Issue - meetings

This report:

·     Presents a refresh of the medium-term financial plan (MTFP) of the council to reflect the annual fundamental review and its extension to a 5-year time horizon.

·     Progress towards delivering a balanced budget for 2022/23 and highlights the key financial risks faced by the Council.

·     An update of the CIPFA Financial Management Code of Practice.

·     An update on the CIPFA Financial Resilience Index.

·     An update on the CIPFA Treasury Management and Prudential Code of Practice.

RESOLVED that Cabinet note: -

(a)           the current budget position for 2022/23; and

(b)           the progress made in refreshing the MTFP and its extension to cover the five-year period to 31 March 2027.

Voting: Unanimous

Portfolio Holder: Leader of the Council

Reason

To comply with accounting codes of practice and best practice which require councils to have a rolling multi-year medium term financial plan.

To provide Cabinet with the latest high-level overview of the medium-term financial plan.

To ensure Members develop a balanced budget for 2022/23.

The Leader of the Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report;

·     Presented a refresh of the medium-term financial plan (MTFP) of the council to reflect the annual fundamental review and its extension to a 5-year time horizon;

·     Showed progress towards delivering a balanced budget for 2022/23 and highlights the key financial risks faced by the Council;

·     Provided an update of the CIPFA Financial Management Code of Practice;

·     Provided an update on the CIPFA Financial Resilience Index; and

·     Provided An update on the CIPFA Treasury Management and Prudential Code of Practice.

RESOLVED that Cabinet note: -

(a)           the current budget position for 2022/23; and

(b)           the progress made in refreshing the MTFP and its extension to cover the five-year period to 31 March 2027.

Voting: Unanimous

Portfolio Holder: Leader of the Council

To consider the following Finance related reports scheduled for Cabinet consideration on 27 October 2021:

•   MTFP Update

The O&S Board is asked to scrutinise the reports and make recommendations to Cabinet as appropriate.

Cabinet member invited to attend for this item: Councillor Drew Mellor, Portfolio Holder for Finance and Transformation

The Cabinet report for this item is included with the agenda for consideration by the Overview and Scrutiny Board.

Medium Term Financial Plan (MTFP) Update – The Leader of the Council with Portfolio for Finance and Transformation presented a report, a copy of which had been circulated to each member of the Board and a copy of which appears as Appendix 'D' to these minutes in the Minute Book. The Leader and officers addressed a number of points raised by the Board including:

·       There were concerns that the funding gap had now increased from £7.1milion to £31.1 million. A Board member questioned the likelihood of achieving collectively all of the assumptions listed in the report. He commented on the additional spending allowed this year, the decision not to raise council tax, and that in his view the Council was acting recklessly. The Leader confirmed the current administration’s commitment to delivering low council tax and the rationale for the 1.5% increase in the council tax base. He explained that the Transformation programme provided the long-term solution to delivering savings, alongside maximising opportunities to invest in new assets. He referred to the different approaches taken by the current and previous administration and did not believe the Council was acting recklessly.

·       A Board member asked whether the pay award assumption had been underestimated bearing in mind the Unions were asking for a 10% increase. It was explained that Pay and Reward had taken forward the principle of a net nil cost. It was acknowledged that the pay situation may need reviewing should inflation remain at the current level.

·       The Finance Manager referred the Board to paragraph 25 of the report which listed the latest key assumptions, including the further growth in children’s services and the new 1.25% in employers’ national insurance contributions for the health and social care levy. Changes since the June report included the increase to 3.4% for the pay award and the increase in inflation.

·       A Board member asked what the basis was for the council tax base assumption and referred to current issues in the construction industry. It was explained that the assumption was not only based on housing but also on collection rates.

·       The latest position in respect of income generation was set out in the report. This indicated that while some areas had performed very well, assumptions had been adjusted to reflect that not all income streams would return to pre Covid levels until April 2024.

·       A Board member asked how the Council was preparing financially for the new social care proposals. It was explained that councils had been left worse off by the proposals and further work was still required on what was a long-term issue. The Portfolio Holder was taking an interventionist approach to the adult social care market, including the recent decision in relation to extra care provision.

·       A Board member asked if the Council was lobbying for new burdens funding to cover the costs of administering the allocations. It was explained that the Council was in dialogue with local MPs regarding a social care funding solution and the LGA continued to lobby  ...  view the full minutes text for item 97