government to implement a "Social Care Precept"; and that in accordance with the conditions of that flexibility, the full amount of the associated sum generated of £1,977,705 is passported direct to Adult Social Care

(e)    That the amounts set out in Appendix 2 be now calculated by the Council for the financial year 2024/25 in accordance with Section 31 and Sections 34 to 36 of the Local Government Finance Act 1992

(f)     The S.151 Officer be given delegated authority to implement any variation to the overall level of Council Tax arising from the final notification of the Hampshire Police & Crime Commissioner, Hampshire & Isle of Wight Fire & Rescue Authority and Parish and Town Council precepts, and amend the calculations set out in Appendix 2 accordingly

(g)    The savings proposals for each Portfolio amounting, in total, to £2.75m for 2024/25and continuing into future years as set out on the next page:

 

Portfolio	Controllable Budget	Savings Proposal
	£	£	%
Adult Social Care & Public Health*	57,782,000	919,900	1.6%
Children's Services, Education & Corporate Functions*	41,238,000	207,000	0.5%
Climate Change, Biosphere & Waste	6,777,000	68,000	1.0%
Deputy Leader - Housing & Finance	8,292,000	107,100	1.3%
Economy, Regeneration, Culture & Leisure	3,052,000	24,000	0.8%
Leader - Transport Infrastructure, Highways PFI and Transport Strategy, Strategic Oversight and External Partnerships**	13,658,000	1,167,000	8.5%
Planning, Coastal Protection & Flooding	2,361,000	0	0.0%
Regulatory Services, Community Protection & ICT	11,340,000	257,000	2.3%
Grand Total	144,500,000	2,750,000	1.9%
* Excludes the additional funding passported through to Adult Social Care of £6.3m (which if included would result in an overall increase of 9.4%) and the additional funding for Children's Services, Education & Lifelong Skills of £5.0m (which if included would result in an overall increase of 15.3%)
** Excludes £19.4m of PFI grant funding, on a gross expenditure basis the saving amounts to 3.5%

 

(h)       Directors be instructed to start planning how the Council will achieve the savings requirements of £3.0m for the 3 year period 2025/26 to 2027/28 and that this be incorporated into Service Business Plans

(i)         The minimum level of Revenue Balances as at 31 March 2025, predicated on the approval of £2.75m savings in 2024/25be set at £8.0m to reflect the known and expected budget and financial risks to the Council

(j)         Members have regard for the "Statement of the Section 151 Officer in accordance with the Local Government Act 2003"

(k)       The Capital Programme 2023/24 to 2028/29 set out in Appendix 5 which includes all additions, deletions and amendments for slippage and re-phasing

(l)         The new Capital Investment Proposals ("New Starts") - 2024/25set out in Appendix 4 be reflected within the recommended Capital Programme 2023/24 to 2028/29 and be funded from the available Capital Resources

(m)     The allocation of Disabled Facilities Grants be made to the Better Care Fund, and reflected within the recommended Capital Programme 2023/24 to 2028/29

(n)       The S.151 Officer be given delegated authority to determine how each source of finance is used to fund the overall Capital Programme and to alter the overall mix of financing, as necessary, to maximise the flexibility of capital resources used and minimise the ongoing costs of borrowing to the Council

(o)       That the S.151 Officer in consultation with the Leader of the Council be given delegated authority to release capital resources held back for any contingent items that might arise, and for any match funding requirements that may be required of the Council in order to secure additional external capital funding (e.g. bids for funding from Government or any other external source).

(p)       The Capital Strategy 2024/25, including the Minimum Revenue Position Statement contained therein (Appendix 6)

(q)       The Investment Strategy (Non-Treasury Investments) 2024/25 (Appendix 7)

2.           It is recommended that the Council note the following in respect of the Council's Budget: 

 

(a)       The Revenue Budget 2024/25as set out in Appendix 1 has been prepared on the basis of a 4.99% increase in Council Tax, any reduction from the overall 4.99% Council Tax increase proposed will require additional savings of £988,900 for each 1% reduction in order for the Budget 2024/25 to be approved

(b)       The Revenue Forecasts for 2025/26 onwards as set out in the section entitled "Revenue Forecasts 2025/26 to 2027/28" and Appendix 1

(c)       The estimated Savings Requirement of £3.0m for the three year period 2025/26 to 2027/28, for financial and service planning purposes, be phased as follows:

Financial Year	In Year Savings Requirement £m	Cumulative Saving   £m
2025/26	1.0	1.0
2026/27	1.0	2.0
2027/28	1.0	3.0

