URL: https://barnet.moderngov.co.uk/ieDecisionDetails.aspx?ID=9474

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: Councillor Ammar Naqvi, Cabinet Member for Financial Sustainability and Reducing Poverty introduced and summarised the report.   The Leader proposed an amendment to recommendation 11 which was seconded and agreed by Members as set out below.   DECISION: RESOLVED that Cabinet:   Noted the financial issues facing councils nationally and across London;  Noted the updated MTFS attached as Appendix A and the underlying assumptions as set out in this report; Noted the updates to the 2025/26 MTFS and the estimate of the 2026-30 budget gaps, and that support is likely to be required from central government to set a balanced budget in 2025/26; Noted that the MTFS assumes that the Eight Authority Business Rates Pool will continue for 2025/26 and that £2.7m benefit has been assumed in the MTFS; Delegated authority to the Executive Director of Resources (S151 Officer) to take all necessary actions to participate in and execute the Eight Authority Business Rates Pool agreement; Noted the plans to address the remaining budget gap for 2025/26 including the draft growth, savings and income raising proposals set out in Appendices B and C; Approved delegated authority to the Executive Director of Resources (S151 Officer) to amend the MTFS in line with the 2025/26 Provisional Local Government Finance Settlement due on 19th December 2024; Noted the council’s reserves position as detailed in paragraphs 3.27-3.32, and in particular notes that the £40m minimum earmarked reserves policy has already been breached and that, if the 2024/25 Q2 forecast overspend materialises, the forecast year-end useable reserves balance is c£1m. This is in addition to general fund balances of £15m; Regarding consultation on budget and council tax proposals:   Agreed to consult on the use of the council’s flexibility to raise the level of General Council Tax by 2.98% in 2025/26; Agreed to consult on the use of the council’s flexibility to apply a 2.00% Social Care Precept, to help fund pressures in social care; Noted that the council’s budget consultation will be launched in the week beginning 9th December 2024 after which the budget, with a cumulative equalities impact assessment, will be considered by Cabinet on 5th February 2025, before it is referred to Full Council on 25th February 2025; 12.Approved reduction of Area Committee budget allocation for 24/25 by 15% to fund existing projects that are in accordance with the regulations and eligible for NCIL funding as set out in section 3.33- 3.34 of this report and approves additions to capital programme set out in Appendix D. 13.Cabinet approved the delegation of the virement for 24/25 pay inflation from the contingency budget to departments to the Interim Executive Director of Resources (s151 Officer).   The report set out the options considered, if any, and the reasons for the recommendations and the decision.  

Date of Decision: December 5, 2024