Agenda item

To receive a report from the Deputy Chief Executive (S151) presenting to Member’s the updated Medium Term Financial Plan (MTFP) which covers the period 2025/2026 to 2028/2029 and takes account of the Council’s key strategies and demonstrates it has the financial resources to deliver the Corporate Plan.

The Group were presented with a report * from the Deputy Chief Executive presenting the updated Medium Term Financial Plan (MTFP) which covered the period 2025/2026 to 2028/2029 and took into account the Council’s key strategies and demonstrated it had the financial resources to deliver the new 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 the Council was currently awaiting greater clarification from the new Government and the Chancellor’s budget announcement on 30th October 2024. The 5th 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 circa £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:

·         Whether there were any indications regarding the level of Local Government funding emerging following the election of the new Government?

·         It was explained that some ‘snippets’ of information were coming through regarding planning fees and housing targets and funding but little else at the current time.

·         The 30^th October Government budget would be very important in terms of setting the direction and intention of the Government towards lowers tiers of government.

·         It was hoped that since the new Government had not been in power for very long, next year’s Local Government settlement would roll forward but this would not be known until approximately the middle of December.

·         The Local Government settlement only represented 10% of overall funding.

·         The level of Council Tax increase that district councils’ could set was expected to be 2% or £5, whichever was highest.

·         Conversations had been taking place with Town and Parish Councils’ regarding them acquiring assets at an agreed price but no firm offers had been received yet.

·         There would still be a shortfall for next year’s budget even if the proposals set out in the report were agreed, therefore Members were encouraged to come forward with additional suggestions for savings.

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 approach to balancing the General Fund Revenue Budget outlined in paragraph 6.2;

3.    The emerging budget pressures included within Appendix 3;

RECOMMENDED to Cabinet that:

The green and amber round 1 budget proposals as set out in Appendix 4a, be approved.

(Proposed by Cllr L Knight and seconded by Cllr G Cochran)

Reason for the decision

As set out in the report.

Note: (i) * Report previously circulated.

(ii) Cllr N Letch requested that her abstention from voting be recorded.