Issue - meetings

To agree the 2025-26 general fund budget to be recommended to council assembly. To note the medium-term financial strategy update, council tax setting and capital programme and to agree the 2025-26 housing revenue account budget.

It was not possible to circulate this report five clear days in advance of the meeting. The chair agreed to accept this item as urgent as the cabinet was required to prepare a budget proposal for submission to council assembly.  This is the last cabinet meeting before council assembly on 26 February. The Local Government Act 1992 requires that billing authorities complete and approve their budgets and set a council tax before 11 March immediately prior to the start of the financial year on 1 April 2025.

Councillor Ian Wingfield, chair of the overview and scrutiny committee presented a summary of the committee’s recommendations to cabinet.

RESOLVED:

1.  That the following recommendations be agreed to forward to council assembly:

a.  the balanced general fund budget proposals for 2025-26.

b.  in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, the local council tax amounts shown in Table 3 of the report.

2.  That the following be approved:

a.  the housing revenue account budget for 2025-26 (paragraphs 64-83 of the report).

b.  the final fees and charges schedule at Appendix B of the report.

3.  That the following be noted:

a.  that the final Local Government Finance Settlement has not been published at the time of writing, any changes from the provisional settlement published on the 18 December 2024, will be set out in the 2025-26 budget report to council assembly on 26 February 2025.

b.  the update to the medium-term financial strategy (MTFS).

c.  that the MTFS, the transformation programme, ongoing budget demand and cost pressures, the capital programme and HRA budget and were considered by the overview and scrutiny committee in January 2025 and that the recommendations arising, and officer responses are included at Appendix E of the report.

d.  the budget challenge schedule at Appendix A of the report.

e.  the climate report and the budget equality analysis report 2025-26 (Appendices C and D) of the report.

f.  that the Mayor of London draft budget for 2025-26 includes a proposal to increase the GLA council tax precept by 4%, equivalent to a £18.98 increase for a band D property.

g.  the GLA council tax precept is due to be set on the 25 February, one day before council assembly sets the budget for Southwark.

h.  the content of the Section 25 statement by the strategic director of resources.

NOTE: In accordance with overview and scrutiny procedure rule 16.2, (a) (budget and policy framework) these decisions are not subject to call-in.