Agenda item

Members gave consideration to the first report of the evening, presented by the Director of Corporate Services and Section 151 Officer who explained that the purpose of this report was to update the Committee on the current estimated level of savings required from 2025-26 to 2027-28, to approve the process for Budget Consultation and to have discussion, engagement and scrutiny of the governance process surrounding future budget setting. It was requested that options be brought to the next meeting of the Committee to instigate a working group to work together to identify income generating opportunities, monitor savings and efficiencies.

Members were advised that section 1.5 of the report showed the funding gap for three years. There was a significant increase in savings required from 2026 onwards. The expected one-year settlement was hoped to be close to last year’s settlement offer for 2025-26. It was noted that 2026-27 would be more complicated as there was time for the Government to implement funding changes to ensure central government financial sustainability, which was likely to significantly impact Local Authorities. In addition to this, the Council had specific further pressures around implementing food waste collections and some fixed term posts in CCTV ending.

With regard to the timing of financial matters, the Autumn Statement would be delivered at the end of October, there would then be the policy statement followed by the draft settlement. Senior civil servants had already advised Local Authorities that this would be late. There are opportunities for the Council to participate in 2025-26 funding consultation, as well as for future years. To date, representations had been submitted into the spending review consultation including issues such as Council Tax capping, Household Support Fund and Council Funding for dealing with planning applications that fall under the NSIPs banner.

It was highlighted that the final part of the report was an opportunity for discussion on how to ensure Member feedback, oversight and engagement into future savings plans. Over the last few years, balanced budgets had been achieved however the level of anticipated cuts for 2026-27 had not been seen for some time. It was highlighted that Officers and Members could not achieve this alone, with decisions on financial sustainability requiring wider conversations.

The Chairman invited comments from Members, recognising the difficulties faced by the Council.

Councillor S. Bunney voiced his support for the contents of the paper, and, in agreeing with the need to address future problems as early as possible, the idea for a working group was welcomed, however he suggested that an amendment to the recommendation would clarify the requirements of such a group. He therefore proposed that recommendation three of the report be amended as follows:

“Officers are tasked with providing options to the next Committee for the creation of a member/officer working group to work together identify further income generating opportunities, efficiencies and savings which will be essential to bring about balanced budgets in future years.”

He also enquired as to whether options such as recruitment freeze should be considered, accepting it was not an easy choice to make. It was explained that it was a tool which had been used in other authorities, however had not yet been considered at West Lindsey District Council. It was requested that a paper be brought before the Committee to consider such options, including all relevant implications.

With this request noted by Officers, the Chairman returned to the proposed amendment to recommendation three, seeking a seconder. Having been seconded and voted upon it was

            RESOLVED that recommendation three be amended to read:

“Officers are tasked with providing options to the next Committee for the creation of a member/officer working group to work together identify further income generating opportunities, efficiencies and savings which will be essential to bring about balanced budgets in future years.”

With no further comments or questions, the Chairman addressed the three recommendations contained within the report, having been proposed and seconded, the Chairman took the vote and it was

            RESOLVED that

a)    the current estimated level of savings the Council was required to deliver in the period from 2025-26 to 2027-28, be noted; and

b)    the process for Budget Consultation be approved; and

c)    Officers be tasked with providing options to the next Committee for the creation of a Member/Officer working group to work together identify further income generating opportunities, efficiencies and savings which would be essential to bring about balanced budgets in future years.