Meeting Details

The Chair 

 The Leader paid tribute to Kay Yule, who retired as a Councillor and passed away in December 2024. 

With effect from 13th December 2024:

Councillor Mark Packard would be the Chair of the Local Plan Working Group and also took the lead role for Coastal Partnership East, and a place on the Ipswich Strategic Planning Area Board

 Councillor Bennett would now be on the CIL working group. 

 The Deputy Leader took places on the Southwold to Walberswick Project Board and the Benacre and Kessingland Flood Project.

 Councillor Molyneux had taken the place on the Kyson (River Deben) Fairways Committee.  

On the proposition of Councillor Candy seconded by Councillor Wilson it was 
 
RESOLVED

 
That the Minutes of the meeting held on 3 December 2024 be agreed as a correct record and signed by the Chair.

Councillor Langdon-Morris Cabinet Member with responsibility for Resources and Value for Money introduced report ES-2213 which related to the Fees and Charges for 2025 / 2026.

Income from fees and charges was an integral part of the financial planning process, to inform the Medium-Term Financial Strategy (MTFS) and acts as a key element of the annual budget setting process, forecasting the generation of essential funding for the Council to help minimise the impacts of Council Tax increases and/or service changes.

In light of growing financial pressures for the authority and the current cost of living crisis impacting the local residents, the Council aims to ensure that the review of the fees and charges factors key assumptions, such as, local demand, reflecting changes in the cost of delivering the services and includes any required service improvements to ensure the Council continues to reflect value for money.

The overall annual income to the General Fund generated from Fees and Charges is in the region of £30 million per annum, including the Port Health.

Appendix A of the report sets out the proposed Discretionary and Statutory Fees and Charges for 2025/26.  Discretionary fee areas to highlight are set out in Paragraph 3.6 to 3.42 of the covering report.   This included further details for areas such as Environmental Health, Parking Services, Waste Collection, Recreation and Outdoor Sports, Beach Huts and Chalets, Cemeteries, Planning related applications and Housing Services.

The Statutory Charges were for noting and were also set out in Appendix A.  They were set by Government statute and councils usually have no control over service pricing. For some statutory fees there are no set review dates and some areas such as licences, have not been increased for a number of years. Where review dates were known these were provided in the relevant sections of the schedule.

Appendix B set out the proposed changes to Car Parking fees in 2025/26. The areas to highlight are detailed in Paragraph 3.17 to 3.19 of the covering report.

The date for implementation for all charges detailed at East Suffolk Council was 1 April, unless otherwise stated and following approval would be published onto the Council’s website.

Councillor Candy was disappointed that some of the fees and charges in the Felixstowe area had not been reduced and that Woodbridge remained cheaper to park.

 Councillor Wilson responded that the charges across the district were levelled and did not believe that Woodbridge was significantly cheaper. There were several areas in Felixstowe that had been kept the same and would not be affected by seasonal uplifts. Felixstowe had more beach-adjacent car parks with access to the amusements, amenities and services in the seafront area.

 Councillor Ashton raised the matter of eternal right of burial and the intention to make an amendment. He recommended increasing the term from 25 years to 50.

 There will be an additional recommendation added to reflect the adjustment which would have a cash neutral impact on the budget.

 Councillor Ashton proposed the amendment which was seconded by the Chair.

 The additional recommendation would read:

 That Cabinet: Approved to increase the term of eternal right of burial from 25 to 50 years.

 For those who held a 25-year term they would be offered the opportunity to purchase the additional 25 years.

 Councillor Jepson raised concerns regarding the risk assessment under 6.1 of the report, which was a generic worded assessment. The Councillor questioned if the prices in the coastal towns had increased to deter people from driving to those areas.

 The Chair added that there had been increases and decreases over the last administration, and so there had been some previous work to realign parking charges across the district when East Suffolk Council was formed.

 Councillor Wilson responded that the increases were not to deter people from driving or parking in the affected areas. The parking review was in support of residents, tourists and local business. The work that had taken place underpinning the data was complex.

