We've agreed our budget for 2025 to 2026
The budget sets out how we will deliver our services over the next three financial years. It closely aligns with the key priorities we implemented in our Corporate Strategy last year.
The good news is that council finances have been stabilised.
We started the budget process in good time, so were well placed to deal with the unfavourable local government finance settlement announced last December.
Leader of the Council, Cllr Julia McShane, said:
"We've come a long way in the last two years, thanks to the dedication of everyone involved in the annual budget process. I'm particularly grateful to the finance team for their ongoing meticulous and diligent work."
Cllr McShane added,
"Recognising the financial pressures many individuals and families in the borough are facing, I'm pleased that we've been able to continue funding for initiatives that help people who may be struggling. This includes the Local Council Tax Support Scheme and our £40,000 discretionary hardship fund.
"Focusing on our five key priorities, we will continue to work in the best interests of our residents."
Financial settlement
Guildford's funding from the government for 2025-26 will remain at the same level as 2024-25. This includes the increase in council tax.
- there is no extra government funding to pay for inflationary pressures and increased demand for services.
- there is not enough compensation to deal with the extra Employers' National Insurance contributions introduced in the Chancellor's budget.
These will need to be met by reducing costs and increasing income.
Savings
A detailed review of existing budgets has identified some areas of savings and efficiencies. This, together with a further review of fees and charges has meant that most cost pressures can be met while maintaining good quality public services.
Extra spending
Services were invited to submit growth bids where they are experiencing demand pressures or new expectations. These were prioritised into three categories and presented for review by The Executive:
- Invest to save where, with a little investment, schemes can pay for themselves and produce ongoing savings
- One off funds for things that the council needs to do, like developing the new Local Plan
- Growth bids for new expenditure that meet its corporate priorities, including redesign of the Careline alarm service and the provision of handsets in waste vehicles
The council has not been able to fund all the growth bids. However further reviews of service budgets are planned which could release funding in due course.
Income generation
Having looked at all its services to check if costs are being covered, fees and charges have gone up by at least 3.75%. These are:
- considered fair to users
- compare favourably with fees and charges at other councils, and
- cover costs and inflationary pressures
Reserves
In a big change to two years ago reserves are back at a reasonable level. At the end of 2024-25 non-ringfenced reserves are estimated to be around £17.7m. This is:
- well above the minimum 5% of general fund expenditure recommended and
- provides a healthy reserve if needed
Lead Councillor for Finance and Property, Cllr Richard Lucas said:
"I'm extremely pleased that Full Council approved this year's budget.
Having successfully balanced the budget for 2025 to 2026, we still have some tough decisions ahead to balance our Medium-Term Financial Plan. However, I have no doubt this will be achieved now we have an experienced financial team and strong controls in place."