The Budget Council has decided to approve a Total Net Revenue Budget Requirement of £249.8m for the financial year 2025/26 based on the budget proposals submitted.

URL: https://calderdale.moderngov.co.uk/ieDecisionDetails.aspx?ID=323

Decision Maker: Budget Council

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: It was moved by Councillor Patient,                                            Seconded by Councillor Dacre,   that having considered the update on the revenue budget forecast and the responses to consultations on the proposals adopted by Cabinet on 13th January 2025 for consultation purposes, the Council on 24th February 2025 be recommended to approve a Total Net Revenue Budget Requirement of £249.8m (after the use of reserves) for the financial year 2025/26 based on the budget proposals now submitted and set out within the report be approved.   Proposed Budget Summary and Council Tax Requirement 2025/26       Provisional Budget Summary and Council Tax Requirement 2026/27     Provisional Budget Summary and Council Tax Requirement 2027/28     It was moved as an AMENDMENT by Councillor Leigh MBE, Seconded by Councillor Blagbrough,   with the amendments as set out in the table below.   Conservative Budget: Putting Residents First and Protecting the Local Economy   The Conservative Budget achieves two key objectives - it prioritises the needs of local residents and responds to a challenging economic climate. This is done by limiting the Council Tax rises to prevent further financial strain on residents during this difficult time, and making tough but necessary cost-saving decisions to build the Council’s financial resilience. This includes supporting the local economy in the short term by proposing to stop Labour’s planned increase in parking charges and laying the foundation for long term economic growth through our education proposals. Therefore, this Conservative Budget offers Calderdale’s Residents a responsible and effective alternative to the Labour Budget, which costs them more and imposes further cuts to services.   Local Economy   In Calderdale, Parking Charges have increased significantly above the rate of inflation in recent years, with the Labour Cabinet recently deciding to impose a 400% increase to on-street parking Charges in Brighouse and Hebden Bridge. This follows their damaging policy in 2020 to increase parking charges to 8 pm from 6 pm across Halifax, Hebden Bridge, Sowerby Bridge, and West Vale. Now the Cabinet are planning further targeted increases that will raise £700,000. The Conservative Budget removes this increase to ensure residents and visitors can spend more in supporting our local economy. This is crucial because the previous Conservative government invested over £50 million to revitalise town centres across Calderdale, therefore these excessive parking charges risk undermining this massive investment by deterring residents and visitors from using our town centres. Alongside this, we are reintroducing funding for local Christmas trees, lighting, and local switch-on events, which were removed last year. This will help our local economy by making our towns even more attractive during the Christmas period.   Education   Education is another fundamental element to help drive the success of our local economy and reduce inequality. In 2024, Calderdale Council published its new Inclusive Economy Strategy, but despite the strategy acknowledging that adults in Calderdale are below national averages in qualifications, and above the national average for residents having no qualifications, the document only mentions education once. The Conservative Budget aims to address this glaring oversight by developing a comprehensive strategy through a review of the Adult Education System in Calderdale. The purpose will be to identify opportunities, and to increase the number of academic and technical qualifications held by local residents. In parallel, the Conservative Group is committed to building at least one of the Primary Schools in the Garden Communities across Rastrick and Brighouse and would prioritise this investment in future budgets beyond this MTFP period. The Cabinet recently cut the funding because their analysis shows that there will be a surplus of 373 primary School places in East Calderdale, but this excludes the anticipated growth in demand for school places from the 3000 homes to be built across the Garden Communities, which projects a need for 750 new school places according to the Department for Education guidelines.   Budget Savings   The Conservative Budget prioritises responsible financial management to maximise value for Calderdale taxpayers, which requires implementing cost-saving measures to ensure every pound is used effectively. One key target is to reduce the Council's Senior Management and Workforce size because current total employment expenditure stands at £114.4m for the year, which represents 50% of the total Budget - this burden on local taxpayers must be reduced, and annual small reductions in the workforce will greatly increase the productivity of the Council. Furthermore, a comprehensive Review of Council Spending and Commercialisation opportunities will be undertaken. This Review will look at the current allocation of funds to Local and National organisations and ensure these expenditures deliver tangible benefits to Calderdale residents. This will enable local residents to understand how their Council Tax is being used. We will also focus on maximising the revenue potential of public assets. For example, Halifax Town Hall will be made more readily available for private hire events, which will generate income for the Council.   