Issue - meetings

Report of the Executive Director – Corporate Services and Commercial

Further to Minute No. 109 of the meeting of the Cabinet held on 13 February 2025, the Council considered the report of the Executive Director – Corporate Services and Commercial indicating that, to comply with statute, the Chief Financial Officer was required to report to Council prior to the approval of the budget and the setting of the Council Tax, to give assurance that the budget was robust and that there were adequate reserves and balances. The report was based on the proposals presented.

It was moved by Councillor Howard, seconded by Councillor Atkinson and

RESOLVED: That

(1)      it be noted that the Local Government Act 2003, (Section 25 as amended) requires the Chief Financial Officer to report formally the issues of an opinion as to the robustness of the estimates made and the tax setting calculations; and the adequacy of the proposed financial reserves; and

(2)      the Council be recommended to have regard to the matters raised in the report during the final stages of determining the budget for 2025/26.

Report of the Executive Director – Corporate Services and Commercial

Further to Minute No. 43 of the meeting of the Overview and Scrutiny Committee (Regulatory, Compliance and Corporate Services) held on 11 February 2025, the Cabinet considered the report of the Executive Director – Corporate Services and Commercial indicating that, to comply with statute, the Chief Financial Officer was required to report to Council prior to the approval of the budget and the setting of the Council Tax, to give assurance that the budget was robust and that there were adequate reserves and balances. The report was based on the proposals presented.

Cabinet Members asked questions/commented on the following issues:

·       The adequacy of the proposed financial reserves; and

·       The new government’s commitment to a fundamental review of local government funding that will inform the next three-year settlement from 2026/27.

Decisions Made:

That

(1)      it be noted that the Local Government Act 2003, (Section 25 as amended) requires the Chief Financial Officer to report formally the issues of an opinion as to the robustness of the estimates made and the tax setting calculations; and the adequacy of the proposed financial reserves; and

(2)      the Council be recommended to have regard to the matters raised in the report during the final stages of determining the budget for 2025/26.

Reasons for the Decisions:

The Local Government Act 2003, (section 25 as amended) required the Chief Financial Officer to report formally on the issues contained within the report.

Alternative Options Considered and Rejected:

It was a statutory requirement to complete the report, therefore there were no alternative options available.

Report of the Executive Director – Corporate Services and Commercial

The Committee considered the report of the Executive Director of Corporate Services and Commercial on the robustness of the 2025/26 Budget Estimates and the Adequacy of Reserves – Local Government Act 2003 - Section 25.

The report indicated that to comply with statute, the Chief Financial Officer was required to report to Council prior to the approval of the budget and the setting of the Council Tax, to give assurance that the budget was robust and that there were adequate reserves and balances.

The report concluded that as a result of considering the issues contained within the report, it was the view that the budget proposed was a robust budget package whilst also ensuring that there were adequate General Balances to draw on if the service estimates turned out to be insufficient; and that this opinion was provided in accordance with Section 25 of the Local Government Act 2003. 

This report would also be considered by Cabinet and Council at their meetings to be held on 13 and 27 February 2025 respectively.

Members of the Committee asked questions/commented on the following issues:

• It was noted that there were a number of councils struggling with financial viability and sustainability, and that some large and risky investments by such Councils were not yielding anticipated returns - this is not the case in Sefton. 
• Information was sought on the situation in Sefton regarding the surplus revenue generated by wholly owned companies
• Reference was made to the assumption in the report in respect of Adult Social Care, that savings would be achieved in 2025/26 in addition to residual savings that needed to be made from 2024/25.  Clarification was sought on what the assumption had been based on
• National considerations, as detailed in paragraph 3.5 of the report were referred to, and concern was expressed about the potential for substantial cost increases for goods and services procured or commissioned by the Council
• proposed increases in the General Balances held by the Council to improve financial sustainability and resilience over the 3-year period
• the adequacy of reserves, the anticipated reduction to support the 2024/25 budget and the strategy to replenish these over the next 3 years and how this impacts on the robustness of the Council’s budget
• the inclusion in the budget of projections and assumptions associated with demand led services for children’s services
• detailed information on the Council’s wholly owned companies. It was noted that the overview of wholly owned companies fell within the remit of other Overview and Scrutiny Committees and therefore that outturn reports were submitted to those Committees.

RESOLVED:

That it be noted that the Local Government Act 2003, (section 25 as amended) requires the Chief Financial Officer to report formally on the following issues:

and that the Council is requested to have regard to the matters raised in this report during the final stages of determining  ...  view the full minutes text for item 43