Issue - meetings

This report:

·     Presents the latest medium-term financial plan (MTFP) of the council to reflect government announcements since the February 2022 budget report and updated assumptions.

·      Proposes a financial strategy to support the delivery of a legally balanced budget for 2023/24. 

·      Proposes a budget planning process and timeline for key financial reports.

·      Recognises the positive outturn from the 21/22 financial year end, the impact of the cost-of-living crisis, and the improvement in some of the key risk areas as identified in the setting of the 22/23 budget.

RECOMMENDED that Council approve the second homes premium and revisions to empty homes premium subject to their confirmation via the Levelling Up and Regeneration Bill.

RESOLVED that Cabinet: -

(a)     endorsed the updated MTFP position as set out in paragraph 15;

(b)    approved the financial strategy as referenced in paragraph 21;

(c)     acknowledged the cost of living and other operating pressures likely to impact in 2022/23 and future years;

(d)    acknowledged the potential mitigation strategy in respect of cost of living and 2022/23 financial pressures; and

(e)     approved the timeline for key financial reports during 2022/23 as set out in appendix A.

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 present a proposed financial strategy to support the delivery of a balanced budget for 2022/23.

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

Cabinet was advised that the report presented the latest medium-term financial plan (MTFP) of the council to reflect government announcements since the February 2022 budget report and updated assumptions.

Further to this Cabinet was informed that the report proposed a financial strategy to support the delivery of a legally balanced budget for 2023/24 and a budget planning process and timeline for key financial reports.

In addition, the report recognised the positive outturn from the 21/22 financial year end, the impact of the cost-of-living crisis, and the improvement in some of the key risk areas as identified in the setting of the 22/23 budget.

The Chairman of the Corporate and Community Overview and Scrutiny Committee addressed the Cabinet advising that at their recent meeting the Committee had had a long discussion on borrowing but had made no formal recommendations.

RECOMMENDED that Council approve the second homes premium and revisions to empty homes premium subject to their confirmation via the Levelling Up and Regeneration Bill.

RESOLVED that Cabinet: -

(a)     endorsed the updated MTFP position as set out in paragraph 15;

(b)    approved the financial strategy as referenced in paragraph 21;

(c)     acknowledged the cost of living and other operating pressures likely to impact in 2022/23 and future years;

(d)    acknowledged the potential mitigation strategy in respect of cost of living and 2022/23 financial pressures; and

(e)     approved the timeline for key financial reports during 2022/23 as set out in appendix A.

Voting: Unanimous

Portfolio Holder: Leader of the Council

The Leader of the Council and Portfolio Holder for Finance and Transformation 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. In the ensuing discussion the Portfolio Holder and the Director of Finance responded to a number of points raised by members of the committee including:

·     Whether the budget was prudent as regards the issued ‘Section 25’ report. There was a series of risks and assumptions as part of the 22/23 budget which had been tested and would be carefully monitored. It was noted that the 2021/22 budget appeared prudent given the third quarter forecast. The Leader commented that they had brought in a balanced published whilst delivering on their priorities.

·     That it was concerning that weekly meetings to assess spending were required, indicating spending set within a high-risk scenario. It was noted that there had been costs associated with and these were kept under control with the regular monitoring.

·     That the risk associated with the current cost of living crisis had not been factored in when setting the budget. A good start had been made to look at the impact of cost of living but if it was ongoing, it would add further pressure to the MTFP.

·     It was good news that provisions were set aside last year and there had been a positive financial outcome. Mitigation measures in place were pushing the pressure further down the line. Mitigations had mostly been one-off measures but there were also some ongoing issues.

·     There was concern regarding the increase to the Council’s debt threshold which was increasing significantly. Future generations would be responsible for the debt. The borrowing was to fund capital investments and housing, and these needed to be backed up with a sound business case. Borrowing to fund revenue pressures was not allowed. The Leader commented that as a group of councils previously there was under borrowing and the current administration wanted to invest and build in regeneration.

·     There was a projected funding gap, for which the Council plan was to generate significant revenue receipts. New commercial models had been mentioned but it was not explained what these receipts would be. Transformation had been delayed by Covid, once the end of transformation was reached there would be a balanced position even with the cost-of-living pressures. Discussions were currently underway on this, and it was expected that there would be more detail available on this within the next quarter paper.

·     That residents didn’t view the Council as a money generating enterprise or a commercially focused organisation. The Leader advised that there were ambitious to deliver £50 million of investments ongoing every year and there was record levels of investment into new and improved services.

·     That half of council tax-payers didn’t pay by direct debit and therefore would not automatically receive the rebate. The Council Tax Team were working very hard to get the money out to people and noted the  ...  view the full minutes text for item 16