 The Strategic Director responded to the point on comparator locations and highlighted the analysis conducted, including a bench marking exercise looking at the cost of parking in comparable areas. The work showed parking in East Suffolk was on average around 40% cheaper. The proposed increases would return a benchmark figure of around 10-20% lower than comparable areas.

 The second exercise conducted focused on demand and outlined the demand management in car parks, especially in the summer. When looking at occupancy of destination car parks there was over demand and under supply during the peak season.

 Councillor Wilson concluded that investment was needed across car parks in the district. The administration was not asking to recoup money lost from inflation rises or the cost implications of the 30 minutes free parking across the district.

 There was an investment plan which included EV chargers, new contactless payment terminals, new cycle racks and signage. The increased revenue would be spent in the vicinity of car parks and there would be an improved maintenance programme in place to support car parks in East Suffolk.  

 Councillor Deacon raised concerns regarding the increased car parking fees and described the ongoing challenges of people trying to find off-street parking in Felixstowe and ‘road sweeping’, especially during the summer. The Councillor believed the increased fees would not encourage people to use car parks and would have a detrimental impact on the resort town.

 Councillor Wilson responded that there was no evidence from the data or research that an increase in parking charges or seasonal surcharges dampened demand for tourism. The Councillor outlined that encouraging the ‘churn’ in car parks over the course of the day would encourage business and hoped that it would encourage more use of car parks. Councillor Wilson concluded that he did not think the problem of ‘road sweeping’ in Felixstowe and other areas would be fixed regardless of the price of parking.

 Councillor Byatt outlined the issue of car parking being seen as a cash cow and raised concerns over the seasonal increases and queried if local residents and businesses in seaside towns were consulted.

 Councillor Wilson responded that the money generated must be spent in the vicinity and around the car park infrastructure and that should be made clear to residents and visitors. The Councillor believed an appropriate level of remuneration was being applied to immediate localities and it was a fair increase.

 Councillor Jepson clarified if the query over the risk assessment not taking account of the increased charges and the potential impacts the increases could have in the local communities.

 The Strategic Director responded that there was a risk assessment based on the fees and charges. There was a weighting given to the potential for drop off and displacement which was part of the analysis. The Strategic Director was happy to share some of the wider data underneath the risk assessment.

 Councillor Folley echoed the concerns raised that tourism in Felixstowe would be detrimentally impacted by the increased charges.

 On the proposition of Councillor Langdon-Morris, seconded by Councillor Wilson it was by majority vote

 RESOLVED

That Cabinet:

1. Approved the discretionary Fees and Charges for 2025/26, included within Appendix A to this report.

2. Noted the statutory Fees and Charges for 2025/26, included within Appendix A to this report.

3. Approved the Car Parking fees for 2025/26 included within Appendix B.

4. Granted the Head of Environmental Services and Port Health delegated authority, in consultation with the Cabinet Member with responsibility for Community Health, to determine the Port Health discretionary charges for 2025/26, once regulatory information is made available.

5. Approved to increase the term of eternal right of burial from 25 to 50 years.

Councillor Ashton, Deputy Leader and Cabinet Member with responsibility for Corporate Services – Digital, Customer Services, HR and Assets introduction report ES-2214 which related to the Proposed Fees and Charges for Southwold Harbour and Caravan & Campsite for 2025/26.

The report had been agreed by the Harbour Management Committee in November, which included stakeholders for harbour users and campsite. The Deputy Leader stated there was a general increase of 5% and some smaller items had increased by slightly more than 5%. The increases were driven entirely by an increase in costs.

There is ongoing work with the harbour area and campsite and there would be future cost required to maintain the harbour. During the coming financial year proposals for investments and significant developments in the operating model for the campsite and harbour would be coming forward.