 

(d)       The Transformation Reserve held to fund the upfront costs associated with Spend to Save Schemes and Invest to Save Schemes holds a very modest uncommitted balance of £3.2m and will only be replenished from contributions from the Revenue Budget and an approval to the transfer of any further savings at year end

(e)       Should the Council elect to reduce the level of savings below £2.75m in 2024/25 (and £1.0m p.a. thereafter), the Council's financial risk will increase and therefore the minimum level of General Reserves held will also need to increase in order to maintain the Council's financial resilience

(f)         The Council Tax base for the financial year 2024/25 will be 54,407.3 [item T in the formula in Section 31 B(1) of the Local Government Finance Act 1992, as amended (the “Act”)].

(g)       The Council Tax element of the Collection Fund for 2023/24 is estimated to be in surplus by £1,483,500 which is shared between the Isle of Wight Council (85.3%) and the Police & Crime Commissioner (11.1%) and the Hampshire & Isle of Wight Fire & Rescue Authority (3.6%)

(h)       The Business Rate element of the Collection Fund for 2023/24 is estimated to be in deficit by £3,354,365 of which is shared between the Isle of Wight Council (49%), the Hampshire & Isle of Wight Fire & Rescue Authority (1%) and the Government (50%)

(i)         The Retained Business Rate income^[2]for 2024/25 based on the estimated Business Rate element of the Collection Fund deficit as at March 2024, the Non Domestic Rates poundage for 2024/25and estimated rateable values for 2024/25has been set at £43,763,020.

(j)         The Equality Impact Assessment (attached at Appendix 8)

A 2024/25 Budget and Council Tax setting report had been received from the Leader (with responsibility for Transport and Infrastructure, Highways PFI and Transport Strategy, Strategic Oversight and External Partnerships). Budget amendments had been submitted from Cllrs Quigley and Brodie, the Liberal Democrat Group and jointly from the Conservative group and Empowering Islanders group. These had been accepted by the Section 151 Officer as being legal and presented a balanced budget.

 

The Leader moved all budget proposals which was duly seconded.

 

The Leader was invited to speak regarding the Cabinet budget proposals and the submitted budget amendment proposals.

 

An amendment to the proposal attached as Appendix 1 (and forming part of these minutes) was moved by Cllr R Quigley and Cllr G Brodie.

 

An amendment to the proposal attached as Appendix 2 (and forming part of these minutes) was moved by Cllr A Garratt.

 

An amendment to the proposal attached as Appendix 3 (and forming part of these minutes) was moved by Cllr C Mosdell and Cllr C Jarman.

 

Other Councillors of the Council also made comment on all the budget proposals.

 

The Leader (with responsibility for Transport and Infrastructure, Highways PFI and Transport Strategy, Strategic Oversight and External Partnerships), and the proposers of the amendments then summed up.

 

A named vote was taken on Cllr R Quigley and Cllr G Brodie’s budget amendment, the results were as follows:

 

For (19)

 

Cllrs D Andre, J Bacon, C Critchison, G Brodie, I Dore, R Downer, P Fuller, A Garratt, J Jones-Evans, P Jordan, J Lever, M Lilley, K Love, K Lucioni, L Peacey Wilcox, R Quigley, S Redrup, I Stephens, N Stuart,

 

Against (20)

 

Cllrs D Adams, M Beston, E Blake, P Brading, V Churchman, W Drew, S Ellis, S Hendry, C Jarman, J Medland, C Mosdell, J Nicholson, M Oliver, T Outlaw, M Price, C Quirk, R Redrup, J Robertson, P Spink, I Ward

 

The amendment fell.

 

A named vote was taken on the Liberal Democrat’s budget amendment, the results were as follows:

 

For (17)

 

Cllrs D Andre, J Bacon, C Critchison, I Dore, R Downer, P Fuller, A Garratt, J Jones-Evans, P Jordan, J Lever, M Lilley, K Love, K Lucioni, L Peacey Wilcox, S Redrup, I Stephens, N Stuart

 

Against (22)

 

Cllrs D Adams, M Beston, E Blake, P Brading, G Brodie, V Churchman, W Drew, S Ellis, S Hendry, C Jarman, J Medland, C Mosdell, J Nicholson, M Oliver, T Outlaw, M Price, R Quigley, C Quirk, R Redrup, J Robertson, P Spink, I Ward

 

The amendment fell.

