3
There was submitted a report by the Director of Finance & Resources relative to the Revenue Budget and Council Tax for 2024/25, together with appendices detailing revenue estimates for 2024/25; estimates of expenditure and income for the year ended 31 March 2025; and the General Fund probable outturn for 2024/25.
The report provided an overview of the Council’s anticipated financial position on the General Fund revenue budget and set out information required for the Council to set its budget and Council Tax for 2024/25. It was recognised that moving into 2024/25 and beyond, the financial environment that local government in Scotland faced would remain heavily constrained, with substantial risks in the short term in relation to both cost growth and income restraints. Longer lasting legacy impacts on service costs, service demands and income streams were anticipated, as well as a lasting impact on transformation plans.
The report requested that these circumstances be taken into account when setting the 2024/25 budget, and also to recognise that the Council’s immediate and medium-term challenges remained significant. As outlined within the report, the Council’s medium-term outlook remained subject to considerable risk. Additionally, as reported throughout the year and subject to decisions taken by Council, there would be a need for the budget position in 2024/25 to rely heavily on the use of ringfenced reserves to address the forecasted budget deficit. This solution required to be viewed as temporary, and it was highlighted that the Council required to act in the near-term to contain spend within available resource on a recurring basis.
The report highlighted key elements of the Council’s revenue settlement, which included confirmation of revenue grant funding for the Council in 2024/25 of £416.455 million. After adjustment for new responsibilities, areas of growing responsibility and other conditional aspects of the settlement, this provided a like for like comparison to 2023/24 where the Council’s underlying core grant had increased by £1.507 million (0.4%) which was broadly marginally higher than the flat-cash position the Council had assumed. Additional funding to support the agreement of the local government pay offer for 2023/24 and in relation to the teachers’ pay offer for 2022/23 and 2023/24 had been announced over the course of the Parliamentary approval process for the Scottish Government Budget, however the distribution of this funding had not yet been agreed. It was noted that this additional funding was not reflected in the position outlined within the report, however, neither was the corresponding expenditure. On that basis, the underlying financial position outlined within the report remained valid.
In addition, the report intimated that the Scottish Government had opted not to announce a Public Sector Pay Policy for 2024/25 until after the UK Spring Budget was announced on 6 March. The report indicated that while there were now permanent cost and service impacts from the pandemic, pay and revenue grant would continue to be the two biggest determinants to the Council’s financial outlook. Members were advised that the Scottish Government block grant was likely to incorporate only very moderate increases over the remainder of the spending review period to 2025/26 and that this provided no confidence that the local government settlement in future years would reflect a sufficient degree of increase to address core budget pressures. The report highlighted that transformation and efficiency saving activity alone would not address the scale of financial pressures the Council would face over the medium-term.
The report advised that a scenario-based approach, varying the major influencing elements of the projections under a range of scenarios for the three-year period beyond 2024/25, had been applied and derived a forecast budget deficit range of broadly £45 - £50 million over the period, before any decisions on the level of Council Tax or other mitigating action. This forecast outlook was based on relatively tight grant and pay assumptions, informed by the current financial settlement and the Government’s Medium Term Financial Strategy, as well as likely affordability constraints in relation to future pay awards. Factoring in an assumption of 5% increase each year in Council Tax levels reduced this range to £30 - £35 million, essentially meaning the Council would need to target cost reductions and savings averaging at a minimum of £10 million each year to remain in financial balance. For 2024/25, budget assumptions had been updated as appropriate, including most notably the confirmed grant available to the Council and associated conditions, the impact of new statutory obligations, the impact of new obligations, the likely impact of increasing demographic and demand pressures and expected Council Tax yield levels for 2024/25. Taking account of the cumulative impact of each of these issues, there was a recurring budget deficit for 2024/25 of £9.284 million, subject to any further decisions taken by Members.
Given the scale and unprecedented nature of the financial sustainability challenge that lay ahead for the Council, in setting the 2024/25 budget, it was recommended that any proposed commitments from Members that would result in additional recurring expenditure increasing the projected medium-term deficit in future years should be supported by offsetting sustainable savings or increased resources arising from an increase in Council Tax. In addition, Members were encouraged to take a holistic view of the Council’s total resources, covering both capital and revenue and were reminded of unallocated capital resources available to the Council of £2 million, as detailed at item 4 of the agenda for the meeting.
