Agenda item

To receive a report on the Elected Mayor and Cabinet’s recommendations for the 2024/25 General Fund Revenue Budget, Council Tax Requirement and Council Tax Level, the 2024-2029 Investment Plan and the Treasury Management Strategy, Annual Investment Statement for 2024/25 and to consider any objections.

 

 

(Councillors K Clark, J Cruddas, A McMullen, S Burtenshaw and M Thirlaway withdrew from the meeting and took no part in the discussion or voting on this item).

 

The Chair explained the procedure for the meeting and indicated that he would first request Councillor C Johnson to move the Elected Mayor and Cabinet proposals.  Once those proposals were seconded, Members would then have the opportunity to asked questions relating to matters of principle.

 

It was moved by Councillor C Johnson and seconded by Councillor H Johnson that Council:

 

(a)          Agree the recommendations and delegations set out in paragraph 1.5.27 of this report in relation to the 2024/25 General Fund Revenue Account Budget, the 2024/25 Council Tax Requirement and Council Tax Level for 2024/25, being the Elected Mayor and Cabinet’s Budget and Council Tax Requirement proposal.

 

(b)          Agree the Elected Mayor and Cabinet’s proposals for the 2024-2029 Investment Plan, including the Capital Investment Strategy and the proposed prudential indicators for 2024-2029, presented to Cabinet on 29 January 2024,set out in the General Fund Annex 1, Appendix D (i), (iii) and (iv) of Appendix A of the 29 January 2024 Cabinet report attached to this report at Appendix 1;

 

(c)      Agree the Elected Mayor and Cabinet’s proposals for the Treasury Management Strategy, Annual Investment Statement for 2024/25, attached in the General Fund Annex 1, Appendix E (i), (ii) of Appendix A of the 29 January 2024 Cabinet report attached to this report at Appendix 1.

 

2024/25 Council Tax Requirement Resolution

 

1.                 The recommended Budgets of the Authority be approved as noted below, subject to the variations listed in paragraphs 2 and 3 below and noting the estimated allocation of £219.359m in Dedicated Schools Grant, for 2024/25:

 

	£
General Fund Revenue Budget	£195,246,790
Total	£195,246,790

 

 

 

 

2.         The following levies be included in the Budget Requirement:

 

	£
The Tyne and Wear element of the Durham, Gateshead, Newcastle Upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority Transport Levy	£12,959,626
Environment Agency	£230,435
Total	£13,190,061

 

3.         The contingency be set as follows:

	£
Contingency	£1,382,306
Total	£1,382,306

 

4.         Note that at its meeting held on 22 January 2024, Cabinet agreed the Council Tax base for 2024/25 for the whole Authority area as 64,471 (Item T), in the Formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”) and the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012.

 

5.         Agree that the Council Tax Requirement for the Authority’s own purposes for 2024/25 is £125,300,843(as set down in paragraph 1.5.25, Table 4).

        

6.         Agrees that the following amounts now calculated by the Authority for the year 2024/25 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

 

(a)  £412,101,862         Being the aggregate of the amounts which the Authority estimates for the items set out in Section 31A(2)of the Act.

 

(b)  £286,801,019        Being the aggregate of the amounts which the Authority estimates for the items set out in Section 31A(3) of the Act.

 

(c)  £125,300,843       Being the amount by which the aggregate at 6(a) above exceeds the aggregate at 6(b) above, calculated by the Authority in accordance with Section 31(A)(4) of the Act, as its Council Tax Requirement for the year (Item R in the formula in Section 31B of the Act).

 

(d)  £1,943.52             Being the amount at 6(c) above (Item R), all divided by Item T (4 above), calculated by the Authority, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year.

                                   

(e)  North Tyneside Council Valuation Bands

                                           

Council
Tax Band	£
A	1,295.68
B	1,511.63
C	1,727.57
D	1,943.52
E	2,375.41
F	2,807.31
G	3,239.20
H	3,887.04

 

                               Being the amounts given by multiplying the amount at 6(e) above by the number which, in the proportion set out in Section 5(1) of the Act 1992, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Authority, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

                         (f) Police and Crime Commissioner for Northumbria Valuation Bands

 

                               Note that for the year 2024/25 the Police and Crime Commissioner for Northumbria has issued the following amounts in precepts to the Authority, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings in the Authority’s area, as indicated below:

 

Council
Tax Band	£
A	121.23
B	141.43
C	161.64
D	181.84
E	222.25
F	262.66
G	303.07
H	363.68

 

