The
Cabinet had before it a report * from the Deputy Chief Executive
(S151) Officer presenting the Medium Term Financial Plan
(MTFP).
The
Cabinet Member for Governance, Finance and Risk outlined the
contents of the report with particular reference to the
following:
- The
Medium Term Financial Plan (MTFP) for the General Fund covering the
years 2025/26 to 2028/29.
- The
MTFP would normally cover a 5 year horizon, the change in
Government and the importance of the Autumn Budget for the future
of public services, adding a new year 5had been delayed until the
Council was better informed.
- The
report only covered the General Fund, whereas normally the report
would also include the Housing Revenue Account and the Capital
Programme. These would be developed and would come through the
governance process in due course.
- The
latest forecast position was based upon the most up to date
information. It was important to agree
the underlying principles set out in Section 2.6 of the
report.
- The
underlying assumptions were included within Appendix 1, along with
some sensitivity analysis that gave some scale to the variability
of the MTFP and would be refined as the Council progressed through
the budget process.
- The
headline position for the General Fund was that there was a
projected shortfall in 2025/26 of £1.2 million, increasing to
£4 million by 2028/29.
- Senior officers have identified a range of budget options to
address the budget shortfall using the red, amber and green
assessment, which would be presented to the relevant Policy
Development Groups for discussion, with the recommendation to
support the green and amber options.
- Newly identified budget pressures in Appendix 3 and savings
options in Appendix 4A which were relevant to Cabinet only, or
Appendix 4B for all saving options.
Discussion took place regarding:
- The
figures and comparator data on staff turnover and
sickness.
- The
annual shortfall decreases in 2027 from £1.6 million to
£655k was there a reason for the large decrease?
- The
uncertainty of the future Local Government Funding.
- The
positive approach to the Homes for Ukraine Scheme.
- The
percentage increase in gas and electricity, would there be a
decrease when the alternative green energy sources are
used?
- The
emerging budget pressure in relation to planning enforcement and
criticism the Council had received and why it was considered a high
risk.
- The
engagement figures of the residents that had been involved with
Let’s Talk Devon or the reduction in the
engagement.
RESOLVED that:
- The
updated MTFP’s for the General Fund covering the years
2025/26 to 2028/29 be noted.
- Cabinet agreed the principles and endorsed the approach to
balancing the General Fund Revenue Budget outlined in paragraph
6.2.
- Cabinet seek recommendations from the Policy Development Groups
on the Round 1 Budget Proposals and their views on where savings
could be sought and to what level.
(Proposed by Cllr J Buczkowski and seconded by Cllr S
Clist)
Note: * Report previously circulated.