Agenda item

Members gave consideration to a report which presented the Medium-Term Financial Plan (MTFP) for 2026/27 onwards, alongside the 2026/27 Budget and the Capital Programme from 2026/27 to 2031/32.

 

Councillor Bierley, as Chairman of the Corporate Policy and Resources Committee presented the report,  advising the MTFPs purpose was  to set a robust overall framework for the Council’s Financial Strategy and spending plans over the next five years in support of delivering the Corporate Plan.

 

The report set out the revised financial plans within the financial analysis for changes in Government Funding, the economic environment, local engagement and the priorities of the Council. The Plan reflected revisions to previous estimates and covered the period 2026/27 to 2030/31.

 

A balanced budget for 2026/27 was proposed, without the requirement to support it with funds from the general fund balance. The final local government finance settlement had been delivered in February and had set funding allocations for the next three years. This had encompassed a reset of Business Rates and a wider review of local government funding.

 

For 2026/27 the West Lindsey part of Council Tax was proposed to increase by 2.97% which equated to a rise of £7.38p per week for a band D property.  The 2026/27 Budget totalled £21.414m, was fully funded and represented a balanced budget within the requirements. 

 

Councillor Bierley moved the recommendations before handing over to the Leader who seconded the recommendations before making the following budget speech.

 

“On behalf of the West Lindsey Administration Group, I am delighted to second the recommendations in this paper.

 

Building on what Councillor Bierley has outlined, it is a busy time for the Council at the moment and this budget provides us with a stable base to continue to deliver award winning and highly efficient services whilst also working on a number of initiatives.

 

We are currently rolling out the food waste service which is the biggest new service the Council has delivered in many years and thanks go to not only the waste team but also teams across the Council in helping to roll out this service to residents.

 

The future of the former RAF Scampton site will hopefully be resolved during this year with the Council hoping to successfully bid for the site and together with Scampton Holdings deliver a once in a generation regeneration scheme. This will regenerate the site and create jobs and bring visitors to the area in what will be a landmark scheme for the area.

 

Part of Gainsborough has been awarded Pride in Place funding which will be up to £20m over a ten year period. The Council will look to work with the Pride in Place neighbourhood board when it is established to help to deliver long term improvements that matter to local people.

 

With Local Government Reorganisation on the horizon work has already started within the Council on ensuring we are in best shape we can be whilst also ensuring residents’ voices are heard when shaping any new authority.

 

With the new Corporate Plan (having been approved tonight)  we as an Administration are looking to deliver on our bold ambitions across the district. These being to improve leisure and recreational facilities, making best use of our assets and ensuring that residents’ needs are being met.

 

All of these are being delivered whilst we continue with business as usual for our residents and working together with our partners.

 

Although the Local Government finance settlement could have been better for us we knew that reductions in funding would come at some point and therefore the medium term financial plan has been carefully planned to avoid the need to reduce service levels. Due to the change between the provisional and final settlements we have planned for a small drawdown of reserves in year three to balance over the medium term. We will continue however to lobby Government for a fairer settlement for rural districts such as ours which takes into account the challenges of delivering services in our area. It is hoped therefore that by year three we may not need to draw on reserves at all.”

 

In opening the matter of the debate the Chairman reminded Members that in accordance with the statutory requirements, any and all votes taken in relation to the item would automatically be a recorded vote,  and the way in which a Member voted would be recorded in the minutes.

 

The Leader of the Opposition was first to address the Chamber and suggested the increase in council tax , was not a considered position but rather a default position, suggesting that the rise could have been lower, without impacting the Council budget too much.  It was suggested there should have been more consideration for the difficulties residents were facing in respect of the cost of living and that not enough had been done to find efficiencies, noting the Savings Boards had not met.

 

Councillor Young then proposed an amendment; -

 

“that the Council increase the council tax by 2%”

 

Members were advised this equated to identifying savings of £80,000 which Councillor Young was of the view was deliverable and would not impact the Council’s delivery plans to a great degree.

 

With the amendment seconded, Members then debated the amendment.

 

The relevance of the Savings Board was disputed, with the Administration advising efficiencies were always being and continued to be found and this work did not need to go through a savings board.  Savings Boards in other authorities, which had been referred to had actually been cutting services, and still increasing Council tax. The budget proposed, ensured residents continued to receive all services and to a quality level.