An addendum to the report had been circulated to members in advance of the meeting setting out the Scottish Government's position in relation to the local government settlement following receipt of a letter from the Deputy First Minister and Cabinet Secretary for Finance on 21 February 2024. The letter indicated additional funding for the 2024/25 Local Government finance settlement of £62.7million, contingent upon expected announcements in the UK Spring budget on 6 March 2024, and on agreement to freeze Council Tax at current levels. Renfrewshire’s share of this funding, assuming the Council agreed to freeze Council Tax would be £4.897 million; broadly equivalent to a 4.4% Council Tax increase.
Councillor Shaw, seconded by Councillor Airlie-Nicolson, moved:
"1. That this Administration’s second budget will continue to deliver on its commitments set out in the Council Plan to create a fairer Renfrewshire built on innovation, wellbeing and opportunity; where improving outcomes for children and families underpins all that we do.
2. That as recommended by the Director, these budget proposals take a holistic view of resources available and include the use of the £2.000 million of available resources outlined in Agenda item 4 and direct them as follows:-
• Commit £1.000 million of capital resource to supplement the £4.000 million of general capital grant to fund a total £5.000 million roads maintenance and improvement programme;
• Recognising the importance of outdoor play and sports, commit £0.800 million to the provision of artificial playing surfaces through investment in sports facilities and through match funding bids for financial support from external grant providers; with a report on the allocation of funding to specific projects being the subject of a future report to the Leadership Board;
• Building on the previous substantial investment in our community halls, commit a further £0.130 million to allow for further refurbishment and repair work to be undertaken as required, with spend being prioritised to support the aims of the Council’s ongoing property review; and
• Commit £0.070 million to supplement the existing Retail Improvement Fund, which continues to deliver significant improvements in our town centres.
3. Households and families across Renfrewshire continue to be impacted by the cost of living crisis and we are concerned that for some poverty is deepening and inequalities are widening. Through our Fairer Renfrewshire programme, tackling inequality and poverty will continue to be key priorities for this Administration as we support communities to recover and thrive following the pandemic. Building on the success of this programme, this Administration commits further support through the following targeted interventions:
• £0.045 million to support Renfrewshire Citizens Advice Bureau to continue the delivery of its welfare rights service, building on the funding agreed in 2023/24 to commission the delivery of advice services by the bureau over a 2 year period.
• £0.100 million to provide a targeted programme of summer activities for children and young people from low income families, working across Council services with community groups and third sector organisations across Renfrewshire to ensure that our most vulnerable families are able to access a range of activities and healthy food over the summer period.
• £0.040 million to support ROAR to work with the Council and partners to explore the inequalities experienced by older people in Renfrewshire and pilot interventions which tackle issues such as social isolation and connection and potential barriers to accessing support.
• £0.100 million to strengthen engagement with young people across Renfrewshire communities, including the targeting of activities to support our most vulnerable children and young people in Renfrewshire through the development of a youth-led programme which will provide opportunities for young people to improve their safety, health and wellbeing and get involved in activities which will enhance and promote their community
• £0.100 million to support delivery of the Dolly Parton Imagination Library programme in Renfrewshire, which sees every child aged between 2 and 5 receive a book every month, and supports our work in Renfrewshire to improve levels of literacy and reduce the poverty related attainment gap.
• £0.070 million to fund for a further year the Who Cares Scotland Communities that Care programme within Renfrewshire’s educational establishments, continuing the Council’s support for the care experienced community and reinforcing our commitment to deliver on The Promise.
4. In support of the Fairer Renfrewshire aims above, Council agrees to allocate top-up funding of £0.400 million to the Scottish Welfare Fund, to be funded from the anticipated underspend in Council Tax Reduction resource in 2023/24, which will be allocated to the Welfare Reform ringfenced reserve for this purpose. In addition, and funded from the same 2023/24 underspend, Council commits to allocate £0.300 million to support a £50 winter school clothing payment to each child eligible for school clothing grant, building on the support provided in 2022 and 2023.
5. Council recognises the success of the Team Up to Clean Up campaigns of recent years, and the importance of clean neighbourhoods. Council will therefore allocate £0.250 million of ringfenced funding to continue the Environment and Place programme, including Team Up to Clean Up; and commits a further £0.200 million to continue the work of the environmental task force, including a focus on fly-tipping. In addition, Council commits £0.025 million to the ongoing programme of public litter bin replacements.
