Issue - meetings

This report sets out the overall financial position facing the Council and highlights the significant risks, issues and uncertainties with regards to the Council’s Medium Term Financial Strategy (MTFS). It also sets out the proposed budget setting strategy for 2024/25 and outlines how the MTFS will aim to provide a framework to invest in broader ambitions and long-term priorities such as the Borough Plan, the cost-of-living crisis and other future steps to ensure the Council continues to operate in a financially sustainable and resilient way as well as supporting residents in need.

Cabinet RESOLVED

(1)      To note the contents of the report and the potential financial impact on the Council’s Medium Term Financial Strategy.

(2)      To agree the budget setting process for 2024/25, including the approach to consultation and scrutiny, as set out in section eight of the report.

(3)      To note and agree the proposed 2022/23 capital budget carry forwards and capital virements for 2023/24 as set out in section nine of the report.

(4)      To note the financial position with regards to the Housing Revenue Account, as set out in section ten of the report.

(5)      To note the financial position with regards to Schools and the Dedicated Schools Grant, as set out in section eleven of the report.

As a result of Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance, Resources & Reform) having submitted her apologies for absence Councillor Muhammed Butt (Leader of the Council) introduced a report which set out the overall financial position facing the Council along with the significant risks, issues and uncertainties identified in relation to the Council’s Medium Term Financial Strategy (MTFS).  The report also set out the proposed budget setting and consultation strategy for 2024 - 25.

Cabinet noted that the risks and uncertainties identified were focussed around the high level of inflation, rising interest rates and increased demand and demographic led pressures on key services along with ongoing uncertainty over government funding.  Despite the difficulties and financial challenges identified, Cabinet also noted how the MTFS aimed to provide a framework for delivery of the Council’s broader ambitions and longer term priorities.  These included those identified within the Borough Plan, the cost-of-living crisis and other future steps to ensure the Council continued to operate in a financially sustainable and resilient way whilst supporting those most in need.

In recognising the significance of the ongoing financial challenges identified, members felt it important to also reflect on the measures taken to have delivered total cumulative savings of £196m since 2010.  Despite the delivery of these and additional programme of savings agreed for 2023-24 and 2024-25 it was recognised that further savings would be required during 2024-25 – 2025/26.  In noting the difficulty in being able to identify precise targets, given the lack of clarity around the future level of local government funding and uncertainty over the current economic environment and inflationary pressures, members were advised that these additional requirements would need to be factored into development of the 2024-25 budget proposals.

In expressing concern at the risks and significant challenges identified alongside the approach of central government in relation to the funding of local public services, members were keen to highlight their commitment to continue supporting those most in need particularly in relation to the cost-of-living crisis as evidenced through the ongoing provision being made available for the Resident Support Fund.

Having considered the comments made and noted the need to ensure resources continued to be utilised as effectively as possible Cabinet RESOLVED:

(1)    To note the contents of the report and the potential financial impact on the Council’s Medium Term Financial Strategy.

(2)    To agree the budget setting process for 2024/25, including the approach to consultation and scrutiny, as set out in section eight of the report.

(3)    To note and agree the proposed 2022/23 capital budget carry forwards and capital virements for 2023/24 as set out in section nine of the report.

(4)    To note the financial position with regards to the Housing Revenue Account, as set out in section ten of the report.

(5)    To note the financial position with regards to Schools and the Dedicated Schools Grant, as set out in section eleven of the report.