Agenda item

To present to Member’s the updated Medium Term Financial Plan (MTFP) which covers the period 2025/26 to 2028/29 for the General Fund (GF) and consider initial savings options.

The Group were presented with a report * from the Deputy Chief Executive (S151 Officer) 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 were currently awaiting greater clarification from the new Government and the Chancellor’s budget announcement on 30th October 2024. The 5th year would be added following that.

·         The MTFP would normally include the Housing Revenue Account and Capital Programme updates but those were still being developed and the General Fund (GF) were slightly ahead of the game at this time of the year.

·         The MTFP focussed on a framework of principles those being: (i) Each year the Council would target a balanced revenue budget without the use of General Fund reserve balances (ii) Optimise Income Generation to protect service delivery (iii) Allocation of Revenue Resources to statutory or higher priority services where necessary (iv) Allocation of Capital Resources to deliver the best value for money and minimise borrowing.

·         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.

·         There were no budget pressures (appendix 3) or savings pressures (appendix 4a) that related to this PDG.

·         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.

Discussion took place regarding:

·         What budgets related to the service areas of this PDG? - At the next meeting of the PDG there would be some training to assist Members of this PDG and to remind them of the service areas that each PDG was responsible for.

·         The saving of £11,000 in relation to a reduction in engagement activity opportunities digitally and the impact on Let’s Talk Mid Devon. As no-one was available to answer what the impact on Let’s Talk Mid Devon would be, it was AGREED that the amber rated saving relating to Let’s Talk Mid Devon NOT be recommended to Cabinet and it to come back to the December meeting, with an officer available to answer questions as to what the impact would be.

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, except for the amber rated saving relating to Let’s Talk Mid Devon, as set out in Appendix 4b, be approved.

(Proposed by Cllr A Glover, seconded by Cllr C Harrower.)

Reason for the decision

As set out in the report and further information wanted in relation to the saving suggested relating to Let’s Talk Mid Devon.

Note:   * Report previously circulated.