Issue - meetings

To receive a report from the Deputy Chief Executive (S151) on 2024/2025-2028/2029 Medium Term Financial Plan.

Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer on the Medium Term Financial Plan (MTFP) covering the period of 2024/2025 to 2028/2029.

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

·         This reports covers the fourth update of the Medium Term Financial Plan covering the five years 2024/25 to 2028/29. This report encompasses all elements including the General Fund, Housing Revenue Account and the Capital Programme.

·         The initial results of the budget element within the resident’s survey has been included within Section 3 of the report. The results are similar to previous years and the allocation of the Council’s resources reflect the public’s priorities as far as possible within the Council’s financial constraints and statutory requirements.

·         Since the December Cabinet, further work had been undertaken to reduce the shortfall further. £103k of further savings has been identified, the majority of which (£78k) results from changes to the Building Control Partnership where the council pick up a lower percentage of the costs. Crucially, the staff savings has reduced by more than half and no resulting redundancies.

·         In December the local government finance settlement was announced. Although very much a like for like settlement compared to 2023/24, this did announce £85k of additional grant funding above the forecast and additional Council Tax income following the announcement of 3% cap not 2%.

·         Due to the scale of the services that report into the Economy and Homes PDG, and the Council will not look at those PDG’s to identify any further savings for 2024/25 – although of course any ideas are always welcomed. 

·         Given the scale of the budgets the following PDGs are responsible for, the Council will still seek further savings from the Community and Environment PDG’s,  and I will be proposing that any remaining shortfall to the general fund after this round is met from reserves.

·         Appendix 2 details the Housing Revenue Account and proposes a balanced budget for the HRA. Since the December update, clarification has been given by government on the Social Rent Cap which allows the Council to increase by September CPI +1% (7.7%). Therefore the proposed Rent Charges now reflect this as per Appendix 3. The additional income generated enables increased investment in both the maintenance and further carbon reduction of our existing stock. It also enables greater investment in new stock through the housing development programme. There are also financial adjustments to update the bad debt provision and the recharges to the General Fund.

The proposed capital programme was presented for review. It remained largely the same as that presented to Cabinet in December, with the General Fund showing a small £1.5m reduction and the HRA showing no change in the 2024/25 deliverable budget. Changes in the assumed funding of the programme see forecast borrowing increase by just over £0.5m. Within the General Fund, the significant investment is the Cullompton Relief Road with a sufficient funding source still being sought. The HRA has  ...  view the full minutes text for item 93

To receive a report from the Deputy Chief Executive (S151) presenting to Members the updated Medium Term Financial Plan (MTFP) which covers the period 2024/25 to 2028/29 and potential savings options for consideration / approval.

The Cabinet had before it a report * which updated Member’s on the Medium Term Financial Plan (MTFP) which covered the period 2024/25 to 2028/29 and which identified potential savings options for consideration / approval.

The following was brought to Members’ attention:

·         There was an estimated budget shortfall of £2.1m for 2024/2025 rising to £5.2m by 2028/2029, however there was a legal obligation to balance the budget.

·         The three levels of risk in relation to the proposed savings was explained.

·         The detail of proposed savings would be discussed by the Policy Development Groups, the Cabinet were being asked to accept the ‘principles’ of this approach and provide a corporate steer.

·         All Members were encouraged to engage in the process.

·         Further significant savings would need to be identified with some decisions being very difficult to make.

·         Members would need to receive some advice as to what the proposed savings would mean in reality for service provision.

·         It was hoped that the Government’s Funding Settlement would be known by Christmas providing more financial certainty.

·         Opportunities for partnership working and the sharing of services with other authorities continued to be explored.

·         Conversations were also being had with Town and Parish councils.

·         Decisions in relation to discretionary and non-discretionary services would need to be considered as part of closing the budget gap.

RESOLVED that:

a)    The updated MTFP for the General Fund covering the years 2024/25 to 2028/29 be NOTED.

b)    The savings options within Appendix 2, taking into account the recommendations from the Policy Development Groups, be approved. 

c)    The Policy Development Groups be requested to identify further savings options and recommend back to Cabinet for approval.

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

Reason for the report:

The current budget for the General Fund shows a potential deficit of £765k, with an increasing funding deficit projected in future years. This highlights the need to take steps to plan for further reductions to the Council’s ongoing expenditure levels.

Note: * Report previously circulated.