 

A named vote was taken on the Conservative and Empowering Islanders budget amendment, the results were as follows:

 

For (20)

Cllrs D Adams, M Beston, E Blake, P Brading, V Churchman, W Drew, S Ellis, S Hendry, C Jarman, J Medland, C Mosdell, J Nicholson, M Oliver, T Outlaw, M Price, C Quirk, R Redrup, J Robertson, P Spink, I Ward

 

Against (19)

Cllrs D Andre, J Bacon, C Critchison, G Brodie, I Dore, R Downer, P Fuller, A Garratt, J Jones-Evans, P Jordan, J Lever, M Lilley, K Love, K Lucioni, L Peacey Wilcox, R Quigley, S Redrup, I Stephens, N Stuart

 

The amendment was carried

 

A named vote was taken on the substantive budget incorporating the amendment, the results were as follows:

 

For (30)

Cllrs D Adams, D Andre, J Bacon, M Beston, E Blake, P Brading, V Churchman, I Dore, R Downer, W Drew, S Ellis, P Fuller, S Hendry, C Jarman, J Jones-Evans, P Jordan, J Lever, K Lucioni, J Medland, C Mosdell, J Nicholson, M Oliver, T Outlaw, L Peacey Wilcox, C Quirk, R Redrup, J Robertson, P Spink, I Stephens, I Ward

 

Against (8)

Cllrs G Brodie, A Garratt, M Lilley, K Love, M Price, S Redrup, N Stuart, R Quigley

 

Abstain (1)

Cllr C Critchison

 

RESOLVED:

 

THAT Council approved the following:

 

a)  (amended recommendation) The revised Revenue Budget for the financial year 2023/24 and the Revenue Budget for the financial year 2024/25 as set out in the General Fund Summary (attached as Appendix 1 amended) which includes:

 

(i) Additional spending in Adult Social Care of £6.3m and Children's Services of £5.0m

(ii) A Covid Contingency of £5m

(iii) No Revenue Contribution to Capital in 2023/24 or 2024/25

 

Appendix 1 (Amended) includes the following changes listed in the tables below:

 

i) Additional Savings - Reductions to Budget Estimates

Ref No.	Impact on Level of Service & Service Outcomes	2024/25	2025/26 & Future Years
		£	£
Children's Services & Corporate Functions
New	Contact Centre - Reduction of 4 hours per week from Monday - Friday opening times of 9am - 5pm determined by time of least demand	(8,400)	(8,400)
Sub-Total		(8,400)	(8,400)
Deputy Leader, Housing & Finance
New	Withdrawal from Transformation Reserve	(630,000)	0
Sub-Total		(630,000)	0
Total		(638,400)	(8,400)

 

 

Additional Costs - Additions to Budget Estimates

Ref No.	Increases to Portfolio Budgets	2024/25 £		2025/26 & Future Years
		£		£
Children's Services & Corporate Functions
12	Re-instate Contact Centre Saturday Service 9am -1 pm	8,400		8,400
New	Feasibility Study for an On-Island residential facility for Children & Young people	30,000
	Sub-Total	38,400		8,400
Adult Social Care & Public Health
New	Feasibility Study for Digital Technological Aids for Adult Social Care	30,000
	Sub-Total	30,000		0
Deputy Leader, Housing & Finance
New	Feasibility Study for Prefabricated Relocatable Homes	50,000
New	Feasibility Study for installation of Solar Panels over major carparks and IW Council buildings	20,000
	Sub-Total	70,000	0
	Total	138,400	8,400

 

(a)    Any variation arising from the Local Government Finance Settlement 2024/25or any further savings made in 2023/24 arising at the year-end (after allowing for specific carry forward requests) be transferred to the Revenue Reserve for Capital, Transformation Reserve, and General Reserves with the level of each transfer to be determined by the S.151 Officer.

(b)    That the level of Council Tax be increased by 2.99% for general purposes in accordance with the referendum threshold^[1] for 2024/25 announced by Government (as calculated in Appendix 2)

(c)    That the level of Council Tax be increased by a further 2.0% beyond the referendum threshold (as calculated in Appendix 2) to take advantage of the flexibility offered by Government to implement a "Social Care Precept"; and that in accordance with the conditions of that flexibility, the full amount of the associated sum generated of £1,977,705 is passported direct to Adult Social Care

(d)    That the amounts set out in Appendix 2 be now calculated by the Council for the financial year 2024/25 in accordance with Section 31 and Sections 34 to 36 of the Local Government Finance Act 1992

