Agenda item

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 for the General Fund.

The Group had before it, and NOTED, a report * from the Deputy Chief Executive (S151) presenting the updated Medium Term Financial Plan (MTFP) which covered the period 2024/25 to 2028/29 for the General Fund (GF) and considered initial savings options.

The following was highlighted within the report:

·         This was a 5 year plan with figures in relation to years 2 – 4 being best guesses.

·         The previous budget gap for 2024/25 of £1.5m had now increased to over £2m partly as a result of stubborn inflation and the Government’s indicative increase in planning fees not transpiring.

·         Assumptions had been made in terms of not using any reserves and the need to revise the capital programme.

The Group considered the savings options outlined in Appendix 2 and discussion took place regarding:

·         Town Councils potentially being able to seek more ‘value’ from any assets transferred to them than the District Council could.

·         The Council was not intending to achieve savings by imposing compulsory redundancies but rather it would consider not replacing people automatically when they left and undertake a thorough review of the risks involved in each case.

·         What the green, amber and red risk categories meant.

·         Where the Group agreed with potential savings proposals this was undertaken as an ‘in principle’ support to the approach. It expected the Cabinet to consider the detail of each suggestion.

·         How staff sickness could best be managed and what the Council was already doing regarding this.

·         This Group had a very small budget area but could be influential in suggesting areas for income generation and this would continue to be a high priority ambition of the Group.

·         Members could attend other Policy Development Group meetings to offer specific ideas for budget savings in the relevant areas.

RECOMMENDED to the Cabinet that:

      i.        A review of leases, where appropriate in relation to commercial income be undertaken with a view to increasing income.

    ii.        Discussions regarding the transfer of assets and / or increases in financial contributions be progressed with the Town Councils.

   iii.        An increase in income from parking charges be considered, specifically in relation to cost centres CP520 / 530 / 540. 

   iv.        Support be provided to a Council wide approach to de-scoping or downsizing activity in certain areas having considered all the relevant risks and assuming turnover allows for natural wastage in identified areas.

    v.        A reduction in agency spend be considered wherever appropriate.

   vi.        A reduction in the cost of staff sickness be pursued.

(Proposed by the Chairman)

Reason for the decision

By undertaking an annual review of the MTFP the Council could ensure that its Corporate Plan priorities were affordable. The implications of the revised budget gap were set out within the paper. Many areas require greater clarity, particularly around national funding and the possibility of additional funding to offset the implications of the Cost of Living Crisis. Therefore a number of key assumptions underpinned the reported position, which would be refined as greater clarity was received through the budget setting process.

It was NOTED that there could be possible cost reductions in relation to Business Rates, energy costs and fuel costs during 2024/25.

Note: (i) * Report previously circulated.

(ii) Cllr N Letch requested that her abstention from voting in relation to recommendation number ‘iv’ be noted.