Decision details

To consider an update to the Medium Term Financial Plan

RESOLVED:

That the Cabinet:

1.     Note the contents of the report and the updates to the Medium-Term Financial Plan.

2.     Endorse the approach taken to set the Asset Maintenance and Replacement Programme and Capital Programme Budgets for 2023/24.

3.     Allow the Fleet Manager to begin procurement for the vehicles and plant as included within the 2023/24 replacement programme.

4.     Recommend that Council approve the proposed fees and charges as included at Appendix 1 and 2 of the report.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Yes. Report to Cabinet and Council.

PORTFOLIO:

Finance, Investment and Corporate Services.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST(S):

None.

DISCUSSION:

The Portfolio Holder introduced the item and acknowledged that the entire country was facing rising prices throughout the ongoing cost of living crisis. Individuals, businesses and local authorities were all being impacted by the increase in costs. The Portfolio Holder was confident, however, that the Medium-Term Financial Plan (MTFP) would deliver its aims for the residents of the District.

The Section 151 Officer reported that the underlying message of the MTFP was that the Council continued to face a financial challenge when looking ahead. However, the Section 151 Officer assured Members that work continued to be undertaken in a proactive and prudent way, so as to put the Council in the best position to present a strong financial strategy through to 27/28.

Cabinet was informed that the Council’s financial strategy sought to align available financial resources and corporate priorities in order to achieve a balanced budget. A balanced budget would be realised through the crystallisation of efficiencies from all services, supported with the targeting of new and additional income generation. 

Financial stability over the medium-to-long term had underpinned the Council’s financial strategy, with due consideration being given to the potential implications that the Fair Funding Review, Business Rate Reset, and national rent setting policy would have on the Council. The Council had understood the need to consider its overall organisational business model in order to ensure the future protection of its services and aligns the financial plan to ensure its delivery of key priorities as outlined in the Corporate Plan.

The Autumn Spending Review awarded Local Government an additional £4.8billion in grant funding over the next three years as well as some business rate relief measures and settlement grants. The items that were known as either impacting or potentially impacting the Council’s finances over the Medium Term were: Government policy including the Business Rate Reset, the Lower Tier Services Grant, Services Grant, Council Tax Increase, New Homes Bonus, National Insurance Contributions, Extended Producer Responsibility Scheme, Homelessness Prevention Grant and the HRA Cap.

Council Tax would play an important role in the overall scale of the Council’s budget going forward. The increase in the Band D Council tax threshold of £5 or 2.99% for District Councils would provide added flexibility to achieve the figure within the updated forecasted deficit, as detailed in Point 5.2 of the report presented to Cabinet.

Options were identified to address the deficit, as outlined in the report, including Commercial and Residential Income Generation and the Efficiency Programme.

Cabinet considered the additional, significant quantifiable changes to consider since the September reported position. These included Homelessness Cost Pressures, Triennial Pension Revaluation, National Insurance, Pay Award, Tax Base Growth, investment in the New Forest economy, the freezing of the Business Rate multiplier, investment in Service Change Resources, and service changes in Garden Waste Collections and Trade Waste. 

Formal financial setting will take place in February, awarding greater clarity to the 2023/24 budget.

Members discussed the increase, between 9.1% to 11%, in Garden Waste collection fees. The Portfolio Holder explained that despite this increase in collection costs, the District retained one of the lower charges for this service in comparison to other local authorities within the County.