6. Council recognises the previous £10 million commitment to fund a replacement Thorn Primary School, and also notes that the Council was unsuccessful in its bid for additional funding from the Learning Estate Investment Programme managed by the Scottish Futures Trust. Council reaffirms its commitment to this project and commits a further £4.000 million of capital resource, funded by prudential borrowing, with the revenue costs of this borrowing (estimated at £0.280 million per annum) be built in to financial plans from the 2025/26 financial year.
7. Council has made significant investment in Paisley town centre, including in the cultural and heritage buildings which are so important to the economic revival of the town centre. Further recognising the unique cultural heritage of the Oakshaw area of the town, Council commits £0.050 million to the development of the Oakshaw Heritage Trail.
8. Commit £0.120 million over 2 years to fund a dedicated planning enforcement officer post which will ensure improved compliance and monitoring of planning approvals.
9. Build on the success of cultural investment in prior years with a further £0.200 million to support development of partnership arrangements with cultural bodies in Renfrewshire. This funding will supplement existing budgets to create a total £1.000 million package of support for local artists and cultural organisations over the next three years, fulfilling a decade of support for culture in Renfrewshire.
10. Recognising the importance of our school music service, Council allocates £0.025 million to further support the service in 2024/25, celebrating the success of our young musicians.
11. Council also recognises the need to maintain a prudent level of unallocated reserves given the very high level of risk over the medium term as outlined in the Director’s report; and as previously agreed by Council, commits to maintain the Council’s level of unallocated reserve at a minimum of £10.000 million moving into 2024/25. Council also agrees a draw of £0.700 million from the welfare reform reserve as outlined at paragraph 4 above, and a further £5.712 million from the ringfenced financial sustainability reserve in order to achieve the statutory breakeven budget position (noting that this draw may be reduced should further funding be allocated by the Scottish Government as outlined in the addendum report to Item 3 on the agenda); and commits that action will be taken over the near term to bring the Council’s expenditure in line with available resource on a recurring basis; thereby ensuring the Council’s ongoing financial sustainability.
12. In line with the conditions set out in the 2024/25 financial settlement, agree to the recommendation outlined in Table 2 of the Director’s report to make available £10.926 million of recurring resources to Renfrewshire HSCP; and in addition provide on a recurring basis a further £1.426 million, being the proportionate share of funding received in relation to pay awards in 2023/24.
13. To agree the base budget assessment for all services for 2024/25 as recommended by the Director of Finance and Resources and agree a 2024/25 base budget of £519.560 million.
14. To agree to make provision in 2024/25 for pay inflation as detailed in section 5.5 of the Director’s report and make no provision for general non-pay inflation, as recommended by the Director.
15. To agree to a general 5% inflationary increase in charges for services as recommended in the Director’s report, subject to the note at paragraph 20 below.
16. To agree the resource allocations for 2024/25 for all services, as amended by these proposals.
17. To agree the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions.
18. Subject to agreement of the above, to agree that the council tax for 2024/25 be set at £1,436.17 for Band D subjects, representing a 0.0% increase on the 2023/24 level, and for all bandings to be set at:
Band 2023/24 2024/25
A 957.45 957.45
B 1,117.02 1,117.02
C 1,276.60 1,276.60
D 1,436.17 1,436.17
E 1,886.97 1,886.97
F 2,333.78 2,333.78
G 2,812.50 2,812.50
H 3,518.62 3,518.62
Note that the freeze in the rate of council tax will release £4.897 million of funding from the Scottish Government, and that this decision to freeze council tax provides some respite from increasing costs at a difficult time for many households. Further note however, that the compensatory funding provided by the Scottish Government is equivalent to a 4.4% increase in council tax, when the assumption within the Council’s medium term financial outlook was for an increase of 6%; and therefore the Council will require to make up this shortfall in future years in order to achieve the targeted 20% total increase over the four year period from 2024/25; clearly demonstrating the sound financial management this Administration is committed to.
Council also agrees with the Director’s recommendations in the supplementary report to Item 3, in relation to any additional funding which may flow to the Council as outlined in the letter received from the Depute First Minister on 21 February, that this funding will be used to reduce the Council’s recurring financial deficit.
19. Subject to agreement of the points above, agree that the Council’s budget is supported by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement.
20. To agree to increase other charges for services by 5% (as detailed in paragraph 15 above) or where appropriate by the rate set in national legislation or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised
(a) to round the charge up or down to a figure deemed by them appropriate, and
(b) not to impose any increase, if having reviewed the implications of the increase, he or she determines it would be inappropriate to do so, having regard to any material factor applicable to the goods or services to which the charge relates.
