Report of the Executive Director, Resources is attached

 

Contact:  James Walton.  Tel. 01743 258915

 

It was proposed by Councillor Lezley Picton, Leader and Portfolio Holder for Policy and Strategy, Improvement and Communications, and seconded by Councillor Gwilym Butler, Portfolio Holder for Finance, Corporate Resources and Communities that the report of the Executive Director, Resources, and the recommendations contained therein, be received and agreed.

 

By way of amendment Councillor Rosemary Dartnall proposed that recommendation 3.1 be amended to read:

 

“3.1. It is recommended that members consider the recommendations set out below in five separate sections (A to E). Each of the five sections will be voted on as an individual component of the financial strategy.”

 

This was seconded by Councillor Roger Evans

 

On taking a vote the amendment was not supported

 

By way of amendment Councillor Roger Evans proposed that Section A be voted on separately to Sections B to E.  This was seconded by Councillor Andy Boddington

 

On taking a vote the amendment was not supported

 

On being put to a recorded vote with 39 Members voting for, 17 against and 10 abstentions as follows:

 

For

 

Councillors Aldcroft, Anderson, Bardsley, Barrow, Biggins, Bird, Broomhall, Burchett, Butler, Carroll, Davenport, Elner, D Evans, Gill, Gittins, Harris, Hignett, Hunt, Hurst-Knight, M Jones, S Jones, Lea, Luff, Lumby, Macey, Morris, Motley, Mullock, Nellins, Picton, Potter, Price, Schofield, Thomas, Towers, Turley, Wild, B Williams and Wynn

 

Against

 

Councillors Bentick, Boddington, Davies, R Evans, Green, Hartin, Houghton, R Huffer, Kidd, Minnery, Parry, Sherrington, Taylor, Vasmer, Wagner, M Williams and Wilson

 

Abstentions

 

Councillors Bagnall, Clarke, Dartnall, Dean, J Evans, Halliday, Kerr, Moseley, Mosley and Parsons

 

RESOLVED: 

 

In respect of council tax:

 

1)    Approve a 4.99% Council tax rise (a 2.99% increase to Council tax and a 2% increase to Adult Social Care Precept) resulting in a basic amount of council tax for a Band D property of £1,806.67 in the billing authority’s area, calculated in accordance with the provisions of the Local Government Finance Act 1992 (section 42b).

 

2)    In accordance with the provisions of Section 40 (2) of the 1992 Act, approve the amount of Council Tax calculated for each category of dwelling in the billing authority’s area to be as follows:

 

Property Band	2025/26 Charge £
A	1,204.45
B	1,405.19
C	1,605.93
D	1,806.67
E	2,208.15
F	2,609.64
G	3,011.12
H	3,613.34

 

3)    approve a total precept of £219,282,837.

 

4)    approve the formal council tax resolution as set out in Appendix 4 to determine the levels of Council Tax for Shropshire Council for 2025/26.

 

 

 

 

In respect of the revenue budget:

 

5)    approve the 2025/26 gross budget of £767.007m outlined in the Budget Book at Appendix 3.

 

6)    note the key changes to the MTFS since the January update as outlined in Appendix 1:

·       the public consultation and related findings

·       the collaborative budget process and findings

·       the Financial Settlement and implications for the Council

·       the Collection Fund outturn and the impact on next year

·       the latest budget forecast for the current year and the resulting likely impact on reserves in this year and next (also included in the MTFS assumptions)

·       Inclusion of the updated Equality, Social Inclusion and Health Impact Assessment (ESHIA)

 

7)    note the alignment of this report with other reports in this agenda, including the Fees and Charges proposals, and the proposed Treasury Strategy.

 

8)    note the revised funding gap for the years 2026/27 to 2029/30.

 

9)    Continue to manage the substantial risk in delivering a balanced budget over 2025/26 by retaining the seven risk areas set out in paragraph 4.2 for monthly reporting

 

In respect of the reserves position:

 

10)  note the Statement of the Chief Financial Officer on the Robustness of Estimates and Adequacy of Reserves as set out in Section 6.1 – 6.3 of the MTFS at Appendix 1

 

11)  Approve the recommended level of general fund balances to support the 2025/26 revenue budget of £46.860m, noting that the projected balance is presently below this for 2025/26 at £32.714m.

 

12)  Note the risk assessed level and budgeted level of general reserves for the following four years and the need to profile savings delivery over this period, necessitating the recommended level of general reserves to be held at £7.214m in 2026/27, £19.214m in 2026/27, £24.214m in 2028/29 and £34.214m in 2029/30.

 

In respect of the capital programme and strategy:

 

13)  note the continued use of the Policy for Flexibility around the use of Capital Receipts as detailed in section 8.1 of the MTFS at Appendix 1 including the application made in December 2024 for a capitalisation direction for the financial year 2024/25.

 

14)  agree the adoption of the Capital Strategy 2024/25 – 2029/30 attached as Appendix 2.

 

15)  note the prioritised capital schemes identified at Appendix 2 section 8 including the need to identify and confirm funding sources for these schemes.

 

16)  agree the Capital Programme as set out in Appendix 2 section 6 and Annex B to the Capital Strategy including a virement of £5m between Capital Receipts and Community Infrastructure Levy (CIL).

 

 

17)  note that provision is included within the budget for future investment in a transformation programme.

 

18)  Note the financial implications of the four scenarios in the NWRR project as set out in Section 8.13 of the Capital Strategy (Appendix 2).

 

In respect of the Pay and Rewards Policy:

 

19)  agree the Pay and Rewards Policy for all Council staff for 2025/26 as set out in Appendix 5.