2025-2026 Budget Report

BUDGET PAPER 2025/26

Agenda Item 52 and 53 Full Council 13/11/2024 – To agree the budget for 2025/26, and to set and inform Welwyn Hatfield Borough Council of the Council’s precept demand for 2025/26.

1. Budget for Northaw & Cuffley Parish Council (NCPC) for 2025/26

Attached is the proposed budget, The budget required for Northaw & Cuffley Parish Council for 2025/26 to fulfil its obligations is £401,785, an increase of £18,065 over the 2024/25 budget of £383,720.

The main reasons for this increase are:
• Inflationary pressures on goods and services needed by the Council.
• Cost of living increases for staff, reflecting nationally negotiated rates beyond NCPC’s control.

2. Considerations

• Car parks
Prices were last reviewed in 2023
RFO recommendation a further review of car parking charges in 2025 and bi-annually thereafter.
• Rent on Buildings
Cuffley Hall – rent fixed at £5 peppercorn
Community Centre – rent fixed at £5 peppercorn
KGV Pavilion – rent currently £4,631.93 new lease so 1st payment at this rate
KGV Garages – rent currently £1,066.10 and an RPI increase was made in 2023 of £109.10
Tennis Club – rent currently £1151.85 and an RPI increase was made in 2023 of £48.85 pa
Bowls Club –rent currently £293.66 and an RPI increase was made in 2023 of £5.66 pa
Peters Wood – rent currently £1400 no increase has been made
RFO Recommendation is to freeze rents at stated levels and review again in 2025
• Funding of PCSO
Separate community consultation report circulated attached as an appendix to this report

3. RFO (Responsible Financial Officer) recommendation

The RFO recommends that the Council confirms a budget requirement for Northaw & Cuffley Parish Council of £401,785 net for the financial year 2025/26.

4. Precept Requirement for 2024/25

Upon finalising the budget, NCPC must determine the funding source. This may be fully or partly from council tax collected by Welwyn Hatfield Borough Council or from reserves (excluding capital reserves, which are designated for capital expenditures). As of November 2024 (Month 6), NCPC held a balance of £583,197 there is a further 6 months of the budgeting year remaining and a further £137,106 2nd half of the 2024/25 Precept due in Month 7 still to be included.

Welwyn Hatfield Borough Council will provide the tax base in December 2024 all figures use the previous tax base figure from 2024/25 which was 3129 households, this represents the number of properties contributing to the NCPC precept.

5. Precept Demand

NCPC has historically used its reserves to keep the Precept as low as possible with the use of reserves in 2023/24 at £54,775 and in 2024/25 use of reserves was £102,757. The RFO has continued in this way when calculating the recommended increase and would suggest an increase as detailed.
Based on a budget of £401,785 (A) and a tax base of 3129 households (C), the projected charge per Band D property should be £89.94 (D). This represents an increase from the previous year’s Band D charge of £87.62 (E), amounting to an additional £2.32 per household annually (F) or a 2.65% increase (G). This increase accounts for inflationary adjustments and a modest use of Parish Council reserves.

6. Precept Calculation

Income Source Amount (£)
Admin 8,700
Asset Income 17,300
Car Parks 124,000
Total Income 150,000
Expenditure Category Amount (£)
Operating Costs 43,215
Staff 150,000
Open Spaces 110,370
Community 64,750
Car Park 33,450
Total Expenditure 401,785
Net Precept Requirement | £281,422 (B)
Use of Reserves 2025/26 | £120,000

7. Calculation Summary

• Net Budget Required (A): £401,785
• Previous Year Budget: £383,720 (Increase of £18,065, 4.70%)
• Tax Base (Band D): 3129
• Precept per Band D (D): £89.94
• Previous Year Band D (E): £87.62
• Increase per Band D (F): £2.32
• Percentage Increase (G): 2.65%

Council are recommended to resolve that the Parish Clerk informs Welwyn Hatfield Borough Council (the Council tax collector) that the NCPC precept demand for 2025/26 will be £281,422.

8. Reserves Recommendation

Council are recommended to consider general reserves at 3-6 months of operational costs which are expected to be between £75,000and £150,000 the remaining reserves to be allocated as recommended and agreed by Council.
Members of Council are requested to review this report in conjunction with the prepared excel spreadsheet showing budget and reserves calculations.

Lisa Peters LGCI PSLCC CPFA CiLCA
Responsible Financial Officer (RFO)
For and on behalf of Northaw & Cuffley Parish Council
6th November 2024

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