Cornwall Council Finance Briefing and Second Homes

Transcript:Cornwall Council Finance Briefing and Second Homes:
Cornwall Council Finance Briefing and Second Homes Council Tax Premium Update Town and Parish Councils 7 November 2024 Tracie Langley – Chief Operating Officer (S151 Officer) Will Tarrant – Finance Business Analyst We are awaiting the detail of specific changes in our funding from Central Government, and we are currently using our reserves to balance our budget (which was outlined in our external audit report). We had to use over £3m of reserves to balance 2023/24 budget; we planned to use over £11m when we set the 2024/25 budget, but the current level of overspend for the year is forecast at quarter two to be more than £7.2m and increasing, which means we would be close to £19m of reserves to balance 2024/25. This is before the use of other reserves for specific purposes approved in the last budget report. We cannot continue to draw on our reserves at this level as they are running out. We are using a "cash-flat" budget approach which requires Budget Managers to operate their services for 2025/26 within their 2024/25 budget envelope; Budget Managers need to assume they will NOT be allocated any additional budget to cover pressures (e.g. pay inflation, contractual inflation, demand growth etc). This requires budget holders to identify ways to ensure that the budget envelope is not exceeded i.e. reductions in spend, increases in income etc. Alongside our CC contribution to the lobbying submissions made to Government by the LGA, CCN, f40 group etc on behalf of the sector, the Council has sent numerous letters (a number of which have been joint letters) to the PM, Deputy PM, Chancellor and various Secretary of State and Minsters, each highlighting the acute challenges and risks faced. Those issues have also been shared with Cornwall’s new MPs resulting in these concerns being raised by MPs in the Commons. The Council is legally required to set a balanced budget for the following year – it cannot approve a deficit budget. Context Council Tax: 2.99% for core Council Tax, 2% for Adult Social Care precept; 1% growth in taxbase. There was no specific mention of Council Tax thresholds in the Chancellor’s budget last week. We would assume that there will continue to be no restriction on T&PC precepts but await confirmation of that. 100% Council Tax Premium on Second Homes: inclusion of £23.8m additional income in budget, but £5m transferred to reserve as contingency for