To note the requirement of financial code 13 that Directors review the amounts their departments charge for goods or services and if they think any charge needs to be increased, they will recommend this to the appropriate Board. The Council therefore agrees that when a Director carries out such a review and believes a charge for goods or services should be levied which reflects an increase greater than the increase of 5% or the rate set in national legislation or guidance, he or she will be entitled to recommend the same to the appropriate Board for approval."
Declaration of Interest
Having read the terms of the motion, Councillor Montgomery declared an interest in item 3 for the reason that he was an employee of the Renfrewshire Citizens Advice Bureau. Councillor Montgomery indicated that as he had declared an interest, he would leave the meeting during any discussion and voting on the item.
Sederunt
Having declared an interest Councillor Montgomery left the meeting.
Councillor Ann-Dowling, seconded by Councillor McMillan, moved as an amendment:
"1. That Renfrewshire Labour recommits to addressing the impact, mitigation and prevention of poverty and inequality for the benefit of all Renfrewshire citizens, with particular concern for the unique vulnerabilities and needs of children and young people. Labour is committed to making life better by supporting dependable, quality public transport, tackling poor housing and road standards, and improving mental health care and ASN education. The scope of this budget reflects that it has been set within unprecedented financial constraints and challenges and therefore prioritises available resources on local priorities.
2. That as recommended by the Director, these budget proposals take a holistic view of resources available and include the use of the £2.000 million of available capital resources held in the Strategic Asset Management Fund outlined in Agenda item 4.
3. Council agrees the following capital commitments:
a. £3.000 million of capital resources be directed to the roads and footways capital programme in addition to the £4.000 million of allocated capital grant funding, bringing total resources for roads investment in 24/25 to £7.000 million. This additional £3.000 million of resource will be funded by £2.000 million of unallocated resource held in the Strategic Asset Management Fund, supplemented with a further £1.000 million of capital resource funded through prudential borrowing, incurring an ongoing revenue cost of £0.070 million.
4. Council agrees the following recurring revenue commitments, to be funded in 2024/25 from the ringfenced financial sustainability reserve and thereafter to be incorporated into the Council’s base budget plans:
a. £0.070 million to support prudential borrowing of £1m which will be utilised for additional investment in Renfrewshire’s roads, as outlined above.
5. Council agrees the following non-recurring investments, to be funded from the financial sustainability reserve:
a. In recognition of the failure of the SNP Government to deliver on its manifesto commitment of universal free school dinners for all primary school children, council commits £2.200 million available for schools to consider how best to implement, to provide non-means tested, free healthy snack options in all Renfrewshire Primary schools and Secondary schools to mitigate the impact of in-work poverty and to ensure no Renfrewshire child goes through the school day hungry.
b. Labour ensures that children are supported in the summer holidays as well as during term time. Council commits to investing £0.100 million to ensure the provision of a Summer Activity & Food Programme for Renfrewshire children and young people from low-income families during the school holidays, encouraging them to access activities and healthy food.
c. Bus services across Renfrewshire are in crisis. Labour condemns the cycle of decline since our buses were deregulated in 1986. Bus fares go up while vital bus services continue to be cut. Council commits £0.040 million to provide support to Council Officers in facilitating a public transport feasibility study to explore how to make bus services work better for Renfrewshire’s communities and economy.
d. Council commits £0.010 million to support community bus service engagement & feedback for local community interest groups.
e. Council will invest £0.300 million in the provision of an Interrupted Learning Service pilot and ASN additional support services. A significant number of pupils are struggling with mental health issues and related additional support needs, often resulting in long-term absence from school. Labour supports the parents of children who have emotionally based school avoidance or for neurodivergent reasons struggle with a school environment. Early intervention is essential; we will deliver a unique Interrupted Learners pilot focused on Primary age pupils to assist children back into formal learning through personal one-on-one and group support.
f. Council approves additional top-up funding for Discretionary Housing Payments (DHP) of £0.150 million
6. Council further agrees the following:
a. Council instructs the Chief Executive to write to the Scottish Government Cabinet Secretary for Finance to request that all 2024/25 pay awards are fully funded by Scottish Government where council has a financial liability to fund any pay award shortfalls.
b. Council will maintain the current base budget provision of school-based art, music lessons and sports to ensure mental health and well-being benefits are maintained for pupils.
c. Council instructs officers to investigate funding options to enable a new Johnstone High School to be progressed and bring back a report to the Education and Children’s Services Policy Board by September 2024.
