Agenda item

Resolved to recommend the following to Full Council:

1)    Seek approval of full Council to include a budget of £300k for borrowing costs in 2024/25 and that this be funded by using the Treasury Management Reserve (as explained in paragraph 4.8).

2)    Seek approval of full Council to include an addition to the capital programme in 2024/25 to the extension and enhancement of the car parking offer in the District, at a location to be identified and that this is funded from revenue (car park income) (as explained in paragraph 5.6).

Cllr L Shires, Portfolio Holder for Finance, introduced this item. She said that the forecast deficit was set out on page 55, together with the reasons for it. She then referred to Cllr W Fredericks, Portfolio Holder for Housing & Benefits as a lot of the additional financial burden related to the increased cost of providing temporary accommodation to homeless families across North Norfolk. She went onto say that savings were being monitored closely – particularly the £250k that were yet to be identified.

She thanked officers for their hard work in achieving savings and grappling with the additional pressures.

Finally, the drop in interest rates would impact on income generation and this was set out in the report.

Cllr Fredericks then spoke about the impact of homelessness and the rise in costs for providing temporary accommodation. She said that the greatest financial challenge was the temporary accommodation bill. Homing households was a statutory duty and there was not set budget for this. Several factors had increased the number of homeless households, including a reduction in the supply of private rental properties available, domestic abuse and overcrowding. A lot of work had been undertaken trying to assist people before they became homeless but the reality was that it was an increasing problem. She added that she was speaking about North Norfolk residents. Work continued with housing associations and developers to provide homes in the long-term.

In conclusion, Cllr Fredericks said that the district council had to fund the bulk of this support and savings were being made across non-statutory services to try and meet the rising costs.

The Chairman thanked everyone for their hard work in supporting struggling households. He added that councils across the country were facing similar pressures.

He then said that he wanted to propose the following amendment to recommendation 4 (in italics) rather than identifying a specific location:

4. Seek approval of full Council to include an addition to the capital programme in 2024/25 to the extension and enhancement of the car parking offer in the District, at a location to be identified and that this is funded from revenue (car park income) (as explained in paragraph 5.6).

Cllr C Cushing said that it was good news that the savings that were yet to be identified were on track to be achieved. He referred to the forecast £1m deficit and he asked what work was underway to identify further savings and when members may be updated on this. Cllr Shires said that officers were working on savings and income generation and there were service reviews underway. She said that her aim was to report this in the next Budget Monitoring report.

The Director for Resources was invited to speak. She said that service reviews were being carried out. Some were already underway, including a review of the car park management contract. The budget position was being closely monitored and every step was being taken to reduce the level of deficit and vacant posts were being reviewed to see if they needed to be retained – particularly where they had been unfilled for some time. A lot of the pressure on the Council’s finances was due to demand led factors such as temporary accommodation but everything was being done to look at ways of increasing income to mitigate this. All savings being put forward by managers were being considered.

Cllr Cushing asked when the next Budget Monitoring report would be presented to members as this was likely to have crucial information. The Director for Resources said it would be presented to the November cycle of committee meetings.

The Chairman said that local government had reached a critical point and the Government’s budget announcement in October was awaited.

It was proposed by Cllr L Shires, seconded by Cllr T Adams

Resolved to recommend the following to Full Council:

1)    Seek approval of full Council to include a budget of £300k for borrowing costs in 2024/25 and that this be funded by using the Treasury Management Reserve (as explained in paragraph 4.8).

2)    Seek approval of full Council to include an addition to the capital programme in 2024/25 to the extension and enhancement of the car parking offer in the District, at a location to be identified and that this is funded from revenue (car park income) (as explained in paragraph 5.6).