Issue - meetings

To receive a report from the Deputy Chief Executive (S151) presenting the updated Medium Term Financial Plan (MTFP) which covers the period 2025/26 to 2028/29 and takes account of the Council’s key strategies (i.e. the Corporate Plan, Business Plans, Treasury Management Plan, Asset Management Plan, Work Force Plan and Capital Strategy) and demonstrates it has the financial resources to deliver the Corporate Plan. This models potential changes in funding levels, new initiatives, unavoidable costs and proposed service savings.

The Group had before it a report * from the Deputy Chief Executive (S151) presenting the updated Medium Term Financial Plan (MTFP) which covered the period 2025/26 to 2028/29 and took into account the Council’s key strategies (i.e. the Corporate Plan, Business Plans, Treasury Management Plan, Asset Management Plan, Work Force Plan and Capital Strategy) and demonstrated it had the financial resources to deliver the Corporate Plan.

The contents of the report were outlined with particular reference to:

·         The MTFP covered a period from 2025/26 to 2028/29.  Normally this would be a 5 year plan but were currently awaiting greater clarification from the new Government and the Chancellor’s budget announcement on 30^th October 2024.   The 5^th year will be added following this.

·         The MTFP focussed on a framework of principles those being:

(i)            General Fund Reserves

(ii)          Optimise Income Generation

(iii)         Allocation of Revenue Resources

(iv)         Allocation of Capital Resources

·         The MTFP built on a number of assumptions around inflation which were shown in Appendix 1.

·         Overall the result of pressures on the budget left a £1.2m gap rising to 4m by year 4 if the Council took no action.

·         Over the summer officers had looked at options which had been RAG rated as red, amber, green in terms of risk and deliverability.

·         If the green and amber savings were accepted this would reduce the £1.2m gap down to £400,000

·         All Policy Development Groups would be asked to look at possible savings which would then be presented to Cabinet.

Discussion took place regarding:

·         Control over Building Control fees was limited but there were some discretionary areas that could be looked at.

·         The effect of a brand new government elected very recently and as yet still to outline its direction in terms of local government funding. There was some certainty emerging regarding waste and some positive consultation in relation to the Planning fees. There was genuine concern however, regarding recent statements made by the Prime Minister about the forthcoming budget needing to be ‘painful’. As yet there had also been limited commentary around the issue of Right to Buy which was unsettling.

The Group NOTED the following:

1.    The updated MTFP for the General Fund covering the years 2025/26 to 2028/29;

2.    The principles and the approach to balancing the General Fund Revenue Budget outlined in paragraph 6.2 be endorsed;

3.    The emerging budget pressures included within Appendix 3;

RECOMMENDED to Cabinet that:

The Round 1 Budget Proposals as set out in Appendix 4a be approved.

(Proposed by the Chair)

Reason for the decision

As set out in the report.

Note: * Report previously circulated.