It was noted there was a typographical error on recommendation 3, which should have read:  3. approves that delegated authority be given to the Head of Property and Place, in consultation with the Cabinet Member for Corporate Services, to increase the fees for 2025-26 season

Councillor Beavan added support for the work required in the harbour area and the requirement to charge rates which would ensure continued income.

On the proposition of Councillor Ashton seconded by Councillor Beavan it was unanimously

RESOLVED

 That Cabinet:

 1. reviewed and approved the proposed fee increase of up to five percent (5%) for the specified visitor services and holidaymaker fees as outlined within Appendix A.

 2. reviewed and approved small item charges which fall under the £50 level and which are proposed to increase above 5% as outlined within Appendix A;

 3. approved that delegated authority be given to the Head of Property and Place, in consultation with the Cabinet Member for Corporate Services, to increase the fees for 2025-26 season.

Councillor Langdon-Morris Cabinet Member with responsibility for Resources and Value for Money introduced report ES-2215 which related to the Capital Programme 2024/25 to 2028/29.

As part of the annual budget setting process, the Council was required to agree a programme of capital expenditure for the coming four years and any revisions to the current financial year.

The timeline for the report was:

7th January Cabinet

16th January Overview & Scrutiny Committee

4th February – Cabinet to review any recommendations from the Scrutiny Committee

19th February Full Council for overall approval of the programme

The report set out the General Fund Capital Programme and the Housing Revenue Account Capital Programme separately in appendices along with a brief description of each project.

 The capital programme had been compiled taking account of the following main principles, to:

• maintain an affordable four-year rolling capital programme.
•  maximise available resources by actively seeking external funding and disposal of surplus assets.
• not to anticipate receipts from disposals until they are realised; and to focus on the deliverability of the current projects within the programme.

The updated capital programme was reviewed by the Strategic Property meeting in November 2024 and at the December meeting of the Central Leadership Team.

Financial Summary:

The general fund capital programme for 24/25 to 28/29 totals £169.69m financed from Grants and Contributions of £51.26m (30%), £4.86m (3%) Reserves and £113.57m (67%) of borrowing.

The HRA capital programme for 24/25 to 28/29 totals £89.95m financed from £12.95m (14%) of grants and Contributions and the use of £49.86m (55%) of capital reserves & direct revenue financing, £19.39m (22%) of capital receipts and £7.75m (9%) of borrowing £73.20m (89%) of internal resources (reserves, capital receipt and direct revenue contributions).

The Chair congratulated the finance team for getting the papers together in the timeframe they had to work with. 

Councillor Noble stepped out of the room during the item being introduced and did not vote.

On the proposition of Councillor Langdon Morris seconded by Councillor Daly it was unanimously

RESOLVED

That Cabinet approved:

1. The General Fund capital programme for 2024/25 to 2028/29 including revisions as shown in Appendix B to be reviewed and considered by the Overview & Scrutiny Committee as part of the budget process.

 2. The Housing Revenue Account capital programme for 2024/25 to 2028/29 including revisions as shown in Appendix G to be reviewed and considered by the Overview & Scrutiny Committee as part of the budget process.

Councillor Beavan the Cabinet Member with responsibility for Housing introduced report ES-2223 which related to Housing Revenue Account (HRA) Budget Report 2025/26 to 2028/29.

The report brought together the Housing Revenue Account Budget for the period 2025/26 to 2028/29, with a projected outturn for 2024/25 and a summary of its reserves and balances.

The HRA budgeted for Revenue and Capital to make use of all available financing resources, however additional borrowing of £7.7 million was required in 2025/26 to balance the budget. If any underspends or other financing opportunities arise, it would be reduced where possible.

The budget proposals gave a forecasted HRA working balance that remains at the 10% minimum acceptable level over the Medium-Term Financial Strategy. The balance was predicted to be £2.55 million as at 31/03/2029. Using all available resources and reserves to try to solve the housing crisis. 

Councillor Byatt queried if a response had been formulated to the new government’s comments on right to buy.