                        (g)  Tyne & Wear Fire and Rescue Authority Valuation Bands

 

                               Note that for the year 2024/25 the Tyne and Wear Fire and Rescue Authority has issued the following amounts in precepts to the Authority, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings in the Authority’s area, as indicated below.  Please note, these levels will not be confirmed until the Tyne and Wear Fire and Rescue Authority meets on 19 February 2024:          

      

Council
Tax Band	£
A	63.41
B	73.98
C	84.54
D	95.11
E	116.25
F	137.38
G	158.52
H	190.22

                       

 

 

                        (h) Total Valuation Bands

 

                               That, having calculated the aggregate in each case of the amounts at 6(e), 6(f) and 6(g) above, the Authority, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2024/25 for each part of its area and for each of the categories of dwellings shown below.  Please note the timing of the Tyne and Wear Fire and Rescue Authority meeting on 19 February 2024.  Any change to the proposed precept would change the total valuation bands set out below:                 

      

Council
Tax Band	£
A	1,480.32
B	1,727.04
C	1,973.75
D	2,220.47
E	2,713.91
F	3,207.35
G	3,700.79
H	4,440.94

 

7.           The Authority’s relevant basic amount of Council Tax for 2024/25 is

              not excessive in accordance with the principles approved under

              Section 52ZB of the Local Government Finance Act 1992, as

              amended.

 

8.           The Authority’s Financial Regulations will apply to the financial management of this Budget.

 

9.           The level of contingencies will be £1.382m as pressures incurred during 2023/24 relating to Social Care, pay award and energy and contractual inflation have been recognised as part of the 2024/25 Financial Planning and Budget process.

 

10.          It is proposed that virement levels and approvals for virement shall be in accordance with the rules set down in the Authority’s Financial Regulations in force at the time.

 

11.           The Reserves and Balances Policy is adopted as set out and is

              subject to review at least annually.

 

12.          The Chief Executive, in consultation with the Elected Mayor, Deputy

 

              Mayor, Cabinet Member for Finance and Resources and the Senior 

              Leadership Team to manage the overall MTFP Project workstreams and note that decisions made under this delegated authority will be reported to Cabinet as part of the regular budget monitoring information provided.

 

13.          The Chief Executive, in consultation with the Elected Mayor and Director of Resources, to authorise the purchase of properties, on the open market, providing value for money is demonstrated and the cost can be contained within existing financial resources of the Authority.  This is to ensure that the programme of delivery of affordable homes and homes at social rent is progressed in line with the Cabinet's priorities.

 

14.          The Director of Resources be authorised to serve notices, enter into agreements, give receipts, make adjustments, institute proceedings, and take any action available to the Authority to collect or enforce the collection of Non-Domestic Rates and Council Tax from those persons liable.

 

15.          The Director of Resources be authorised to disburse monies from funds and accounts of the Authority as required for the lawful discharge of its functions.

 

16.          Agree that the Police and Crime Commissioner for Northumbria and the Tyne and Wear Fire and Rescue Authority receive payment from the Collection Fund in 12 equal instalments on the last working day of each month.

 

17.          Payments from the Collection Fund to be made to the Authority's

              General Fund in 12 equal instalments on the last working day of

              each month.

 

No objections to the budget were received, a recorded vote was taken on the Mayor and Cabinet’s proposals.

 

Votes for the Elected Mayor and Cabinet’s Proposals:

 

N Redfearn, Elected Mayor, Councillors S Cox, P Earley, J Harrison, W Samuel, Janet Hunter, S Graham, C Johnson, H Johnson, S Phillips, E Darke, J Walker, N Craven, M Murphy, M Wilson, A Newman, J Montague, T Hallway,  D Cox, A Holdsworth,  J Kirwan, J Shaw, I Grayson, J O'Shea, P Oliver, D Drummond, M Hall, L Marshall, J Mudzingwa,  T Mulvenna, W Lott, F Lott                                

 

Votes against the Elected Mayor and Cabinet’s Proposals:

 

Councillors L Bones, L Bartoli, J Johnsson, I McAlpine,  C Johnston, O Scargill,  P McIntyre,  J Wallace, M Fox, C Davis, V Jamieson, G Madden 

 

The substantive motion on being put to the meeting, was approved by 32 votes to 12 votes with no abstentions.

 

The Chair announced that the Elected Mayor and Cabinet’s Budget and Council Tax Council Requirement Resolution for 2024/25 had been approved by the Council and therefore the meeting provisionally scheduled for 29 February 2024 was no longer required.