The Head of Finance presented the report which set out updates to the 2025/26 budget process within the existing framework of the 10-year budget and savings plan.  The position in the report set out an annual budget gap of £297,000 but recognised that this was likely to change as more information became available and options for further savings may be required.

Informed by the latest information from Government and discussions from Cabinet, it was proposed that the Council once again set a balanced 10-year budget.

As part of the feedback received last year, all Members had been invited to make suggestions which related to the relevant Advisory Committee and would be set out in Appendix K. The appendix would form the basis to report to Cabinet all suggestions that were received even if not taken forward by the Advisory Committee.

The report presented growth items that had been identified which needed to be considered, and requested further suggestions from the Advisory Committee and from members attending the meeting, before finalising the budget for 2025/26. 

The Committee considered the 2 proposals set out in Appendix H, the first of which was an increase to the cost of the Finance System as a result of the onsite solution no longer being supported, and the second an increase in external audit fees. The Head of Finance responded to questions regarding the new system and implications if the cloud based solution was not implemented. Members discussed the Finance System, voicing their dissatisfaction at the substantial increase of costs proposed by the software provider and the lack of time that had been allowed to enable an alternative provider to be sought. Members also asked questions in regards to the increase in the external audit fee. The Chief Officer Finance & Trading advised that as part of the agreement through the Public Sector Audit Appointment (PSAA), there was work being undertaken to get back part of the fees paid for the audits which had not been completed. Overall there was support, albeit reluctant, for both budget growth proposals.

Members gave further consideration to additional suggestions for savings which had been suggested and required consideration by the Committee. Those which were relevant to this Advisory Committee were as follows:

·   Withdrawing investment funds from two investment counterparties and the basis of ethical banking.

Following discussion, Members were advised that the Treasury Management Strategy was updated annually and Members could make suggestions as to where investments were made. This would be coming to the January meeting where it could be more fully discussed with additional relevant information.

Other suggestions which were put forward, but were not relevant to the Advisory Committee included: IT costs for systems, solar panels on Council Assets, and systematic software/approach for value for money.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

Resolved: That it be recommend to Cabinet that

a)     The growth proposals (SCIA R11 and R12) identified in Appendices G&H to the report applicable to this Advisory Committee, be considered; and that

b)     No further income or growth proposals were supported relevant to this Advisory Committee.