Councillor Beavan responded that there had been a consultation and there was agreement that the council wanted to restrict right to buy as much as possible.

On the proposition of Councillor Beavan seconded by Councillor Langdon-Morris it was unanimously

RESOLVED

That Cabinet approved the following for review and consideration by the Overview and Scrutiny Committee as part of the budget process:

1. The draft HRA budget for 2025/26, and the indicative figures for 2026/27 to 2028/29;

 2. Movements in HRA Reserves and Balances;

 That Cabinet noted the following:

 1. Projected outturn position for 2024/25;

 2. Changes affecting public and private sector housing and welfare;

 3. Effects of the cost-of-living crisis to the HRA

Councillor Beavan Cabinet Member with responsibility for Housing introduced report ES-2217 which related to the Housing Revenue Account (HRA) Rent and Service Charge setting 2025/26.

The Government’s Rent Policy recognised that registered housing providers should have some flexibility over the rent set for individual properties, to take account of local factors. In making the proposed amendments, the Council could ensure that income from rent and other charges was set at an optimum level; meaning the Council was able to balance the HRA budget whilst mitigating, wherever possible, financial impacts on the Council's tenants.

The paper provided an explanation as to how it had been achieved within Government policies.

The report detailed the required changes to the Councils rent and service charge setting process in accordance with National Government policy and, provided analysis in terms of the impact this would have on the Housing Revenue Account (HRA). It further detailed how rents and service charges were determined, and the proposed increases for 2025/26 were recommended to Cabinet for approval.

The report also noted changes in welfare and benefits and the impact of external and internal requirements which have been considered when completing rents and service charges for 2025/26.

Councillor Beavan added that it was not financially possible to build or buy at current prices without being able to charge realistic rents. There was a desire to build net zero which required extra borrowing costs and therefore would require a higher rental charge. Rents were being raised in line with inflation.

Councillor Daly sought reassurance that the poorest families would be protected by any rent increases. 

The Housing Finance Business Partner confirmed that affordable rents were capped at the LHA rate on affordable rents. Most of the rents were on social rent which housing benefit should cover. 

On the proposition of Councillor Bevan seconded by Councillor Candy it was 

RESOLVED

 That Cabinet recommend to Full Council that it approves the following:

 1. Proposed rent increase of 2.7% In line with the Rent Standard September 2024 CPI of 1.7% + 1%.

 2. Service charges and associated fees for 2025/26 at Appendix A

 3. Rent and Service Charges to be charged over a 50-week period unless being used for Temporary Accommodation when a 52-week period will be applied.

Councillor Langdon-Morris Cabinet Member with responsibility for Resources and Value for Money introduced report ES-2217 which related to General Fund Budget 2025/26 and Medium-Term Financial Strategy (MTFS).

Since the last MTFS update to Cabinet on 5 November, work on budget setting continued and the Provisional Local Government Finance Settlement for 2025/26 was released on 19 December.  Whilst the average increase in Core Spending Power was an increase of 6% for the whole sector compared to the current year, the average increase for districts was only 0.32%.  In fact, 132 of the 164 district councils had received no increase, including East Suffolk.  Government Settlement grants for East Suffolk will decrease by nearly £0.800m in 2025/26, from £3.7m to £2.9m.  Compensation for the Employer National Insurance Contribution in April will be clarified in the final Settlement, expected early February.

The provisional settlement also indicated that funding reform and a reset of the business rates system will start in 2026/27, along with a multi-year settlement.  The Council’s MTFS assumed that most of the Government core funding would disappear, and business rates income will decrease, with transitional measures in place as the baseline is reset.  More details on this reform are expected in the new year.

The Council Tax referendum limit for 2025/26 remains unchanged at the higher of £5 or 2.99%.  The proposed budget for 2025/26 includes a Council Tax increase up to the referendum limit, which would result in a District Band D Council Tax for East Suffolk of £192.15 (£186.57 for 2024/25), reflecting an increase of £5.58 (2.99%).

