Issue - meetings

Purpose: To set out to the Executive the process for the delivery of the 2025-26 budget papers. The 2024-25 Revenue Budget included the highest level of savings that the Council has ever been required to make. The combination of very high inflationary rises, significant increases in demand for services and national core spending power for local government remaining below 2010-11, all led to this very high level of saving need. The capital budget was constructed with the revenue budget clearly in mind, and it is crucial that two budgeting processes complement one another to enable the delivery of the Council Strategy 2023-27.

Resolved that: Executive note the report.

This decision is not subject to call in as:

·     Report is to note only.

Councillor Iain Cottingham introduced a report (Agenda Item 6), which set out to the Executive the process for the delivery of the 2025-26 budget papers.

It was reported that the Council would be moving towards activity-based budgeting methodology. Councillor Cottingham suggested that such an approach was better for decision making, would review outputs to drive costs, would increase the ability for cross departmental budget collaboration and would allow improved data-based decisions in relation to the revenue budget.

Councillor Cottingham reported that from a Capital expenditure perspective the Council would move towards a zero-based budgeting approach.

Councillor Ross Mackinnon wished the Executive luck with the new approach.

Councillor David Marsh referred to section 5.3 (c) of the report and queried how concerned the Council should be in relation to the High Needs Block deficit. Councillor Cottingham speculated that on the balance of probabilities the new government may call in the debt which would lead to financial difficulties for the Council.   

RESOLVED that: Executive noted the report