The Head of Financial Services has submitted a report to agree the budget setting strategy for the forthcoming Medium Term Financial Plan 2023-24 to 2026-27.

Cabinet is recommended to:

1.      Approve the budget setting strategy for the Medium Term Financial Plan 2023-24 to 2026-27.

The Head of Financial Services had submitted a report seeking agreement to the budget setting strategy for the forthcoming Medium Term Financial Plan (MTFP) 2023-24 to 2026-27.  An update was also provided on the current budgetary position and expected future pressures.

The Head of Financial Services presented the report and outlined the process of service reviews set out at paragraphs 9 and 10 of the report, which would be undertaken using a set of principles developed by the Senior Management Team.  It was noted that the financial climate remained very challenging, with high inflation rates and increasing borrowing rates and energy costs.  For the General Fund, the deficit at year 4 of the Medium Term Financial Plan was forecast to be c £5.5m against a spend of £27m.  This had been based on a number of assumptions as outlined in the report. An £11m use of reserves (approximately half of useable reserves) over the life of the MTFP was also projected.

No further spend was expected to become affordable on the Housing Revenue Account until 2025 – 2026.

The Head of Financial Services reported that the budget setting process was being started earlier than usual, in order to allow time for the additional work needed to enable a balanced budget to be delivered.  Cabinet heard that the process would involve integrating future business planning for services as part of the ‘Fit for the Future’ programme with addressing the financial challenges.

It was noted in debate that the Plans which were integral to the MTFP, shown at paragraph 1 of the report, were very closely connected.  Therefore, there was a need for awareness of the implications for other plans and the overall budget as a result of any proposed changes to individual plans.

It was also requested that the phasing of the savings be included when the report comes back to Cabinet later in the year, to enable monitoring of progress on delivery.

Cabinet resolved to:

1.     Approve the budget setting strategy for the Medium Term Financial Plan 2023 – 2024 to 2026 – 2027.