Issue - meetings

Medium Term Financial Plan (MTFP) Update

Subscribe to updates

Meeting: 10/12/2024 - Cabinet (Item 84)

84 Medium Term Financial Plan (MTFP) Update PDF 670 KB

This report:

· Aims to ensure the council continues to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions will have on the underlying approved position and taking mitigating action where necessary. This includes the announcements relevant to local government in the Chancellors 30 October Budget statement.

· Should be considered alongside the “Assessing the serious cashflow issue caused by ever-increasing demand and cost outstripping High Needs Dedicated Schools Grant government funding” report on the 10 December 2024 Cabinet agenda. That separate report provides an update on the ongoing conversation with the Department for Education (DfE) and the Ministry of Housing, Communities and Local Government (MHCLG) further to the letter of the Director of Finance issued on the 22 May 2024. This letter outlined concerns about the impact the ever-increasing deficit on the Dedicated Schools Grant (DSG) will have on the council’s ability to set a legally balanced budget for 2025/26.

In addition, the report proposes not to change the Local Council Tax Support Scheme (LCTSS) for 2025/26 and therefore continue with the same scheme the council has operated since April 2019.

Additional documents:

Decision:

RESOLVED that Cabinet: -

(a) Acknowledges the ongoing progress being made to maintain a balanced budget position for 2025/26 and MTFP.

(b) Endorses the latest position regarding the developing 2025/26 Budget and MTFP position.

(c) Approve the continuation of the current Local Council Tax Support Scheme (LCTSS) into 2025/26.

(d) Request Portfolio Holders, Corporate Directors and Budget Holders bring forward the necessary additional savings, efficiencies and additional income proposals to enable the 2025/26 Budget to be balanced.

Voting: Unanimous

Portfolio Holder: Finance

Reason

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

To provide Cabinet with the latest high-level overview of the development of the 2025/26 Budget and 3-year medium-term financial plan with reference to the ongoing conversation with DfE, MHCLG and CIPFA regarding the difficulties presented by the accumulating DSG deficit.

Minutes:

The Portfolio Holder for Finance 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 aimed to ensure the council continued to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions will have on the underlying approved position and taking mitigating action where necessary, and that this included the announcements relevant to local government in the Chancellors 30 October Budget statement.

Cabinet was informed that the report should be considered alongside the “Assessing the serious cashflow issue caused by ever-increasing demand and cost outstripping High Needs Dedicated Schools Grant government funding” report on the 10 December 2024 Cabinet agenda, and that the separate report provided an update on the ongoing conversation with the Department for Education (DfE) and the Ministry of Housing, Communities and Local Government (MHCLG) further to the letter of the Director of Finance issued on the 22 May 2024, and that this letter outlined concerns about the impact the ever-increasing deficit on the Dedicated Schools Grant (DSG) will have on the council’s ability to set a legally balanced budget for 2025/26.

Cabinet was advised that in addition, the report proposed not to change the Local Council Tax Support Scheme (LCTSS) for 2025/26 and therefore continue with the same scheme the council has operated since April 2019.

The Chair of the Overview and Scrutiny Board addressed the Cabinet advising that at the meeting the previous evening the Board had supported the recommendations within the report.