7. As recommended in the Director’s report; commits to maintain the Council’s level of unallocated reserve at a minimum of £10.000 million moving into 2024/25. Council agrees the investments above be funded in 2024/25 by £7.257 million from the financial sustainability reserve, and £2.000 million from the Strategic Asset Management Fund. This draw from the financial sustainability reserve will be reduced to an estimated £5.169 million should the Council receive a proportionate share of the £62.7m outlined in the supplementary report to Item 3. Council also agrees the Director’s recommendation in the supplementary paper to Item 3, whereby any additional funding received from the Scottish Government as a result of the Depute First Minister announcement on 21 February, be directed to reduce the recurring deficit position.
8. In line with the conditions set out in the 2024/25 financial settlement, agree to the recommendation outlined in Table 2 of the Director’s report to make available £10.926 million of recurring resources to Renfrewshire HSCP; and in addition, provide on a recurring basis a further £1.426 million, being the proportionate share of funding received in relation to pay awards in 2023/24.
9. To agree the base budget assessment for all services for 2024/25 as recommended by the Director of Finance and Resources and agree a 2024/25 base budget of £519.560 million.
10. To agree to make provision for pay inflation as detailed in section 5.5 of the Director’s report and make no general provision for general non-pay inflation as recommended by the Director.
11. To agree to a general 5% inflationary increase in charges for services as recommended by the Director and subject to the note at paragraph 17 below.
12. To agree the resource allocations for 2024/25 for all services, as amended by these proposals.
13. To agree the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions.
14. In relation to the decisions above, Council instructs officers to conduct equalities and human rights impact assessments as required for each recommendation. If required following implementation, the actual impact of the recommendation and the mitigating actions will be reviewed and monitored.
15. Subject to agreement of the above, to agree that the council tax for 2024/25 be increased by 0.0% and therefore set Band D subjects at £1,436.17 and for all bandings to be set at:
Band 2023/24 2024/25
A 957.45 957.45
B 1117.02 1117.02
C 1276.60 1276.60
D 1436.17 1436.17
E 1886.97 1886.97
F 2333.78 2333.78
G 2812.50 2812.50
H 3518.62 3518.62
Note that this decision to freeze council tax at 2023/24 levels will generate compensatory funding from the Scottish Government of £4.897 million, with a potential further estimated £2.088 million dependent on the UK Spring Budget impact on the overall Scottish Government financial position.
16. Subject to agreement of the points above, agree that the Council’s budget is underpinned by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement.
17. To agree to increase other charges for services by 5% (as detailed in paragraph 11 above) or where appropriate by the rate set in national legislation or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised.
(a) to round the charge up or down to a figure deemed by them appropriate, and
(b) not to impose any increase, if having reviewed the implications of the increase, he or she determines it would be inappropriate to do so, having regard to any material factor applicable to the goods or services to which the charge relates.
To note the requirement of financial code 13 that Directors review the amounts their departments charge for goods or services and if they think any charge needs to be increased, they will recommend this to the appropriate Board. The Council therefore agrees that when a Director carries out such a review and believes a charge for goods or services should be levied which reflects an increase greater than the increase of 5% or the rate set in national legislation or guidance, he or she will be entitled to recommend the same to the appropriate Board for approval.
Adjournment
The meeting adjourned at 10.12 am to allow members to consider the motion and amendment. The meeting reconvened at 10.35 am.
On the roll being called, the following members voted for the amendment: Councillors Ann-Dowling, Clark, Davidson, Gilmour, Grady, G Graham, N Graham, Gray, Leishman, J MacLaren, McCulloch, McDonald, McGonigle, McGuire, McMillan, Mullin and Smith.
The following members voted for the motion: Councillors Adam, Airlie-Nicolson, Burns, J Cameron, Provost L Cameron, Councillors Campbell, Andy Doig, Audrey Doig, Hannigan, Hughes, Innes, MacFarlane, K MacLaren, M MacLaren, McEwan, McGurk, McNaughtan, Mylet, Nicolson, Paterson, Rodden, Shaw and Steel.
The following members abstained: Councillors Devine and Hood.
17 members having voted for the amendment, 23 members having voted for the motion and 2 members having abstained, the motion was accordingly declared carried.
