Vital services protected as North Northants budget tackles the challenges of a tough economic climate and increasing demand for services
Finance11 December 2024
Protecting and investing in our local frontline services against a backdrop of continued national financial uncertainty is the focus of North Northamptonshire Council’s budget proposals for the next financial year (2025/2026).
A report to be discussed at Executive on December 19 - will propose a balanced revenue budget for 2025/2026 as well as outlining the medium-term financial plan for the following three years.
The proposed net revenue budget for 2025/2026 is £400.93 million, excluding the Dedicated Schools Grant. This money provides a range of services to residents and businesses across the area including care to vulnerable adults and children, education, the disposal and collection of waste, highways maintenance, economic development, housing and support for those that are homeless.
A commitment to maintain vital service provision has seen the Council invest an additional £51.9 million into services, including £29.2 million into adult social care and £6.2 million into children’s services to protect the most vulnerable in our communities and address growing demand for these vital services.
These pressures are, in part, offset by savings, efficiencies and further income of £26.3 million. Taken together with an improvement in funding expected from business rates, Council Tax and government grants the Council has been able to set a balanced budget for 2025/2026.
Council fees and charges have been reviewed for 2025-2026 and set in accordance with the Council’s constitution.
The Council will also be proposing a programme of capital investment totalling £180.4m over the four-year period 2025-2029 across a number of schemes including investing over £43.6m into highways, £36.6m for continued investment into our Housing Stock, £27.9m for investment into schools, £8.1m to support facilities for those with disabilities, £8.2m in improving digital infrastructure and £2.6m for Electrical Vehicle infrastructure.
I’m proud to be presenting Executive with a balanced budget which maintains service provision for the residents of North Northamptonshire, which is quite an achievement in the current economic climate.Cllr Lloyd Bunday, the Council’s Executive Member for Finance and Transformation
I’d like to thank all of those who have been involved in bringing this report and medium-term plan forward and for building the financial stability required so we can operate efficiently and effectively.
The financial challenges of recent years continue to persist against an ongoing background of global economic uncertainty. What we’re presenting to Executive is a prudent budget for the next financial year which represents financial stability for the residents of North Northamptonshire.Jason Smithers, Leader of the Council
I’m delighted that we’re able to present a balanced budget with no service cuts.
The budget is not just about how to manage within available resources but also where funding should be invested. There is a balance to be maintained between encouraging growth, providing high quality universal services and protecting those that are the most vulnerable.
Council Tax
Government has permitted local authorities such as North Northamptonshire Council to increase the Council Tax rate by 4.99%, including 2% for the adult social care precept, in recognition of the difficult financial climate.
The authority is proposing an increase allowed by Government in council tax of 4.99%.
This increase would contribute around an additional £11m per year towards inflationary and demand lead pressures to enable services to be maintained and would represent a Band D level of Council Tax for North Northamptonshire Council of £1,827.06 for 2025/2026. This means that North Northamptonshire Council’s Council Tax rate will be in lower third for unitary councils.
This is an annual increase of £86.84 (equivalent to £1.67 per week) from the Band D Council Tax level set in 2024/2025.
Increasing Council Tax has the advantage of providing stable funding for the future, helping to further protect services, and will provide the Council with a degree of certainty around funding. This is important as there will be a review of how government grants are distributed from 2026/2027
This Band D figure does not include the Council Tax for individual Town and Parish Councils or the Council Tax set for Fire and Police by the Northamptonshire Police, Fire and Crime Commissioner.
There is no change to the Local Council Tax Support Scheme which will continue at 25%
Housing Revenue Account
The Housing Revenue Account (HRA) is a separate ring-fenced account within the Council for the income and expenditure associated with its housing stock.
The HRA does not directly impact on the Council’s wider general fund budget or on the level of council tax. Income to the HRA is primarily received through the rents and other charges paid by tenants and leaseholders.
This year’s Draft Budget for the HRA is in a balanced position while crucially the medium-term is also showing a balanced position.
There is also a proposed rent increase of 2.7% for the next financial year, which accords with the Government’s rent setting policy for 2025/2026. Any funding received by the HRA is retained within the HRA and will be used to support investment into the Council’s housing stock through improvements and maintenance.
Dedicated Schools Grant
The Dedicated Schools Grant (DSG) is a ring-fenced grant from Government to support education related services.
The allocation is driven by a number of factors, but predominantly relates to pupil numbers. For 2025/2026 the indicative settlement is £414.5m covering the schools block, high needs block, early years block and the central schools’ services block.
Councils across the country are generally seeing significant pressures within services funded through the high needs block, which supports children and young people with special educational needs and disabilities from 0 to under 25 years of age.
Next steps
The draft revenue budget will be discussed at a meeting of the Executive on 19 December and, if approved, a consultation on the proposals will start the same day, running until midnight on 24 January, 2025.
The Executive will then meet on 6 February, 2025, to consider final budget proposals for recommendation to Full Council on 20 February, 2025.