Redditch Borough Council Declares Its Three-Year Budget Plans

Executive members are set to deliberate on a proposed freeze to Council Tax in 2025/26 at their next meeting in papers on Tuesday.

The strong financial position laid out within the proposed budget, released yesterday, will allow the Council the flexibility to potentially freeze Council Tax prices in the year 2025/26. Council Tax will still rise 2.99% in the year 2024/25 to enable the Council to continue to provide resilient services whilst recouping reserves that will allow us to be a resilient authority at the end of the proposed three-year period.

Portfolio Holder for Finance and Enabling, Cllr. Luke Court, said: "This budget reflects a robust position for the council going forward, including a projected surplus of £100k a year for the next three years and over 1 million pounds of funding reallocated to our general reserves. As a result, the council is budgeting for a council tax freeze next year to help residents with the cost of living, while also supporting our services.

This strong financial position is only possible following the council’s decision to invest in a community hub, delivering £400K of savings whilst maintaining service provision.

We remain aware of the risk factors facing the sector and council, particularly regarding accounts awaiting external audit. However, the council has successfully listened to and actioned advice that was received from independent auditors Grant Thornton, meeting five of the six recommendations with the Auditors commenting on the councils “strong position for the medium term”.

The budget reflects a hardy position for the council going forward, including a projected surplus of £100k a year for the next three years. This forecasted £300k surplus at the end of the three-year period will mean the council will have almost double the recommend 5% net budget level reserve.

Leader of the Council, Cllr. Matt Dormer, said: “This buoyant budget reflects the hard work this council has done to benefit the residents of Redditch and return to a robust position. We continue to be able to deliver on plans to unlock the town’s potential through regeneration and invest in an incredible transformation programme.

“We recognise that times are hard for many of our residents and businesses, and we have worked hard to be able to create a budget with such surplus that it will allow us the option to freeze council tax in 2025/26. This budget shows that prospects are bright for this Council and our residents.”

The report also contains details of the Capital Programme which includes all the initiatives connected with the Towns Fund and the Town Hall Redevelopment; all of which will move into build phases in the next three years.

It also outlines plans for investment in Arrow CP and the Refuse Fleet.

Included within the report is also the news that £40 million will be invested into existing and new housing stock over the next four years thanks to a healthy position within the HRA Budget.

In 2022, the Council was issued a Section 24 notice for failing to deliver its 2020/21 accounts following a range of issues, including staff vacancies, technical problems with the financial system, and challenges following the COVID-19 pandemic.

The meeting of the Executive will be held on Tuesday February 6.

For more information about the Towns Deal click here: Redditch Town Deal