0524
The Treasurer presented the Budget and Precept for 2025/26 and the Medium-Term Financial Plan for approval.
Members noted the Capital Programme which had the usual annual provision of £0.600m for minor buildings and ICT schemes and the movements from the figures approved at the February 2024 Fire Authority meeting.
[Cllr M Baylis, Deputy Police and Crime Commissioner, entered the meeting at 10.37am].
Members noted that the Government had substantially changed its funding. It had withdrawn the Funding Guarantee Grant and the Rural Services Delivery Grant completely. The minimum funding increase was now to include income from Council Tax precept (assuming an Authority will increase by the maximum permitted) and the minimum increase was now set at 0%. The Authority was previously also in receipt of a grant towards the costs of the FireLink national radio communications system used operationally, which was being phased out over time. This had been accelerated and the grant had now ceased early. National Insurance employers contributions changes had also had a disproportionate impact on contributions relating to On-Call staff. The government had indicated that these changes would be funded for the public sector, however the reality was that the grant covered only 50% of the increased costs.
The Treasurer confirmed to Members that if the MTFP assumptions on precept were adhered to then a budget gap of £1.644m would arise. There had been a one-off improvement in the Business Rate Collection fund from deficit in 2024/25 to surplus in 2025/26 which helped offset this gap, however it still left a significant gap.
Members were advised that in order to provide resource to enhance service provision, the sector, through NFCC and Home Office, negotiated that the referendum limit on Fire precept would be increased to £5. The Treasurer and Chief Fire Officer advised that a £5 increase was necessary to avoid the budget gap being so large as it would have an inevitable impact on front line services.
The Chief Fire Officer announced that the Senior Leadership Board were preparing a savings plan, which would be shared with Members.
Members requested that the Chairman write to all local MPs stating their concern that the current methodology does not take into account of rural areas. Members requested a copy of the letter is shared with them.
RESOLVED that:
a. The Capital Strategy be approved.
b. The Capital Budget and Programme be approved.
c. The Core Net Revenue Budget of £45,109,400 be approved.
d. The Medium-Term Financial Plan be approved.
e. Under the provisions of the relevant sections of the Local Government Finance Act 1992 (as amended), in relation to the year 2025/26 the Authority calculates, that:
i. S42A(2)(a): the aggregate expenditure it will incur will be £45,185,200.00.
ii. S42A(2)(c): the amount to be transferred to financial reserves will be £0.00.
iii. S42A(3)(a): the aggregate income it will receive will be £14,544,553.61.
iv. S42A(3)(b): the amount to be transferred from financial reserves will be £359,714.00.
v. S42A(10): the net Collection Fund surplus is £241,888.08.
vi. S42A(4): the net amount of its Council Tax Requirement will be £30,039,044.31.
vii. S42B: the Basic Amount of Council Tax will be £102.22 (Band D).
viii. S47: the proportional tax-bands will be:
- Band A £68.15
- Band B £79.50
- Band C £90.86
- Band D £102.22
- Band E £124.94
- Band F £147.65
- Band G £170.37
- Band H £204.44
ix. S48: the precept demands on the individual Billing Authorities are:
- Bromsgrove £3,921,149.04
- Herefordshire £7,443,327.28
- Malvern Hills £3,430,299.83
- Redditch £2,704,281.25
- Worcester £3,431,637.89
- Wychavon £5,496,098.60
- Wyre Forest £3,612,250.42
f. The Reserves Strategy be approved.
g. The Investment Strategy be approved.
h. The fees and charges for 2025/26 be approved.
i. The Statement of Prudential Indicators and revised Minimum Revenue Provision Policy be approved.