Council Tax & Reserves   Labour-run Calderdale Council has consistently increased Council tax whilst simultaneously reducing public services. Whilst fiscal responsibility and reducing financial pressures on the local economy are a priority of the Conservative Budget. Given challenging economic conditions including increased National Insurance contributions, rising unemployment, and inflation rising again to 3%, it is imperative that Calderdale Council does not impose unnecessary financial burdens on residents. Therefore, in the Conservative Budget, Council Tax increases are lower, and this will provide financial relief for residents, and the Council’s Reserves are strengthened which will build our financial resilience and safeguard against future economic shocks. This is achievable because of the savings proposals put forward, and a genuine ambition to improve productivity.   National Context   This budget is produced under the context that the Labour Government has taken a wrecking-ball to the British Economy. This is despite them inheriting the fastest growing economy in the G7, inflation back at the Bank of England target of 2% and employment levels at record highs – We are now on the verge of stagflation after just 7 months in power. The most recent growth figure from quarter 4, 2024, show the economy grew by 0.1 per cent, whilst inflation has increased to 3%. Furthermore, economic growth forecasts have been halved by the Bank of England to 0.75% for 2025, jobs are being cut at the fastest rate in nearly four years, and excluding the pandemic, these are the worst job-losses since the 2009 financial crisis. This all boils down to some mystifying decisions by Labour since they took office which included the over £40 billion in tax rises - History shows that tax rises of this magnitude never lead to sustainable economic growth.   Appendix 1 - Conservative Group Budget Proposals   The Group is planning to balance the Council’s budget next year with the following measures.   1.            For 2025/26, a general Council Tax increase of 1.5% which is below the maximum allowable under the referendum limit of 2.99% along with a 2% increase in the Adult Social Care precept.  For 2026/27 and 2027/28, in-line with the local government core spending power assumptions, it is proposed that general Council Tax will be increased by 2.99% and Adult Social Care precept by 2% which is the maximum allowable under current referendum limits.   2.            A range of growth proposals, budget reductions, cost savings, flexible use of external funding and income from fees and charges are being proposed to bring the net operating costs in line with spending power.   3.            The growth and savings proposals are summarised below, with more detail contained within the Directorate budget sections that follow.     Growth/Investment Proposals     Savings Proposals     Proposed Budget Summary and Council Tax Requirement 2025/26     Provisional Budget Summary and Council Tax Requirement 2026/27     Provisional Budget Summary and Council Tax Requirement 2027/28     Councillors Swift MBE, Courtney, Tremayne, Bellenger, Hutchinson, Thompson, Issott, Wilkinson, Durrans, Sutherland, Barnes, Blagbrough, Foster, Mrs Carter, Hunt, Dacre, Holdsworth, Leigh MBE and Patient commented on the Amendment   The AMENDMENT on being put to the vote was not carried.   Under the provisions of Council Procedure Rule 18.6, and as required by the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken.   The following 11 Members voted for the AMENDMENT:   J Atkinson D Kirton H Blagbrough S Leigh MBE Mrs G Carter B Monteith R Dickenson C Pillai P Hunt G Robinson F Issott       The following 34 Members voted against the AMENDMENT:   I Ahmed P Judge S Ashton R Khan M Barnes K Kimber P Bellenger A Parsons-Hulse H Brundell S Patient S Cairney C Prashad S Courtney H Rivron S Dacre T Swift MBE D Durrans S Taylor A Evans J Timbers M Fazal J Thompson D Foster K Thornham A Gallagher D Tremayne E Hey D Veitch M Hey L Webster S Holdsworth A Wilkinson C Hutchinson A White   The following 2 Members abstained from voting:   The Mayor, A Kingstone D Sutherland   It was moved as an AMENDMENT by Councillor M Hey, Seconded by Councillor E Hey,   with the amendments as set out in the table below.   Green Party Leader’s Budget Statement   At the recent emergency council meeting there was a charged debate about the Council Tax discount reduction that the Cabinet was proposing for the next financial year. During the debate many members said that alternatives had been exhausted. Green Party councillors have taken up the challenge to prove that's not the case.   Our amendment details actions that will significantly reduce council spend over the next three years and allow us to go back to treating low-income households fairly. Indeed, the scale of the savings means that the council could also end cuts to universal services for residents whilst also investing in our path to net zero.   The council savings we're proposing are:   1)         Reduction of Capital Investment funded through borrowing by re-prioritisation of schemes;   2)         Effective use of vacancy management including reducing agency costs  in the council by 8% every year of the plan;   3)         Reduce consulting costs by 5% every year of the plan;   4)         End the subsidisation of the Piece Hall from 2026/27; and   5)         Reduce Councillor Allowances by 10% from 2026/27.   Taken together, these decisions will save £330,000 in 25/26 rising to £2.7 million in 27/28.   