(e)    The S.151 Officer be given delegated authority to implement any variation to the overall level of Council Tax arising from the final notification of the Hampshire Police & Crime Commissioner, Hampshire & Isle of Wight Fire & Rescue Authority and Parish and Town Council precepts, and amend the calculations set out in Appendix 2 accordingly

(f)     The savings proposals for each Portfolio amounting, in total, to £2.75m for 2024/25and continuing into future years as set out on the next page:

 

 

Portfolio	Controllable Budget	Savings Proposal
	£	£	%
Adult Social Care & Public Health*	57,782,000	919,900	1.6%
Children's Services, Education & Corporate Functions*	41,238,000	207,000	0.5%
Climate Change, Biosphere & Waste	6,777,000	68,000	1.0%
Deputy Leader - Housing & Finance	8,292,000	107,100	1.3%
Economy, Regeneration, Culture & Leisure	3,052,000	24,000	0.8%
Leader - Transport Infrastructure, Highways PFI and Transport Strategy, Strategic Oversight and External Partnerships**	13,658,000	1,167,000	8.5%
Planning, Coastal Protection & Flooding	2,361,000	0	0.0%
Regulatory Services, Community Protection & ICT	11,340,000	257,000	2.3%
Grand Total	144,500,000	2,750,000	1.9%
* Excludes the additional funding passported through to Adult Social Care of £6.3m (which if included would result in an overall increase of 9.4%) and the additional funding for Children's Services, Education & Lifelong Skills of £5.0m (which if included would result in an overall increase of 15.3%)
** Excludes £19.4m of PFI grant funding, on a gross expenditure basis the saving amounts to 3.5%

 

(g)    (amended recommendation) Directors be instructed to start planning how the Council will achieve the savings requirements of £9m for the 3 year period 2025/26 to 2027/28 and that this be incorporated into Service Business Plans

(h)    The minimum level of Revenue Balances as at 31 March 2025, predicated on the approval of £2.75m savings in 2024/25be set at £8.0m to reflect the known and expected budget and financial risks to the Council

(i)      Members have regard for the "Statement of the Section 151 Officer in accordance with the Local Government Act 2003"

(j)      (amended recommendation) The Capital Programme 2023/24 to 2028/29 set out in Appendix 5 (amended) which includes all additions, deletions and amendments for slippage and re-phasing

(k)    (amended recommendation) The new Capital Investment Proposals ("New Starts") - 2024/25set out in Appendix 4 be reflected within the recommended Capital Programme 2023/24 to 2028/29 and be funded from the available Capital Resources, be mended to reflect the following changes:

SchemeDescription-Additions&Reductions		Increase / (Decrease)inCorporate Resources	Total CorporateResources Allocated
		£	£
AdditionalCapital SchemeProposals (New):
Economy, Regeneration,Culture &Leisure
New	Supporting TourismInfrastructure Fund	200,000	200,000
	Sub-Total	200,000	200,000
Children's Services, Education& CorporateFunctions
New	On-Island Residential facility for Children & Young people - subjecttofinancialviabilitybeingestablishedandagreed by S151Officer	5,000,000	5,000,000
	Sub-Total	5,000,000	5,000,000
Deputy Leader,Housing &Finance
New	Installation ofSolar Panelsover majorcarparks andIW Councilbuildings -subject tofinancial viabilitybeing establishedand agreedbyS151 Officer	3,000,000	3,000,000
	Sub-Total	3,000,000	3,000,000
Leader, Transport& Infrastructure,Highways PFI& TransportStrategy, StrategicOversight & External Partnerships
New	OptionsappraisalformaintainingtheA3055asaviableroute for the wholelength betweenLuccombe andFreshwater	250,000	250,000
	Sub-Total	250,000	250,000
Adult SocialCare &Public Health
New	Digital TechnologicalAids forAdult SocialCare -subject tobusinesscaseandfinancialviabilitybeingestablishedand agreedbyS151 Officer	500,000	500,000
	Sub-Total	500,000	500,000
	TotalAdditions	8,950,000	8,950,000
Reductions/ Deletionsto ProposedCapital Schemes:
Leader,Transport &Infrastructure, HighwaysPFI &Transport Strategy,Strategic Oversight& External Partnerships
21	Re-allocate fundingfrom DfT LocalTransport CapitalFunding	(250,000)	720,000
	Sub-Total	(250,000)	720,000
Economy, Regeneration,Culture &Leisure
124	Re-allocate fundingfrom Place/TownsInitiative Fund	(200,000)	0
	Sub-Total	(200,000)	0
	Total Reductions/Deletions	(450,000)	720,000
	TotalOverallChange	8,500,000

 

(l)      The allocation of Disabled Facilities Grants be made to the Better Care Fund, and reflected within the recommended Capital Programme 2023/24 to 2028/29

(m)  The S.151 Officer be given delegated authority to determine how each source of finance is used to fund the overall Capital Programme and to alter the overall mix of financing, as necessary, to maximise the flexibility of capital resources used and minimise the ongoing costs of borrowing to the Council

(n)    That the S.151 Officer in consultation with the Leader of the Council be given delegated authority to release capital resources held back for any contingent items that might arise, and for any match funding requirements that may be required of the Council in order to secure additional external capital funding (e.g. bids for funding from Government or any other external source).