DECIDED:
1. That this Administration’s second budget will continue to deliver on its commitments set out in the Council Plan to create a fairer Renfrewshire built on innovation, wellbeing and opportunity; where improving outcomes for children and families underpins all that we do.
2. That as recommended by the Director, these budget proposals take a holistic view of resources available and include the use of the £2.000 million of available resources outlined in Agenda item 4 and direct them as follows:-
• Commit £1.000 million of capital resource to supplement the £4.000 million of general capital grant to fund a total £5.000 million roads maintenance and improvement programme;
• Recognising the importance of outdoor play and sports, commit £0.800 million to the provision of artificial playing surfaces through investment in sports facilities and through match funding bids for financial support from external grant providers; with a report on the allocation of funding to specific projects being the subject of a future report to the Leadership Board;
• Building on the previous substantial investment in our community halls, commit a further £0.130 million to allow for further refurbishment and repair work to be undertaken as required, with spend being prioritised to support the aims of the Council’s ongoing property review; and
• Commit £0.070 million to supplement the existing Retail Improvement Fund, which continues to deliver significant improvements in our town centres.
3. Households and families across Renfrewshire continue to be impacted by the cost of living crisis and we are concerned that for some poverty is deepening and inequalities are widening. Through our Fairer Renfrewshire programme, tackling inequality and poverty will continue to be key priorities for this Administration as we support communities to recover and thrive following the pandemic. Building on the success of this programme, this Administration commits further support through the following targeted interventions:
• £0.045 million to support Renfrewshire Citizens Advice Bureau to continue the delivery of its welfare rights service, building on the funding agreed in 2023/24 to commission the delivery of advice services by the bureau over a 2 year period.
• £0.100 million to provide a targeted programme of summer activities for children and young people from low income families, working across Council services with community groups and third sector organisations across Renfrewshire to ensure that our most vulnerable families are able to access a range of activities and healthy food over the summer period.
• £0.040 million to support ROAR to work with the Council and partners to explore the inequalities experienced by older people in Renfrewshire and pilot interventions which tackle issues such as social isolation and connection and potential barriers to accessing support.
• £0.100 million to strengthen engagement with young people across Renfrewshire communities, including the targeting of activities to support our most vulnerable children and young people in Renfrewshire through the development of a youth-led programme which will provide opportunities for young people to improve their safety, health and wellbeing and get involved in activities which will enhance and promote their community
• £0.100 million to support delivery of the Dolly Parton Imagination Library programme in Renfrewshire, which sees every child aged between 2 and 5 receive a book every month, and supports our work in Renfrewshire to improve levels of literacy and reduce the poverty related attainment gap.
• £0.070 million to fund for a further year the Who Cares Scotland Communities that Care programme within Renfrewshire’s educational establishments, continuing the Council’s support for the care experienced community and reinforcing our commitment to deliver on The Promise.
4. In support of the Fairer Renfrewshire aims above, Council agrees to allocate top-up funding of £0.400 million to the Scottish Welfare Fund, to be funded from the anticipated underspend in Council Tax Reduction resource in 2023/24, which will be allocated to the Welfare Reform ringfenced reserve for this purpose. In addition, and funded from the same 2023/24 underspend, Council commits to allocate £0.300 million to support a £50 winter school clothing payment to each child eligible for school clothing grant, building on the support provided in 2022 and 2023.
5. Council recognises the success of the Team Up to Clean Up campaigns of recent years, and the importance of clean neighbourhoods. Council will therefore allocate £0.250 million of ringfenced funding to continue the Environment and Place programme, including Team Up to Clean Up; and commits a further £0.200 million to continue the work of the environmental task force, including a focus on fly-tipping. In addition, Council commits £0.025 million to the ongoing programme of public litter bin replacements.
6. Council recognises the previous £10 million commitment to fund a replacement Thorn Primary School, and also notes that the Council was unsuccessful in its bid for additional funding from the Learning Estate Investment Programme managed by the Scottish Futures Trust. Council reaffirms its commitment to this project and commits a further £4.000 million of capital resource, funded by prudential borrowing, with the revenue costs of this borrowing (estimated at £0.280 million per annum) be built in to financial plans from the 2025/26 financial year.
7. Council has made significant investment in Paisley town centre, including in the cultural and heritage buildings which are so important to the economic revival of the town centre. Further recognising the unique cultural heritage of the Oakshaw area of the town, Council commits £0.050 million to the development of the Oakshaw Heritage Trail.
