Agenda item

To consider a report of the Deputy Chief Executive (S151) presenting to Member’s the updated Medium Term Financial Plan (MTFP) which covers the period 2022/23 to 2026/27 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 Cabinet had before it a *report of the Deputy Chief Executive (S151) presenting to Member’s the updated Medium Term Financial Plan (MTFP) which covered the period 2022/23 to 2026/27 and took 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 demonstrated it had the financial resources to deliver the Corporate Plan.

The Cabinet Member for Finance outlined the contents of the report stating that the MTFP was based on assumptions, it was not a plan or a budget but the best prediction that could be made at the current time and showed how the Council would strategically manage its finances in order to support the delivery of the priorities detailed in the Corporate Plan.  He highlighted appendix 2 which considered the shortfall in the General Fund for the next financial year and following years, the budget options to address the budget gap, the detail within the Capital Programme highlighted within Appendix 5 and the borrowing requirements.

Consideration was given to:

·         The HIF projects and the possible shortfall and whether that would be recouped via planning obligations

·         The gap in the General Fund had been discussed as early as the beginning of the year and strategic discussions were promised but had not taken place with Members

·         There was a need for a clear strategy to fund the gap in the budget

·         The Cabinet Member for Finance and the S151 officer were willing to meet with members to hear their ideas

·         It was felt that this was a problem for the Cabinet and that members wished to see clear proposals and plans

·         The borrowing set out within the Capital Programme and the funding of 3 Rivers Developments Limited which would increase the debt – the meeting was informed that the social housing programme would be supported through borrowing and possible grant funding via Homes England

·         Whether there was any provision in the MTFP for the Council to be Carbon neutral and the cost of retro fitting the current housing stock

·         Possible 3 Rivers impairments

·         The bid for the Levelling Up Fund and why was it assumed that only the Cullompton Relief Road bid would be successful and not the Tiverton Urban Extension – the meeting was informed that the Council was only allowed to identify one project and that a decision was expected in December

·         The multi million pound loan to 3 Rivers was not mentioned specifically as an ongoing risk – surely it was a significant risk as identified by the Auditors – the meeting was informed that all investments were a risk, but the investments had been approved as part of the Business Plans; with regard to the Audit, controls were in place and the risk was being managed

It was AGREED that:

a)    The updated MTFP’s for the General Fund and Housing Revenue Account and the updated Capital Programme all covering the five years 2022/23 to 2026/27 be noted.

b)    The proposals outlined in paragraph 9.2 as the approach to balancing the General Fund Revenue Budget be endorsed.

Note:  *Report previously circulated, copy attached to minutes.