 

It was also suggested that Opposition Members should have presented their revised proposals in advance of the meeting and worked with the Administration in contributing to achieving a balanced budget.

 

At the request of the Opposition, the Monitoring Officer advised it was constitutionally acceptable to table amendments on the night of the debate.  The Leader clarified her comment.

 

Opposition Members suggested more work should be being undertaken to transfer assets which would in turn reduce the District Council’s budget. In responding Administration Members outlined the exploratory and preparatory work being undertaken regarding assets transfer and were mindful that asset transfers need to be undertaken in responsible manner, to ensure those taking on assets were in a position to do so, if assets were to be safeguarded in the future.  Some assets generated incomes which supported the budget, all factors needed to be considered in a responsible way.

 

Members were reminded that points raised  should be related to the amendment.  With no further speakers indicating, the amendment was put to a recorded vote, with votes being cast as follows: -

 

For:         Councillors Dobbie Howitt-Cowan, Rollings, Velan and Young (5)

 

Against:  Councillors Bailey, Barrett, Bierley, Boles, Brockway, Bridgwood, Brown, Bunney, Carless, Duguid, Flear, Fleetwood, Key, Lawrence, Lee, Morris, Mullally, Palmer, Pilgrim, Smith, Snee M, Snee J, and Westley (23)

 

 

Abstentions: (0)

 

With a total of 5 votes cast for the amendment and 23 votes against, the amendment was declared LOST.

 

Debate continued with Opposition Members wishing to bring to the attention of the Chamber that post LGR, Council tax levels would need to be harmonised and his understanding was that taxes would rise to match that set by the  highest charging authority.  He urged that work be undertaken to both increase Members’ understanding of these matters and cushion residents from any sharp future increases.

 

Bringing comments to a close, with the recommendations proposed and seconded, in accordance with Procedure Rule 14.4 and as required by regulations, the motion was put to a recorded vote, with votes cast in the following manner: -

 

For:         Councillors Bailey, Barrett, Bierley, Boles, Brockway, Bridgwood, Brown, Bunney, Carless, Duguid, Flear, Fleetwood, Key, Lawrence, Lee, Morris, Mullally, Palmer, Pilgrim, Smith, Snee M, Snee J, and Westley (23)

 

Against:  Councillors Howitt-Cowan, Rollings, Velan and Young (4)

 

Abstentions: Councillor Dobbie (1)

 

 

With a total of 23 votes cast in favour, 4 against and 1 abstention, the motion  was declared carried and it was

 

RESOLVED that:-

 

(a)     the external environment and the financial challenges which the Council could face in the medium to longer term depending on the outcome of future government policy and the outcome of Local Government Reorganisation (LGR) be formally recognised;

 

(b)    the Statement of the Director of Finance and Assets (Section 151 Officer) on the Robustness of Estimates and Adequacy of Reserves at paragraph 1.10 be accepted;

 

(c )   the Medium Term Financial Plan 2026/27 to 2030/31  be accepted  along with the risks associated as detailed at Appendix 2.

 

(d)    the formal Council Tax resolution as detailed in Appendix 8,  which proposed a Band D equivalent amount of £256.14, be accepted;

 

(e)    the Revenue budget 2026/27 detailed at paragraph 1.4 be approved;

 

(f)     the movement in earmarked reserves detailed at paragraph 1.6 be approved;

 

(g)    the level of fees and charges for 2026/27 as detailed at Appendix 3, be approved;

 

(h)    the Capital Investment Strategy at Appendix 4, be approved;

 

(i)     the capital Programme 2026/27 – 2030/31 and financing as detailed at Appendices 5 and 6 be approved;

 

(j)     the Treasury Management Strategy 2026/27 be approved and the Treasury Investment Strategy, the Borrowing Strategy, the Treasury and Borrowing Prudential Indicators and the Treasury Management Practices detailed at Appendix 7 be adopted;

 

(k)    the Minimum Revenue Provision (MRP) Policy as contained in the Treasury Management Strategy at Appendix 7 be approved;

 

(l)     the 2026/27 Pay Policy Statement at Appendix 13 be approved; and

 

(m)   delegation be granted to  the Corporate Policy and Resources committee to approve any change to an existing Fees and Charges required during the year, which are required after the budget is set.