Decision details

RESOLVED:

That the Cabinet recommend to Council:-

(a)   That the revised MTFP forecasts, as outlined within the report and appendices be adopted;

(b)   That the options identified to close the budget gap for 2023/24 and through to 2026/27 are developed further;

(c)   That the Fees and Charges Policy set out in section 4e of the report be adopted; and

(d)   That the reporting timeline as set out in section 6 be agreed.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Report to Cabinet and Full Council.

PORTFOLIO:

Finance, Investment and Corporate Services / Housing and Homelessness Services / All.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST(S):

None.

DISCUSSION:

The Portfolio Holder introduced the report and highlighted the challenges in the current climate, with rising inflation and increased costs creating a deficit.  The challenge to the Council moving forward would be to meet this gap in-year and over the medium term.

The Chief Finance Officer highlighted in particular the effect of the pay award on rising costs to the Council.  In addition to the Council’s excellent track record in managing its finances, the Transformation Programme over the medium to long term would provide the Council with new opportunities to modernise and protect service delivery, whilst delivering savings.  This would be the subject of a future report to Cabinet.

One Member highlighted the Business Rate Reset and the uncertainty of its timing.  He suggested if this did not come forward, the funds could be diverted to assist residents during the cost of living crisis. The Leader highlighted the importance of maintaining appropriate levels of reserves, particularly with the example of the pay award offer which came at a significant cost to the Council.  Without this planning, many councils would not be in a position to respond to these examples of unexpected cost rises.  However, a comprehensive approach to supporting residents would always be pursued, noting that maintaining the delivery of services by managing the Council’s finances effectively was one of the best ways of supporting residents.

The Chief Finance Officer provided a brief update on the Business Rates Reset, which was pushed back to 2025/26 in the Council’s financial planning.  It was reported that this still appeared to be a reasonable assumption and therefore it continued to be right for the Council to plan for it and to address the consequential funding gap.