A balanced budget was presented for 2025/26, achieved by using £6.6m from reserves to address the funding gap.  The projected budget gaps for 2026/27 and 2027/28 are largely unchanged from the February forecast position, with gaps of £6.7m and £8.5m respectively. The gap for 2028/29 had increased significantly to £11.5m (£8.3m in February).  Key budget pressures included establishment costs, inflation, service demand, revenue costs for capital projects, reduced central government funding, and the cost of services delivered by East Suffolk Services Ltd.

Earmarked reserves were forecast to decrease from £41.5m on 1 April 2024 to £20m by 1 April 2029, reflecting the use of reserves to alleviate some of the budget pressures. The Council also holds a general fund balance of £6m, with no planned use of this balance at this time.

The financial landscape of local government was becoming increasingly challenging. Given the uncertainty around funding reform, and the range and scale of expenditure and income pressures, a combination of actions would be required to achieve a sustainable medium-term position, including a phased use of reserves.  The Council must prepare for savings and income generation strategies as part of the 2026/27 budget setting process.  The assessment would be regularly reviewed as further information was provided by Government over the course of the year and the 2024/25 outturn position is finalised.

The Overview and Scrutiny Committee would consider the report on 16 January. 
Councillor Wilson congratulated the finance team on the report and for providing more accessible data. The Councillor queried what elements of the Capital Programme were being funded through the revenue funding route.

The Chief Finance Officer responded that the team could provide a breakdown which would show further detail.

Councillor Langdon-Morris added there were performance dashboards available on the website,

Councillor Jepson thanked the team for the report and referenced  5.4 of the report and commented on the business rates referenced there. The Councillor questioned what would e done to support new business and existing businesses to continue to operate.

The Head of Economic Development and Regeneration responded that businesses were supported in various ways, both directly and indirectly across all sectors. East Suffolk was part of the growth hub, which was a countywide programme. The Head of Economic Development and Regeneration was happy to provide any additional information. £900,000 of shared UK Prosperity Funding had recently been allocated to East Suffolk.

Councillor Langdon-Morris referred to figure 3.6 in the report, there was an extraordinary number of small to medium enterprises in the district. There was on-going work looking at local consumption and local production.

On the proposition of Councillor Langdon-Morris seconded by Councillor Wilson it was 

RESOLVED

That Cabinet:

1. Approved the draft Medium Term Financial Strategy attached at Appendix A, and supporting appendices, for review and consideration by the Overview & Scrutiny Committee as part of the budget process.

 2. Approved a proposed Band D Council Tax for East Suffolk Council of £192.15 for 2025/26, an increase of £5.58 (2.99%).

Councillor Beavan Cabinet Member with responsibility for Housing introduced report ES-2218 which related to the Housing Regulation - Quarterly Update to Cabinet which updated Members on housing regulation matters, which led in May 2022 to a Regulatory Notice being published by the Regulator of Social Housing (RSH) for a breach of the Home and Rent Standards.

The quarterly updates were required, which was set out in paper ES-1432, which was presented to Full Council on 25 January 2023. At the meeting recommendation six stated “Members note that quarterly updates will be presented to Cabinet, detailing the progress against the Compliance and Rent Improvement Plans”.

The report follows ES-2115 the previous quarterly update to Cabinet on 1st October 2024.  Section 2 of the report had been re-written to describe progress and status.

 The Chair thanked the Head of Housing and the housing team for their work.

On the proposition of Councillor Beavan seconded by Councillor Whitelock it was 

 RESOLVED

 That Cabinet:

 1. Noted the information contained within this report and endorses the actions set out to ensure the Council is compliant with the Regulator of Social Housing Consumer ‘Safety and Quality Standard’

 2. Noted the information contained within this report and endorses the actions set out to ensure the Council is compliant with the Regulator of Social Housing ‘Rent Standard’

 3. Noted that the next quarterly update will be presented to the April’s 2025’s Cabinet Meeting.