Issue - meetings

To note the report of the Head of Finance, Procurement & Commercial Services submitted to Executive Overview & Scrutiny Committee on 6 September and Cabinet on 13 September 2022 and consider the future work of the Committee in respect of budget matters.  A copy of the minutes are attached for information.

The Committee considered the report of the Head of Finance, Procurement & Commercial Services, as contained on pages 11 to 30 of the Book of Reports, previously submitted to Executive Overview & Scrutiny Committee on 6 September and Cabinet on 13 September 2022, which set out the future work of the Committee in respect of budget matters.  A copy of the minutes were attached to the report for information.

The Committee was advised that the report was a starting point for discussions around the current financial position and future debates in respect of income generation and savings.

Comments and questions were raised in respect of the following:

·       Recruitment issues – nationally and locally

·       The budget gap and how to address eg. A review of services, new business, shared services

·       Budget assumptions – Inflation, Insurance, Pay Award

·       Income generation and savings plan

The Committee was advised that officers would prepare some ideas for income generation and savings for consideration by Members at a future meeting.

RESOLVED:   That the report be noted.

To consider the report of the Head of Finance, Procurement & Commercial Services. 

(Relevant Portfolio Holder: Councillor A Yates)

The Leader introduced the report of the Head of Finance, Procurement & Commercial Services, which presented the updated Medium-Term Financial Forecast (MTFF) for 2023/24 to 2025/26 and the latest forecast budget gap for the three years of £3.014m, comprising:

·     £0.539m in 2023/24

·     £1.474m in 2024/25

·     £1.001m in 2025/26

The report also detailed the reserves position as at 31 March 2022 and set out the annual budget setting process for 2023/24.

The Leader advised that the report had been considered by the Executive Overview & Scrutiny Committee on 6 September 2022, the minutes of which had been circulated prior to the meeting.

In reaching the decision below the Cabinet considered the decision of the Executive Overview & Scrutiny Committee, the report before it and the recommendations contained therein.

RESOLVED:   A.     That the latest Medium-Term Financial Forecast (MTFF) for 2023/24 to 2025/26 and the latest reserves position as at 31 March 2022, be noted.

B.     That the annual budget setting process for 2023/24, detailed in paragraph 9 of the report, be endorsed.

C.     That the Council continue to actively look at options for reducing current spending.

To consider the report of the Head of Finance, Procurement & Commercial Services. 

Consideration was given to the report of the Head of Finance, Procurement and Commercial Services as detailed on pages 273 to 288 of the Book of Reports, which presented to members the updated Medium-Term Financial Forecast (MTFF) for 2023/24 to 2025/26.

The Corporate Finance Manager outlined the report which informed of the latest forecast budget gap for the three years of £3.014m, comprising:

• £0.539m in 2023/24
• £1.474m in 2024/25
• £1.001m in 2025/26

Detailing the following:

• The graphical presentation of the budget gap in section 5.2 split between net budget and funding, that highlights the forecast funding levels are not increasing at the same rate as the net budget.
• Section 5.5 highlights the notable funding assumption of the business rates baseline reset and reforms are assumed to be implemented for 2024/25 and this potentially reduces funding received from business rates by c.£2m.
• Section 9.2 the proposed timeline for the 2023/24 budget setting.

RESOLVED:

1.  That the report, setting out the latest Medium-Term Financial Forecast (MTFF) for 2023/24 to 2025/26 and the latest reserves position as at, 31 March 2022, be noted.

2. That the annual budget setting process for 2023/24, detailed in paragraph 9 of the report, be endorsed.