Issue - decisions

RECOMMENDATIONS:

The Executive is asked to agree the following recommendations:

1.1.        To agree the annual budget for the London Councils Grants Committee and proposed Islington contribution, following consideration by the London Councils Leaders’ Committee on 10 December 2024. (Paragraph 3.34) 

1.2.        To agree the Housing Revenue Account (HRA) rents and other HRA fees and charges for 2025/26 (Tables 17-19, and Appendix D2) 

The Executive is asked to note and endorse the following recommendations which will be referred to Full Council for approval:

The General Fund Medium-Term Financial Strategy (Section 3)

1.3.        To?agree and recommend to Full Council?the?latest assumed?Medium-Term Financial Strategy (MTFS)?and 2025/26 budget, including the underlying?MTFS principles, latest in-year monitoring position and the budget assumptions. (Paragraphs 3.5-3.12, Table 1,?and?Appendix A) 

1.4.        To?agree and recommend to Full Council the?proposed?2025/26 net budgets by directorate. (Paragraph?3.13,?Table?3,?and?Appendix A) 

1.5.        To agree and recommend to Full Council the 2025/26 savings and note that individual savings may be subject to individual consultation before they can be implemented. (Paragraph 3.39, Table 8, and Appendix B) 

1.6.        To note?the?Dedicated?Schools?Grant (DSG)?settlement for 2025/26 and related funding assumptions following the Provisional Local Government Finance Settlement on the 18 December 2024 (‘the settlement’). (Paragraphs 3.49-3.77) 

1.7.        To note that the fees and charges policy and the General Fund (GF) fees and charges from 1 January 2025 are as agreed by Executive on 28 November 2024. (Paragraph 3.80) 

1.8.        To?agree and recommend to Full Council?that the Section 151?Officer is delegated responsibility for any technical adjustments required for the?2025/26?budget (in line with the?council’s Financial Regulations).  

1.9.        To agree and recommend to Full Council that centrally held demographic growth is allocated to service budgets in-year 2025/26, only once a more evidenced assessment is available and has been approved by the Section 151 Officer.

General Fund Contingency and Reserves (Section 4) 

1.10.     To?agree and recommend to Full Council?the proposed Minimum GF Balance and Earmarked reserves level at 25% of Core Spending Power, and to agree the?movements to/from earmarked reserves assumed as part of the 2025/26 revenue budget.?(Paragraphs 4.4-4.16, Table?11 and Appendix C) 

1.11.     To note the assessment of compliance against the CIPFA Financial Management (FM) Code and that this will be re-visited at least annually as part of the budget process, with any actions or recommendations implemented on an ongoing basis. (Paragraphs 4.17-4.19 and Appendix J)

1.12.     To note the Balance Sheet Analysis to support the MTFS. (Paragraphs 4.20-4.22 and Appendix F)

The HRA Budget and MTFS (Section 5) 

1.13.     To agree and recommend to Full Council, the balanced HRA 2025/26 and note the latest estimates over the 3-year MTFS period. (Table 14, and Appendix D1) 

1.14.     To agree and recommend to Full Council the 2025/26 savings and note that individual savings may be subject to individual consultation before they can be implemented. (Table 15, and Appendix D3) 

1.15.     To note that the HRA 30-year business plan is currently being updated to reflect latest government policy. (Paragraph 5.2)

Capital Investment and Treasury and Investment Management (Section 6) 

1.16.     To agree and recommend to Full Council, the proposed 2025/26 to 2029/30 capital programme and latest indicative capital programme for 2030/31 to 2034/35. (Paragraphs 6.1-6.6, Tables 20-21, Appendix E1 and Appendix E2)

1.17.     To agree and recommend to Full Council the funding of the 2025/26 to 2034/35 capital programme and to delegate authority to the Section 151 Officer, where necessary, to apply capital resources to fund the capital programme in the most cost-effective way for the council.  (Paragraphs 6.11-6.12 and Table 22)

1.18.     To note that inclusion of a scheme in the capital programme does not in itself necessarily grant permission to commit expenditure against the approved capital budget. This remains subject to any additional approval requirements of the council’s constitution, financial regulations and procurement rules.

Council Tax and Retained National Non-Domestic Rates (Section 8) 

1.19.     To note that the detailed, statutory council tax calculation and the recommendations for the final 2025/26?council tax, including the Greater London Authority (GLA) precept, will be included for agreement in the final Budget Report to Executive on 13 February 2025 and Full Council on 27 February 2025.

1.20.     To note that the council’s 2025/26 NNDR1, the detailed national non-domestic rates (NNDR) estimate, will be finalised and certified by the Section 151 Officer ahead of the 31 January 2025 statutory deadline.

Matters to Consider in Setting the Budget (Section 9) 

1.21.     To have regard to the Section 151 Officer’s report on the robustness of the estimates included in the budget and the adequacy of the proposed financial reserves when making decisions about the budget and the level of council tax, as required under Section 25(2) of the Local Government Act 2003. (Paragraphs 9.1-9.9) 

1.22.     To note the Monitoring Officer comments. (Paragraphs 9.10-9.15)

1.23.     To note the Environmental Implications and Contribution to Achieving a Net Zero Carbon Islington by 2030. (Paragraphs 9.16-9.21)

1.24.     To note the Equality Impact Assessment (EQIA) and to take full account of it in approving the overall budget and related proposals. (Paragraphs 9.22-9.24 and Appendix G)

1.25.     To note that the council is inviting residents and NNDR payers (or representatives of NNDR payers) in Islington to comment on the draft 2025/26 budget proposals in this report, as required under Section 65 of the Local Government Finance Act 1992. (Paragraphs 9.25-9.27) 

1.26.     To agree and recommend to Full Council the Retail Relief Scheme for 2025/26 (Appendix H and paragraph 9.28).? 

1.27.     To agree and recommend to Full Council the Pay Policy Statement for 2025/26 (Appendix I and paragraph 9.29)

DECISIONS:

AGREED 1. RECOMMENDATIONS

2.    That thanks be extended to councillors and officers for their work in achieving a balanced budget.

Reasons for the decision – as detailed in the report

Other options considered – as detailed in the report

Conflicts of interest / dispensations granted – none