Decision details

The Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer presenting the Medium Term Financial Plan (MTFP).

The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:

• The Medium Term Financial Plan (MTFP) for the General Fund covering the years 2025/26 to 2028/29.
• The MTFP would normally cover a 5 year horizon, the change in Government and the importance of the Autumn Budget for the future of public services, adding a new year 5had been delayed until the Council was better informed.
• The report only covered the General Fund, whereas normally the report would also include the Housing Revenue Account and the Capital Programme. These would be developed and would come through the governance process in due course.
• The latest forecast position was based upon the most up to date information.  It was important to agree the underlying principles set out in Section 2.6 of the report.
• The underlying assumptions were included within Appendix 1, along with some sensitivity analysis that gave some scale to the variability of the MTFP and would be refined as the Council progressed through the budget process.
• The headline position for the General Fund was that there was a projected shortfall in 2025/26 of £1.2 million, increasing to £4 million by 2028/29.
• Senior officers have identified a range of budget options to address the budget shortfall using the red, amber and green assessment, which would be presented to the relevant Policy Development Groups for discussion, with the recommendation to support the green and amber options.
• Newly identified budget pressures in Appendix 3 and savings options in Appendix 4A which were relevant to Cabinet only, or Appendix 4B for all saving options.

Discussion took place regarding:

• The figures and comparator data on staff turnover and sickness.
• The annual shortfall decreases in 2027 from £1.6 million to £655k was there a reason for the large decrease?
• The uncertainty of the future Local Government Funding.
• The positive approach to the Homes for Ukraine Scheme.
• The percentage increase in gas and electricity, would there be a decrease when the alternative green energy sources are used?
• The emerging budget pressure in relation to planning enforcement and criticism the Council had received and why it was considered a high risk.
• The engagement figures of the residents that had been involved with Let’s Talk Devon or the reduction in the engagement. 

RESOLVED that:

1. The updated MTFP’s for the General Fund covering the years 2025/26 to 2028/29 be noted.
2. Cabinet agreed the principles and endorsed the approach to balancing the General Fund Revenue Budget outlined in paragraph 6.2.
3. Cabinet seek recommendations from the Policy Development Groups on the Round 1 Budget Proposals and their views on where savings could be sought and to what level.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Note: * Report previously circulated.