By taking this action, the Council will then be able to avoid any further cuts to universal services, will be able to supercharge the fight against Climate Change and will also reduce the burden on council taxpayers across the Borough. Our proposals are:   1)         There should be no cuts to recycling and highways spending across the plan;   2)         No cuts to the funding of Shibden Hall;   3)         A £400,000 per annum investment in climate change activity from 26/27, with the aim of setting up an investment scheme (for local people) that can drive tangible actions that reduce energy costs and carbon emissions. a.         For example, setting up an investment scheme that could attract even 1% of Calderdale residents’ cash savings could create a c£30 million fund to invest in projects that will give a return for investors and accelerate the energy transition. b.         In this way, a small amount of funding could potentially have a transformative effect on Calderdale's fight against climate change – and by focusing our efforts on areas of high deprivation and inequality, resident’s fuel bills can be reduced, and cash released into the local economy. As such, this proposal addresses all three of the Council's priorities.   4)         A reduction in the Council Tax increase for all bill payers to 4.5% in 2027/28, with the aim that this is the first step on a path to end inflation-busting increases as soon as practicable; and   5)         Reversing (in 26/27) the 60% increase in council tax for low-income households introduced by the Labour in 2025/26.   Overall, this amendment begins the realignment of council objectives to the priorities of residents in Calderdale, who want to see their services protected and their council tax bills brought under control. Passing the amendment is a vital step in reducing inequality in Calderdale and will build trust between the Council and its residents as we move into the second half of the decade.   Councillor Martin Hey   Leader, Calderdale Green Party   Appendix 1 – Green Party Budget Proposals   The Group is planning to balance the Council’s budget next year with the following measures.   1.            For 2025/6 and 2026/27, in-line with the local government core spending power assumptions, it is proposed that general Council Tax will be increased by 2.99% and Adult Social Care precept by 2% which is the maximum allowable under current referendum limits. For 2027/28, a general Council Tax increase of 2.5% which is 0.49% below the maximum allowable under the referendum limit of 2.99% along with a 2% increase in the Adult Social Care precept.    2.            A range of growth proposals, budget reductions, cost savings, flexible use of external funding and income from fees and charges are being proposed to bring the net operating costs in line with spending power.   3.            The growth and savings proposals are summarised below, with more detail contained within the Directorate budget sections that follow.   Growth/Investment Proposals     Savings Proposals     Proposed Budget Summary and Council Tax Requirement 2025/26     Provisional Budget Summary and Council Tax Requirement 2026/27     Provisional Budget Summary and Council Tax Requirement 2027/28     Councillors Bellenger, Brundell, Mrs Carter, Leigh MBE, Issott, M Hey, Dacre and Patient commented on the Amendment.   The AMENDMENT on being put to the vote was not carried.   Under the provisions of Council Procedure Rule 18.6, and as required by the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken.   The following 3 Members voted for the AMENDMENT:   E Hey D Sutherland M Hey       The following 44 Members voted against the AMENDMENT:   I Ahmed R Khan S Ashton K Kimber J Atkinson D Kirton M Barnes S Leigh MBE P Bellenger B Monteith H Blagbrough A Parsons-Hulse H Brundell S Patient S Cairney C Pillai Mrs G Carter C Prashad S Courtney H Rivron S Dacre G Robinson R Dickenson S Saghir D Durrans T Swift MBE A Evans S Taylor M Fazal J Timbers D Foster J Thompson A Gallagher K Thornham S Holdsworth D Tremayne P Hunt D Veitch C Hutchinson L Webster F Issott A Wilkinson P Judge A White   The following Member abstained from voting:   The Mayor, A Kingstone     The SUBSTANTIVE RECOMMENDATION on being put to the vote was carried.   Councillors Bellenger, Thompson, Mrs Carter, Prashad, Courtney, Foster, Hunt, Wilkinson, Blagbrough, Sutherland, Dacre and Patient commented on the Substantive Recommendation.   Under the provisions of Council Procedure Rule 18.6, and as required by the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken.   The following 26 Members voted for the SUBSTANTIVE RECOMMENDATION:   I Ahmed R Khan S Ashton K Kimber M Barnes S Patient H Brundell H Rivron S Cairney T Swift MBE S Courtney S Taylor S Dacre J Timbers D Durrans J Thompson M Fazal K Thornham D Foster D Tremayne A Gallagher D Veitch C Hutchinson L Webster P Judge A Wilkinson   The following 21 Members voted against the SUBSTANTIVE RECOMMENDATION:   J Atkinson D Kirton P Bellenger S Leigh MBE H Blagbrough B Monteith Mrs G Carter A Parsons-Hulse R Dickenson C Pillai A Evans C Prashad E Hey G Robinson M Hey S Saghir S Holdsworth D Sutherland P Hunt A White F Issott     The following Member abstained from voting:   The Mayor, A Kingstone     RESOLVED that:   (a)            the appended 2025/26 to 2027/28 Cabinet budget proposals be approved;  and   the revised position presenting in the Medium-Term Financial Plan 2025-28 outlined in annex A of the Director, Resources and Transformation written report be noted.

Date of Decision: February 24, 2025