(o)    The Capital Strategy 2024/25, including the Minimum Revenue Position Statement contained therein (Appendix 6)

(p)    The Investment Strategy (Non-Treasury Investments) 2024/25 (Appendix 7)

(q)    (amended recommendation) Thatdelegated authoritybe givento theS.151 Officerto makeany necessarychanges toeither theInvestment Strategyor theCapital Strategyin accordancewith theproposed changes to the capitalprogramme setout inthis Amendment.

(q)    (additional recommendation)That Cabinet be requested to undertake a review into any contractually uncommittedCapital Schemes(excluding anyschemes necessaryfor thedelivery ofstatutory services) to assess their ongoing level of priority and value for money in the context ofthe need to make innovations in the delivery of statutory services and the chronicshortage ofaffordable housing;this tobe scrutinisedby thePolicy andScrutiny Committee (orany successorbody)

 

(r)   (additional recommendation) That Cabinet are requested, with immediate effect, to ensure that when evaluating "BestConsideration" for disposals of IoW Council owned land, significant weight should beassigned to bids from organisations that can deliver affordable housing and from bidsfrom Town & Parish Councils for local infrastructure development; where alternative bidsare preferred, fulljustification shouldbe provided.

 

(u)(additional recommendation) That Cabinet are requested to adopt a simplified and less onerous application processfor access to the Local Council Tax Support - Exceptional Hardship Fund and thatoptions onhow this can beprovisioned arebrought forward.

 

1.           It is recommended that the Council note the following in respect of the Council's Budget: 

 

(a)    The Revenue Budget 2024/25 as set out in Appendix 1 has been prepared on the basis of a 4.99% increase in Council Tax, any reduction from the overall 4.99% Council Tax increase proposed will require additional savings of £988,900 for each 1% reduction in order for the Budget 2024/25 to be approved

(b)    The Revenue Forecasts for 2025/26 onwards as set out in the section entitled "Revenue Forecasts 2025/26 to 2027/28" and Appendix 1

(c)    The estimated Savings Requirement of £3.0m for the three year period 2025/26 to 2027/28, for financial and service planning purposes, be phased as follows:

Financial Year	In Year Savings Requirement £m	Cumulative Saving   £m
2025/26	1.0	1.0
2026/27	1.0	2.0
2027/28	1.0	3.0

 

(d)    The Transformation Reserve held to fund the upfront costs associated with Spend to Save Schemes and Invest to Save Schemes holds a very modest uncommitted balance of £3.2m and will only be replenished from contributions from the Revenue Budget and an approval to the transfer of any further savings at year end

(e)    Should the Council elect to reduce the level of savings below £2.75m in 2024/25 (and £1.0m p.a. thereafter), the Council's financial risk will increase and therefore the minimum level of General Reserves held will also need to increase in order to maintain the Council's financial resilience

(f)     The Council Tax base for the financial year 2024/25 will be 54,407.3 [item T in the formula in Section 31 B(1) of the Local Government Finance Act 1992, as amended (the “Act”)].

(g)    The Council Tax element of the Collection Fund for 2023/24 is estimated to be in surplus by £1,483,500 which is shared between the Isle of Wight Council (85.3%) and the Police & Crime Commissioner (11.1%) and the Hampshire & Isle of Wight Fire & Rescue Authority (3.6%)

(h)    The Business Rate element of the Collection Fund for 2023/24 is estimated to be in deficit by £3,354,365 of which is shared between the Isle of Wight Council (49%), the Hampshire & Isle of Wight Fire & Rescue Authority (1%) and the Government (50%)

(i)      The Retained Business Rate income^[2]for 2024/25 based on the estimated Business Rate element of the Collection Fund deficit as at March 2024, the Non Domestic Rates poundage for 2024/25and estimated rateable values for 2024/25has been set at £43,763,020.

The Equality Impact Assessment (attached at Appendix 8)