Decision details

Reconciling Policy, Performance and Resources (RPPR): Draft Council Plan

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

 

To ask Cabinet to approve the draft Council Plan, Council Tax levels, Revenue Budget and Capital Programme for 2025/26 for recommendation to the County Council (including Savings Proposals, Equality Impact Assessment, Engagement and Scrutiny feedback).

Decisions:

45.1     The Cabinet considered a report by the Chief Executive together with a summary of the consultation meeting held with Trade Unions which was received after publication of the Cabinet agenda.

 

45.2        It was RESOLVED to:

 

1.              recommend the County Council to:

 

i)          Approve in principle the draft Council Plan 2025/26 at Appendix 1 and authorise the Chief Executive to finalise the Plan in consultation with the relevant Lead Members;

ii)         Agree to incorporate Climate Emergency Action Plan activities and key performance measures within the Council Plan;

iii)        Increase Council Tax by 2.99% in 2025/26;

iv)        Increase the Adult Social Care Precept by 2% in 2025/26;

v)         Issue precepts to be paid by borough and district councils in accordance with the agreed schedule of instalments at Appendix 5 (Draft);

vi)        Approve the net Revenue Budget estimate of £579.6m for 2025/26 set out in Appendix 2 (Medium Term Financial Plan) and Appendix 3 (Draft) (Budget Summary) and authorise the Chief Executive, in consultation with the Chief Finance Officer, Leader and Deputy Leader, to make adjustments to the presentation of the Budget Summary to reflect the final settlement and final budget decisions;

vii)       Agree the Reserves Policy set out in Appendix 6;

viii)       Approve the Capital Strategy and Programme at Appendix 8;

ix)        Note progress with the Council Plan and Budget 2024/25 since quarter 2 set out in section 4;

x)         Note the Medium Term Financial Plan forecast for 2025/26 to 2027/28, set out in Appendix 2;

xi)        Note the comments of the Chief Finance Officer on budget risks and robustness, as set out in Appendix 6;

xii)       Note the comments from engagement exercises set out in Appendix 7;

xiii)       Note the schedule of fees and charges that have increased above 4% at Appendix 9; and

2.         Agree to continue lobbying as strongly as possible for sustainable funding to meet the needs of East Sussex residents, using all available avenues.

Reason

 

45.3     This Council has a firm foundation of sound and prudent financial management over many years, endorsed by external assessments. We have taken difficult decisions when we needed to in order to balance the books and make best use of stretched resources. Our robust RPPR process has enabled us to direct spending towards priorities and core services, in particular protecting services for the most vulnerable in our county.

 

45.4     However, despite this strong record, the scale of the challenge the Council now faces is substantial. The continuing escalation in costs and demand for statutory services, due to factors beyond local control, has not been matched with sufficient increased funding. Despite the action we have taken locally to address pressures wherever we can, there is a very significant deficit and substantial risk in the coming years. There also remains considerable uncertainty about the future funding regime for local government, as well as wider service and structural reforms, and how any changes will impact on the Council.

 

45.5     There is continued national reliance on raising funding for core pressures, particularly growing demand in social care, through local Council Tax which is unrelated to need and unsustainable. In this context we must again ask local people to contribute more to protect services for the most vulnerable for the future. This recommendation is not made lightly, given the ongoing pressures on household budgets, but it is essential if we are to protect services as far as possible. Support will continue to be available through local Council Tax Support Schemes for those residents eligible and we will continue to work with partners to signpost residents to sources of support with the cost of living, including access to benefits they may be entitled to.

 

45.6     Even after this contribution, the budget presented for the year ahead relies on delivering significant and difficult savings, which will impact on local people, our staff and partners, and on using further reserves to balance the books, removing this safety net for the future. This is an unsustainable position.

 

45.7     In this context, and with future funding for local government under review, our lobbying will also be vitally important. We will respond with clarity and with evidence to the Government’s consultations on funding and service reform. We will ensure the hard choices already having to be made, and the impacts these will have on local residents, business and communities, are heard loud and clear. We will continue to work with our local, regional and national partners to highlight the specific needs of East Sussex and to press for fair, sustainable funding that enables us to meet the requirements of our residents for essential support. Until this is delivered our medium term financial position will remain extremely difficult and present significant risk to our ability to meet local needs in the future.

Report author: Claire Lee

Publication date: 28/01/2025

Date of decision: 28/01/2025

Decided at meeting: 28/01/2025 - Cabinet

Effective from: 04/02/2025

Accompanying Documents: