Agenda and draft minutes

To receive any apologies for absence and temporary appointments.

Apologies were received from Cllr Haywood.

See guidance note on the back page.

Cllr Middleton made a declaration of interest, during the discussion on Environment and Highways budget proposals, as the portfolio holder for recycling at Cherwell District Council.

The Committee is recommended to APPROVE the minutes of the meeting held on 15^th November 2024 and to receive information arising from them.

The minutes from the 15 November 2024 meeting were AGREED as a true and accurate record subject to suggested amendments tabled by the Director of Property and Assets.

Members of the public who wish to speak at this meeting can attend the meeting in person or ‘virtually’ through an online connection. 

To facilitate ‘hybrid’ meetings we are asking that requests to speak or present a petition are submitted by no later than on 2^nd December 2024.  Requests to speak should be sent to the Scrutiny Officer at scrutiny@oxfordshire.gov.uk.

If you are speaking ‘virtually’, you may submit a written statement of your presentation to ensure that your views are taken into account. A written copy of your statement can be provided no later than 9am 2 working days before the meeting. Written submissions should be no longer than 1 A4 sheet.

There were none.

All Cabinet Members and Directors have been invited to attend and present their relevant areas of the indicative budget proposals 2025/26 to 2027/28.

The Committee is asked to consider the report and raise any questions, and to AGREE any recommendations it wishes to make to Cabinet arising therefrom.

An outline schedule for this item is included below:

All Cabinet Members and Directors were invited to attend and present their relevant areas of the indicative budget proposals 2025/26 to 2027/28.

    i.         Budget Overview & Questions

Cllr Liz Leffman, Leader of the Council, Cllr Dan Levy, Cabinet Member for Finance, and Lorna Baxter, Executive Director of Resources and section 151 Officer, presented an overview of the proposed budget for 2025/26 to 2027/28 and answered questions.

The Leader reported a £25 million budget gap for the year 2025-2026. However, a number of potential sources of income, including being permitted to raise the level of council tax beyond the budgeted 1.99% would close this gap. The council was considering raising council tax beyond 1.99% and sought the Committee's advice on this matter. The rise in National Insurance contributions also represented a significant demand on the Council resources. Notwithstanding these pressures, the Leader highlighted additional funds allocated to the capital budget to address highway issues, identified as a key issue by residents.

The Cabinet Member for Finance stated that the proposals were designed to respond to public consultations, particularly concerning road improvements. They also noted the importance of meeting statutory duties in the budget, such as caring for children and adults, which consumed a significant portion of the revenue budget. The Cabinet Member clarified that the Council would prioritise the statutory duties over non-statutory objectives.

The Executive Director of Resources and Section 151 Officer presented the key pressures and changes to income sources to the Committee. The 2025/26 indicative budget approved by Council in February 2024 showed a £13.9 million deficit, however contained within that is £15.9 million for inflation and £15.7 million for demographic changes in adults' and children's services. As part of the Autumn Budget, key funding sources included £1.3 billion for local government services, of which £600 million was for social care and £700 million was unringfenced. The distribution of funding was to be based on deprivation, potentially reducing Oxfordshire's usual share. Council tax flexibilities and locally retained business rates increase spending power by 3.2% at a national level.

Council tax was explained to potentially increase beyond 1.99%, up to 4.99%, which would assist with the budget gap. Oxfordshire's share of £500 million for road maintenance was pending, and there may have been a £4.5 million boost for bus services. Whilst being received from 2025/26 funding for extended producer responsibilities would become clearer from 2026/27 when producers have responded to packaging requirements.

Employers' national insurance was to rise to 15% and the national living wage to £12.21, increasing the Council’s budget pressures. The Household Support Fund however was to gain a billion pounds for 2025/26. Inflation was anticipated to stay above 2%, gradually decreasing until 2028. Details around outstanding funding sources were expected by December's end. Starting in 2025/26, a targeted funding reform approach was to be aligned with the Local Government finance settlement principles, based around lower needs and higher fund-raising abilities.

Members questioned what the Executive Director ’s (Resources) opinion was on whether Council tax should be  ...  view the full minutes text for item 44/24

The Committee is recommended to AGREE its work programme for forthcoming meetings, having heard any changes from previous iterations, and taking account of the Cabinet Forward Plan and of the Budget Management Monitoring Report.

The Committee resolved to AGREE to the proposed forward work plan, with the Scrutiny Manager to investigate the value of including Councillor Inductions on the forward plan.

Members were encouraged to respond to the councillor induction survey.

The Committee is recommended to NOTE the progress of previous recommendations and actions arising from previous meetings, having raised any questions on the contents.

The Action and Recommendation Tracker was NOTED by the Committee.

No responses to Scrutiny recommendations have been submitted since the previous meeting.

There were none.