2025-26 Budget and Precept Report

The following report and recommendations were presented to the Parish Council in December 2024 to support the setting of the budget and precept

Form and detail of the budget:

The quarterly year to date spend against budget reports contains the budget categories used for quarterly reporting. It is recommended that these budget categories continue to form the basis of the detail of the budget.

Income

An assessment of predicted income levels for the future year has been reviewed by the RFO and parish council and are based on:

• current income received for the year against the budget
• expected remaining income for the year
• a consideration of expected reserves and bank interest rates for the future year
• a consideration of future activities and income sources
• any adjustments to expected future income

Determination of cost of spending plans

Spending Plan

The budget has been based on expected income and future spending plans presented by the responsible financial officer (RFO) to the Parish Council. The following was considered by the RFO and the Parish Council in the proposal:

• a review of the current budget
• a review of proposed future activities and projects proposed by members of the council
• a review of year to date spend (see most recent quarterly year to date spend vs budget report)
• an estimated inflationary adjustment for each budget section, with possible outcomes depending on expected inflation level
• actual figures based on quotations received for future services (eg subscriptions)

Staff Costs

Staff costs for the future year have been calculated by the RFO and reviewed by the finance working party for approval of the full council. These costs have been based on:

• contracts of employment
• salary scales
• pension contributions
• PAYE tax and NI rates
• an inflationary adjustment to cover a possible pay award (yet to be agreed and set by the NJC).

Contingencies and Earmarked Reserves

The current earmarked reserves, future commitments, contingencies and future projects have been reviewed against the budget and used as a basis of the proposed budget which has been approved by the Parish Council.

The predicted year end balance is based on a review of the current year to date spend and income along with the expected year end spend and income and has been calculated as: £26,995

Recommended Earmarked reserves: £19,289

Estimated general reserve at start of 25/26: £26,995 – £19,289 = £7706

This council considers 6 months expenditure as a reasonable general reserve given the size of the budget and the considered risks. On a planned expenditure of £14,530, the expected general reserve of £7,706 is the equivalent of 6.3 months of expenditure, which is £441 above the level of 6 months of expenditure. This is considered an reasonable level without any further amount needing to be added or deducted to the precept requirement to cover contingencies.

Precept Requirement

Expected spending is £14,530

Expected amount to be added or deducted for contingencies is between £0 and £441

Expected income is £337

Precept requirement is based on Expected Spending – Expected Income as follows:

£14530 – £337 = £14193

or if also choosing to deduct the expected surplus general reserve above 6 months expenditure:

£14530 – £337 – £441= £13752

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BUDGET AND PRECEPT APPROVED BY COUNCIL, Minute Reference 2412_13

1. RESOLVED: Budget for 2025/26, set at expenditure of £14530
2. RESOLVED: Precept for 2025/26, set at £13752

Budget Breakdown approved for 25/26

Band D Equivalent Estimations

Estimations are based on expected tax base. For the latest accurate tax base, please contact Bath and NE Somerset Council.

Estimated BAND D equivalent equivalent for 2025/26 based on £13752 precept and expected 239.69 tax base: £57.37

Estimated BAND D equivalent equivalent for 2024/25 based on £12750 precept and expected 234.33 tax base: £54.41

Estimated increase for BAND D equivalent from 24/25 to 25/26: 5.2%

Contingencies – Playground Upgrade:

Kompan order placed for £16090.17 exVAT, to be met from earmarked reserves (Playground Upgrade from CIL, Playground Upgrade Grant and Playground match funding)