Agenda item

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).

Cabinet noted the comments made by Councillor Lorber who had requested to speak at the meeting in respect of the item.  In addressing Cabinet, Councillor Lorber referred to section 6.9 of the report and sought further details on the status of the additional scheme which it was reported had been added to the Capital Programme pipeline relating to the redevelopment of the Alperton Community Centre.  Having noted the figure included in relation to the scheme (£0.8m), details were sought on any discussions with other interested parties along with any internal project work undertaken and the estimates and assumptions on which the pipeline figure within the report had been based. In addition, concerns were highlighted (following on from the question raised at the Full Council meeting on 11 July 22) regarding the engagement of ward councillors and the local community in the process and development of proposals relating to the site.

In responding to the comments raised, Minesh Patel (Director of Finance) advised that the addition of the Alperton Community Centre to the Capital Pipeline was only as a placeholder.  No business case had been prepared, with the figure provided based on an initial assumption of indicative values.  Councillor Muhammed Butt (as Leader of the Council) confirmed he would be willing to arrange for local ward councillors to be updated, should this be requested, with the Council keen to consider options for the site based on available resources.

Having considered the comments made 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 2023/24, including the approach to consultation and scrutiny, as set out in section five of the report.

(3)    To note and agree the proposed 2021/22 capital budget carry forwards and capital virements as set out in section six of the report.

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

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

Prior to consideration of the main report, Councillor Muhammed Butt (Leader of the Council) invited Councillor Lorber, who had requested to speak on the item, to address the meeting.  Referring to section 6.9 of the report, Councillor Lorber sought further details on the status of the additional scheme which it was reported had been added to the Capital Programme pipeline relating to the redevelopment of the Alperton Community Centre.  Having noted the figure included in relation to the scheme (£0.8m), details were sought on any discussions with other interested parties along with any internal project work undertaken and the estimates and assumptions on which the pipeline figure within the report had been based. In addition, concerns were highlighted (following a question raised at the Full Council meeting on 11 July 22) regarding the engagement of ward councillors and the local community in the process and development of proposals relating to the site.

In responding to the comments raised, Minesh Patel (Director of Finance) advised that the addition of the Alperton Community Centre to the Capital Pipeline was as a placeholder.  No business case had been prepared, with the figure provided based on an initial assumption of indicative values.  Councillor Muhammed Butt (as Leader of the Council) confirmed he would be willing to arrange for local ward councillors to be updated, should this be requested, with the Council keen to consider options for the site based on available resources.

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance, Resources and Reform) then formally introduced the 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 2023/24.

Cabinet noted that the risks and uncertainties identified had included not only those which had existed prior to the pandemic but also new and emerging risks.  Issues identified included the longer term impact of the pandemic and high levels of inflation along with the increased demand on key services and 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 recovery programme from Covid-19 the cost of living crisis and other future steps to ensure the Council continued to operate in a financially sustainable and resilient way.

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 savings of £11.2m having been delivered between 2021/22 – 2022/23 it was recognised that further savings would be required during 2023/24 – 2025/26.  Whilst the 2022/23 budget had assumed savings of around £12m the current working assumption, taking account of the economic and financial environment, was that savings closer to £28m would need to be achieved in order to balance the budget between 2023/24 – 2024/25.  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 it was anticipated the Council would need to look to identify and deliver savings of approx. £20m in 2023/24 in order to be able to set a balanced budget, with the gap for 2024/25 to be reviewed once the local government financial settlement for 2023/24 was announced.  These estimates would be subject to review and further refinement in preparing the 2023/24 budget, however members were clear regarding the difficult nature of decisions that would be required in order to continue to deliver services alongside an affordable and sustainable budget.

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 and in the ongoing recovery from the scarring created by the pandemic.

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 2023/24, including the approach to consultation and scrutiny, as set out in section five of the report.

(3)     To note and agree the proposed 2021/22 capital budget carry forwards and capital virements as set out in section six of the report.

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

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