Issue - meetings

2024/25 Budget Strategy and MTFS Update Report

Purpose

This report sets out the Budget Strategy to support the preparation of the 2024/25 revenue and capital budgets and presents an updated Medium Term Financial Strategy forecast.

Recommendation

That Cabinet resolves to:

1. Approves the 2024/25 Budget Strategy as outlined in Section 4 of the report.

2. Notes the forecast surplus on the General Fund revenue budget in 2024/25 and proposed transfer to the Financial Resilience Reserve.

Additional documents:

Minutes:

This report set out the Budget Strategy to support the preparation of the 2024/25 revenue and capital budgets and present an updated Medium Term Financial Strategy forecast.

The Chair then introduced the report in the absence of the Deputy Leader and Cabinet Member for Finance Councillor Evemy. The following points were outlined.

It was noted that the financial pressures faced by the Council were faced by councils nationally such as inflation and reductions in central government funding. It was highlighted that the Cabinet should be mindful of these factors for the upcoming budget.
It was highlighted that the Cabinet Transformation Working Group was working with partners in Publica and Ubico to reduce the in-year financial pressures of £860,000 identified and further external pressures of around £450,000.
It was noted in table ES3 that in 2024 a budget shortfall of £1.3 million was projected.
It was noted that in the financial years of 2026/27 and 2027/28 the upcoming fairer funding review was projected to reset the position on business rates and lead to a reduction in income from £5 million to £2.3 million.
It was highlighted that in 2024/25 and 2025/26 that the focus would be on building reserves to mitigate the challenges later in the Medium Term Financial Strategy.
It was outlined that capital projects would need to be reviewed carefully in line with their business cases due to increases in interest rates.

The Deputy Chief Executive then addressed Cabinet and outlined the following points:

It was outlined at paragraph 2.9 of the report that there was no immediate risk of a Section 114 notice needing to be issued, but there is a budget gap which must be closed.
It was noted that the projected surplus for the next two financial years would be used to build the financial reserves for the year 2026/27 and 2027/28.
It was noted that the staff pay award for 2023/24 had been agreed with an increase of £1,925 or 3.88% depending on individual salaries.
It was highlighted that high interest rates were a risk in terms of any borrowing undertaken but had boosted cash balances that the Council holds.
It was noted that the work up to the budget in 2024 was focussed on financial sustainability and delivering upon the priorities for the Council.

The Cabinet wished to thank officers for their work in driving down the budget gap and providing support to residents.

There were questions about the impact of the Fairer Funding Review and what representations were being made. The Deputy Chief Executive confirmed that the impact would be moving funding from district councils to those local authorities with responsibility for Adult Social Care. The Chair then highlighted on the question of representations that these conversations would be brought up through the Local Government Association.

It was highlighted that the consideration of fees and charges would need to take into account the increase in costs of providing non-statutory services.

Councillor Coleman as an observer asked about contributions to the Local Government Pension ... view the full minutes text for item 192

Meeting: 31/10/2023 - Overview and Scrutiny Committee (Item 295)

Webcast for 31/10/2023 - Overview and Scrutiny Committee

295 2024/25 Budget Strategy and MTFS Update Report PDF 395 KB

Purpose

This report sets out the Budget Strategy to support the preparation of the 2024/25 revenue and capital budgets and presents an updated Medium Term Financial Strategy forecast.

Recommendations

That the Overview and Scrutiny Committee scrutinises the report and agrees any recommendations it wishes to submit to the Cabinet meeting on 2 November 2023.

Invited

Councillor Joe Harris, Leader of the Council (to join remotely)

David Stanley, Deputy Chief Executive Officer

Additional documents:

Minutes:

The Cabinet Member for Communities and Public Safety introduced the item, alongside the Deputy Chief Executive.

The purpose of the report was to set out the Budget Strategy to support the preparation of the 2024/25 revenue and capital budgets and present an updated Medium Term Financial Strategy (MTFS) forecast.

Budgetary pressures were noted, with reserves being utilised. The budget setting process was also made uncertain by the fact that the final local government settlement had yet to be received; the Local Government Association was actively lobbying for this.

The Deputy Chief Executive stated that a risk adverse approach had been taken to the budget setting, with reserves being built up wherever possible. However, due to the budget gap, it was noted that tough decisions would have to be made. The Cabinet Transformation Working Group had been looking at ways to make savings.

Members discussed the report and raised the following points;

Members discussed whether colour printing was needed for committee report packs, although the Cabinet Member pointed out that all members could opt out of printed copies, and encouraged them to use digital papers as much as possible.
The savings and income generation proposals included £1.5m from proposals such as Sunday charging in car parks, cost recovery of garden waste collection services, and changes to the waste and recycling collection services to achieve increased efficiency. The UBICO savings were discussed, with the Deputy Chief Executive stating that the savings were made through restructuring collection rounds to improve efficiency. It was also stated that Garden Waste collection was a discretionary service.
The Cabinet Transform working group was discussed. The Director of Governance and Development stated that the minutes of these were not publically available due to the confidential nature of the group, but that proposals would be presented to Council through the budget process.
An asset management strategy was being developed.
Concerns were raised around the ambitions of the capital programme given current market volatility.
Members discussed the proposals to take the provision of services back in house and the costs that would be associated with this. The Deputy Chief Executive stated that the review and transition plans would need to be within the MTFS. The Deputy Chief Executive also warned members to exercise caution over discussing the proposals, as officers employed by Publica were in the room.

RESOLVED: To note the report.

Issue - meetings

2024/25 Budget Strategy and MTFS Update Report

Meeting: 02/11/2023 - Cabinet (Item 192)

Meeting: 31/10/2023 - Overview and Scrutiny Committee (Item 295)

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