Decision details

RESOLVED:

That Cabinet:

1.            noted the revised MTFP forecasts, as outlined within the report and appendices;

2.            endorsed development of the options identified to close the budget gap for 2025/26 and through to 2028/29;

3.            endorsed the approach taken to set the Asset Maintenance and Capital Programme Budgets for 2025/26;

4.            approved the continuation for 3 years of the annual £195,306 financial support provided to Citizens Advice New Forest (CANF), commencing 1 April 2025; and

5.            approved the latest forecast position with regards to the Waste transition and roll-out costs, noting that an increase in transition costs is offset through a forecast reduction in 2025/26 roll-out costs.

KEY DECISION:

Yes

PORTFOLIO:

Finance and Corporate

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None

DISCUSSION:

The Portfolio Holder for Finance and Corporate introduced the report acknowledging that the Medium Term Finance Plan ran through to 2028/29.  He highlighted the funding gap at the end of the period as £2.693 m and that this needed to be addressed.

The Portfolio Holder reported that paragraph 4 of the report set out the economic commentary around the Autumn Statement.  It was necessary to address the budget deficit by minimising expenditure, making efficiencies and maximising income which was not always popular.  It was important to produce a balanced budget and to deliver the services which were important to local residents.

There were significant challenges and costs associated with the delivery of the Waste Strategy, with legislative changes and the desire to improve recycling and reduce residual waste. It was also highlighted that the transformation programme needed further consideration in terms of expenditure and savings leading up to budget setting next year.

A recommendation in the report sought to continue support to Citizens Advice New Forest with a proposed three year settlement which would support those residents in need in the community.

The Portfolio Holder reported there was a significant capital programme detailed in the report, which would have an impact on the level of reserves going forwards.

Finally, attention was drawn to the Housing Revenue Account (HRA), in particular the £9.96 million held in reserves for housing acquisitions and development to support the delivery of more council owned housing in the District. 

The Assistant Director - Finance confirmed the report provided an update of the latest position of the Medium Term Financial Plan.  He highlighted paragraph 4 within the economic commentary with a summary of the key elements of the Chancellor’s Autumn Statement, including local government spending power to increase and an increase in Local Government Grants.

Paragraphs 15-25 of the report provided details on changes to the financial plan since the previous update.  It was noted that the updated forecast deficit for 2025/26 was £466,000, rising to £2,693,000 for 2028/29.   Significant changes to this included the impact on the decision to increase fees and charges in Keyhaven and car parking, the crystallisation of vacant posts as well as reinstatement of the support for homelessness, due to ongoing demand in the year as well as changes to the waste and transformation programme.  It was highlighted that a recommendation was to support Citizens Advice for three years with an annual cost of £195,306 and this had been supported by the Resources and Transformation Overview and Scrutiny Panel.

Work would continue in order to address the budget shortfall.