8. Commit £0.120 million over 2 years to fund a dedicated planning enforcement officer post which will ensure improved compliance and monitoring of planning approvals.
9. Build on the success of cultural investment in prior years with a further £0.200 million to support development of partnership arrangements with cultural bodies in Renfrewshire. This funding will supplement existing budgets to create a total £1.000 million package of support for local artists and cultural organisations over the next three years, fulfilling a decade of support for culture in Renfrewshire.
10. Recognising the importance of our school music service, Council allocates £0.025 million to further support the service in 2024/25, celebrating the success of our young musicians.
11. Council also recognises the need to maintain a prudent level of unallocated reserves given the very high level of risk over the medium term as outlined in the Director’s report; and as previously agreed by Council, commits to maintain the Council’s level of unallocated reserve at a minimum of £10.000 million moving into 2024/25. Council also agrees a draw of £0.700 million from the welfare reform reserve as outlined at paragraph 4 above, and a further £5.712 million from the ringfenced financial sustainability reserve in order to achieve the statutory breakeven budget position (noting that this draw may be reduced should further funding be allocated by the Scottish Government as outlined in the addendum report to Item 3 on the agenda); and commits that action will be taken over the near term to bring the Council’s expenditure in line with available resource on a recurring basis; thereby ensuring the Council’s ongoing financial sustainability.
12. In line with the conditions set out in the 2024/25 financial settlement, agree to the recommendation outlined in Table 2 of the Director’s report to make available £10.926 million of recurring resources to Renfrewshire HSCP; and in addition provide on a recurring basis a further £1.426 million, being the proportionate share of funding received in relation to pay awards in 2023/24.
13. To agree the base budget assessment for all services for 2024/25 as recommended by the Director of Finance and Resources and agree a 2024/25 base budget of £519.560 million.
14. To agree to make provision in 2024/25 for pay inflation as detailed in section 5.5 of the Director’s report and make no provision for general non-pay inflation, as recommended by the Director.
15. To agree to a general 5% inflationary increase in charges for services as recommended in the Director’s report, subject to the note at paragraph 20 below.
16. To agree the resource allocations for 2024/25 for all services, as amended by these proposals.
17. To agree the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions.
18. Subject to agreement of the above, to agree that the council tax for 2024/25 be set at £1,436.17 for Band D subjects, representing a 0.0% increase on the 2023/24 level, and for all bandings to be set at:
Band 2023/24 2024/25
A 957.45 957.45
B 1,117.02 1,117.02
C 1,276.60 1,276.60
D 1,436.17 1,436.17
E 1,886.97 1,886.97
F 2,333.78 2,333.78
G 2,812.50 2,812.50
H 3,518.62 3,518.62
Note that the freeze in the rate of council tax will release £4.897 million of funding from the Scottish Government, and that this decision to freeze council tax provides some respite from increasing costs at a difficult time for many households. Further note however, that the compensatory funding provided by the Scottish Government is equivalent to a 4.4% increase in council tax, when the assumption within the Council’s medium term financial outlook was for an increase of 6%; and therefore the Council will require to make up this shortfall in future years in order to achieve the targeted 20% total increase over the four year period from 2024/25; clearly demonstrating the sound financial management this Administration is committed to.
Council also agrees with the Director’s recommendations in the supplementary report to Item 3, in relation to any additional funding which may flow to the Council as outlined in the letter received from the Depute First Minister on 21 February, that this funding will be used to reduce the Council’s recurring financial deficit.
19. Subject to agreement of the points above, agree that the Council’s budget is supported by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement.
20. To agree to increase other charges for services by 5% (as detailed in paragraph 15 above) or where appropriate by the rate set in national legislation or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised
(a) to round the charge up or down to a figure deemed by them appropriate, and
(b) not to impose any increase, if having reviewed the implications of the increase, he or she determines it would be inappropriate to do so, having regard to any material factor applicable to the goods or services to which the charge relates.
To note the requirement of financial code 13 that Directors review the amounts their departments charge for goods or services and if they think any charge needs to be increased, they will recommend this to the appropriate Board. The Council therefore agrees that when a Director carries out such a review and believes a charge for goods or services should be levied which reflects an increase greater than the increase of 5% or the rate set in national legislation or guidance, he or she will be entitled to recommend the same to the appropriate Board for approval.
Sederunt
Councillor Montgomery rejoined the meeting prior to consideration of the following item of business.