Agenda item

Cllr Anne Hall took the Chair for this item.

The Director of Finance gave a presentation on the draft budget covering key areas.

The budget process and timeline was outlined, with Council set to approve the final budget on 25 February 2026. LGR and the Fairer Funding review were highlighted as key factors impacting the budget.

Questions, clarification and responses included the following points:

·        Concern was expressed as to the level of the Council’s debt and whether the Council could meet its obligations should LGR be delayed or not go ahead. It was noted that the Council was obliged to evidence that debt could be afforded;

·        With regard to figures for net interest, it was noted that interest receipts were predicted to drop due to lower interest rates and lower levels of cash held by the Council in investments. Interest payable would also drop due to lower interest rates and the removal of some capital projects from the programme;

·        Regarding the new town, Marlcombe, it was noted that an assertive, upfront approach was needed and that this would come with a significant funding requirement;

·        The outturn report at the end of the financial year would provide detailed information on the level of various reserves;

·        Regarding the reactive and preventative maintenance of trees, it was confirmed that there was budget provision, however, the Director of Place would look into this further. The Portfolio Holder for Environment – Operations advised that trained staff were in place although an unforeseen event, such as a serious storm, could place the service under pressure;

·        It was noted that there was a significant increase in staff costs in the General Fund FTE increases. Increases in the homelessness team and digital team were due to staff moving onto permanent contracts and it was agreed that further description in the Budget Book would be helpful;

·        It was noted that movement of staff and teams between services had impacted figures in the Budget Book;

·        It was confirmed that there was budget for the train station toilets in Exmouth to remain open;

·        It was noted and commended that fees and charges included an increase in line with inflation.

Appendix 1 – Draft Revenue Budget 2026 – 2027 – Special Items

The Committees considered the Special Items set out at Appendix 1 [page 59] of the report.

1.     Play Park Consolidation Study - £20,000

The intent behind the study was to provide a complete understanding of the legal obligations regarding the provision of play parks, including in respect of S.106 agreements. The study would also assist with understanding implementation planning moving forwards into LGR.

RECOMMENDATION TO CABINET:

That the Play Park Consolidation Study at a cost of £20,000 be included in the budget.

2.     Cultural Strategy Delivery - £37,500

3.     Tourism Strategy Delivery - £30,000

Activity had previously been funded through the UKSPF [UK Shared Prosperity Fund] which would be coming to an end after the current financial year. Work had been undertaken to clarify which elements of the activities should continue in the next financial year.

The Portfolio Holder for Culture, Leisure, Sport and Tourism noted that the Culture Strategy and the Tourism Strategy had been developed to complement each other and both supported the local economy.

RECOMMENDATION TO CABINET:

That the Cultural Strategy Delivery at a cost of £37,500 and the Tourism Strategy Delivery at a cost of £30,000 be included in the budget.

4. CVC service by Devon Communities Together - £60,000 and £3,000 for Devon Connect platform

This had also been funded through the UKSPF funding and provided significant help throughout the District.

RECOMMENDATION TO CABINET:

That the CVC service by Devon Communities Together - £63,000 be included in the budget.

5 and 6. Streetscene Operational Staff pressures - £118,000 and £34,000

This request reflected the need for additional capacity within the Streetscene service due to growth in the District, particularly in the west end of East Devon, and seasonal fluctuations in the summer months.

The Portfolio Holder Environment – Operations noted that the budget for Streetscene had not increased in line with development in recent years.

RECOMMENDATION TO CABINET:

That the amounts of £118,000 and £34,000 to cover Streetscene operational staff pressures be included in the budget.

7. LATCo client side manager - £60,340

The Director of Finance advised that this item had been withdrawn.

The above agreed items would now be incorporated into the draft budget going forwards for agreement by Cabinet.

RECOMMENDATION TO CABINET:

That the draft revenue and capital budgets for 2026 – 2027, including the associated fees and charges schedule, be approved.