Factors relevant to budget setting for 25/26
Review of Current Year to Date Spend against budget at 31/12/2024:
The proposed 25/26 budget spending figures are based on an estimated inflationary cost increase of 4.5% from previous year figures for areas of spending expected to be subject to inflation. Known costs have been used instead of a 4.5% increase where these figures are known for the year ahead, for example, where the council has received notification of future prices.
The budget income figures are based on reviewing current year income and future estimates for village hall hire and bank interest.
Staff costs have been calculated based on latest HMRC figures for tax along with the new 25/26 national insurance rates. A contingency has been included to allow for a NJC union negotiated pay rise, based on similar levels to the pay rise agreed between unions and local government in 24/25.
Contingencies have been reviewed in the ear marked reserves. These are outlined in the rationale.
The end of year estimated general reserve has been estimated on the assumption that expected expenditure at the end of the year will be roughly equal to the 24/25 budget set for the year.
January 2025 Council Resolution:
Minute ref: 2501_[12] BUDGET AND PRECEPT
- RESOLVED: Budget for 2025/26, expenditure was set at £51,757
- RESOLVED: Precept for 2025/26 was set at £44,000
Resolved Budget – Income and expenditure
| TCC PC 25/26 Budget 1/4/2025 | Budget 2025-26 | |
| PC INCOME | Budget 2025-26 | |
| Precept | 44000 | |
| Parish Footpath Agency Scheme | 908 | |
| Bank interest | 1700 | |
| Miscellaneous | ||
| PC INCOME SUBTOTAL EXC PRECEPT | 2,608 | |
| PC INCOME SUBTOTAL with precept | 46608 | |
| VH INCOME | ||
| VILLAGE HALL INCOME | ||
| Village Hall Income | 1825 | |
| Village Hall Income – Regular | 1944 | |
| Village Hall Income – CM | 1253 | |
| Village Hall Income Extraordinary | 300 | |
| VH INCOME SUBTOTAL | 5322 | |
| PC & VH INCOME TOTAL EXC. PRECEPT | 7930 | |
| VAT reclaimed | ||
| 0 | ||
| TOTAL INCOME: PC,VH,VAT, PRECEPT | 51930 | |
| PC PAYMENTS | ||
| GENERAL ADMIN | ||
| Payroll | 75 | |
| office supplies / petty cash | 450 | |
| Legal & professional fees | 61 | |
| Mobile phone | 63 | |
| Training & Foundation Award | 350 | |
| Insurance premium | 2020 | |
| Mower Insurance | 153 | |
| Audit | 853 | |
| Subscriptions | 580 | |
| IT purchase | 300 | |
| Website & email | 87 | |
| Health & Safety | 71 | |
| Bank Fees | 186 | |
| subtotal Admin | 5,249 | |
| PC EXPENDITURE | ||
| STAFF COSTS | ||
| subtotal staff | 33,797 | |
| COMMUNITY | ||
| Parish Council Grants Awarded | 2186 | |
| Christmas tree, lights, events | 195 | |
| Defibrillator | 282 | |
| subtotal Community | 2,663 | |
| PARKS AND OPEN SPACES | ||
| Upkeep open spaces tree surgery | 836 | |
| Playing Field running costs | 1978 | |
| Play Area Inspection | 149 | |
| Workwear/PPE | 259 | |
| Village operative equipment | 259 | |
| Rent for garage & ass. costs | 0 | |
| Fuel & Petrol | 355 | |
| Mower repairs & petrol | 868 | |
| Subtotal Parks/Open Spcs | 4,704 | |
| PC PAYMENTS SUBTOTAL | 46413 | |
| VILLAGE HALL EXPENDITURE | ||
| Cleaning | 1500 | |
| Electricity | 2005 | |
| Water | 329 | |
| Servicing/Repairs | 363 | |
| Electrical testing/H&S works | 564 | |
| Hallmaster | 259 | |
| Sundries | 324 | |
| Marketing | 0 | |
| VH PAYMENTS SUBTOTAL | 5344 | |
| COMBINED TOTALS | ||
| PC AND VH PAYMENTS TOTAL | 51757 | |
Proposed Earmarked Reserves for 25/26
| EARMARKED RESERVES | Rationale | ||
| V Hall & PF development – pumptrack | Fundraising funds for use on pump track | 2,477.00 | |
| PT 2.5% snagging fee June 2024 | Outstanding amount due June 2024 | 0.00 | |
| subtotal pump track | 2477 | ||
| V Hall & Playing Field development | Improvement of facilties | 5700 | |
| Memorial Garden | Funds donated and raised for a specific purpose | 6500 | |
| Benches Grant | Funds donated and raised for a specific purpose | 500 | |
| Small Business Grant V Hall recovery | To support recovery of income after covid | 2000 | |
| VH Marketing | To support increase of village hall income | 500 | |
| Building Maintenance | Future maintenance contingencies – roof, decorating | 23400 | |
| Equipment renewal | Renewal of equipment: Village operative / IT | 5800 | |
| Village Hall Key Deposits | Deposits held for refund to customer | 850 | |
| Election contingency | Election costs if required | 1104 | |
| Staff contingency | Unplanned extra costs: overtime, NJC pay rise | 1200 | |
| EARMARKED RESERVES TOTALS | 50031 |
Precept Calculation
Total Budgeted Income: £7,930
Total Budgeted Expenditure: £51,757
Precept required based on Expenditure – Income = £43,993
Estimated general reserve at based on 24/25 expected remaining income and expenditure 31/3/2025: £25,713 (This equates to 5.9 months of 25/26 expenditure in the general reserve)
JPAG recommends 3 to 12 months expenditure in general reserve, with smaller parish councils tending towards a higher general reserve. This parish council considers 6 months expenditure as a suitable general reserve based on this council’s size, situation and risks.
https://www.templecloud.org.uk/documents/reserves-policy/
https://www.templecloud.org.uk/documents/budget-setting/
Precept decided by Parish Council based on income, expenditure, earmarked and general reserves: £44,000
This equates to a 2.8% precept increase on previous year, and an expected total of 155p per week per band D property
- Posted: 31st January 2025