Agenda item

The Council has a statutory duty to set a balanced budget in advance of each financial year.  The Final Budget for 2024/25 will be presented to Cabinet in January 2024 and Full Council in February 2024. This report and the attached 2024/25 Draft Budget and Medium-Term Financial Strategy to 2028/29 sets out progress towards delivering a balanced budget.

(The decisions on this item can be called-in by the Resources and Performance Select Committee)

RESOLVED:

1.    That Cabinet note the 2024/25 Draft Budget and Medium-Term Financial Strategy to 2028/29, including progress to date in setting out spending pressures and efficiencies, as set out in Annex A.

2.    That Cabinet note the provisional budget gap of £13.5m for 2024/25 and the next steps required to close the gap.

3.    That Cabinet note the proposed Draft Capital Programme for 2024/25 to 2028/29 of £1.9bn set out in Section 6 of the report and Annex B

4.    That Cabinet note the summary of Resident Engagement and next steps set out in Section 9 of the report.

Reasons for Decisions:

In January 2024, Cabinet will be asked to recommend a Final Budget for 2024/25 to full Council for approval in February. The draft budget sets out proposals to direct available resources to support the achievement of the Council’s corporate priorities, balanced against a challenging financial environment, giving Cabinet the opportunity to comment on the proposals and next steps.

The draft budget also provides an update on the Council’s SWITCh (Surrey Way, Innovation, Transformation and Change) programme, setting out the medium to long term portfolio of redesign and transformational change that will enable greater financial sustainability for the Council.

(The decisions on this item can be called-in by the Resources and Performance Select Committee)

The report was introduced by the Leader of the Council who explained that the final Budget for 2024/25 would be presented to Cabinet in January 2024 and then Full Council in February 2024. Members noted that the overall outlook for 2024/25 was challenging as while budget envelopes were increasing, in line with projected funding levels, substantial increases in the cost of maintaining current service provision and increased demand were resulting in pressures increasing at a significantly higher rate than forecasted funding. The Leader outlined a number of spending efficiencies in place however noted that there was still a provisional budget gap of £13.5m for 2024/25 which would need to be closed before the budget was considered by Full Council. The Leader went on to highlight that there was financial pressure specifically in children’s social care placements and Home to School Travel Assistance due to significant cost increases.

With regards to the capital budget, the Leader highlighted that aspirations remained high and that the Draft Capital Programme for 2024/25 – 2028/29 proposed ongoing investment in priority areas such as highways infrastructure, improving the condition of the council’s property estate, creating additional school places which included for children with special educational needs and disabilities, the green agenda, transforming libraries and investing in adult social care accommodation with care and support. The Leader concluded by stating that the budget allowed the county council to be fit for the future and supported and protected the county’s most vulnerable residents.

The Cabinet Member for Finance and Resources commented that it was important to recognise the challenges but also to recognise that the budget would deliver positive improvements which would benefit residents, deliver statutory services, protect frontline services, and meet the objectives of the council to ensure that no one was left behind. The Cabinet Member also highlighted the significant engagement exercises which had taken place.

RESOLVED:

1.    That Cabinet note the 2024/25 Draft Budget and Medium-Term Financial Strategy to 2028/29, including progress to date in setting out spending pressures and efficiencies, as set out in Annex A.

2.    That Cabinet note the provisional budget gap of £13.5m for 2024/25 and the next steps required to close the gap.

3.    That Cabinet note the proposed Draft Capital Programme for 2024/25 to 2028/29 of £1.9bn set out in Section 6 of the report and Annex B

4.    That Cabinet note the summary of Resident Engagement and next steps set out in Section 9 of the report.

Reasons for Decisions:

In January 2024, Cabinet will be asked to recommend a Final Budget for 2024/25 to full Council for approval in February. The draft budget sets out proposals to direct available resources to support the achievement of the Council’s corporate priorities, balanced against a challenging financial environment, giving Cabinet the opportunity to comment on the proposals and next steps.

The draft budget also provides an update on the Council’s SWITCh (Surrey Way, Innovation, Transformation and Change) programme, setting out the medium to long term portfolio of redesign and transformational change that will enable greater financial sustainability for the Council.

(The decisions on this item can be called-in by the Resources and Performance Select Committee)