Issue - meetings

At its meeting on 1 June 2022, the Executive Committee considered the interim Medium Term Financial Strategy and RECOMMENDED TO COUNCIL that it be ADOPTED.  

29.1           At its meeting on 1 June 2022, the Executive Committee had considered the interim Medium Term Financial Strategy and recommended that it be adopted.

29.2           The report which was considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 18-33.

29.3           The Vice-Chair of the Executive Committee proposed the recommendation of the Executive Committee and it was seconded.

29.4           Upon being put to the vote, it was

                  RESOLVED          That the interim Medium Term Financial Strategy be                                           ADOPTED. 

To receive an update on current financial projections over the next two financial years and recommend the interim Medium Term Financial Strategy to Council for adoption.

That it be RECOMMENDED TO COUNCIL that the Interim Medium Term Financial Strategy 2023/24-2024/25 be ADOPTED.  

7.1             The report of the Head of Finance and Asset Management, circulated at Pages No. 15-30, set out an interim Medium Term Financial Strategy for 2023/24-2024/25 which Members were asked to recommend to Council for adoption.

7.2             The Finance Manager explained that the Council usually agreed a five year Medium Term Financial Strategy with it being good practice to have financial planning over the medium to long term. However, unfortunately, the Council did not have the information required from central government to make it possible to plan in that way this year. The document before Members set out the Council’s estimates of its commitment expenditure, identified spending pressures faced and the budget savings needed to achieve the recommended Council Tax levels for each of the three years of the plan which was based on assumptions of government funding levels during the period. With the uncertainty about spending plans from the government, the war in Ukraine and increasing inflation, it was extremely difficult to predict the Council’s future finances but at the moment it was looking at a possible £2.94million deficit in the next two years. In the spending review in October 2021, the government had given no new money to local government except for social care and, as there had been no announcements for next year, it was assumed there would be another roll-over year with a lot of ‘stop gap’ grants – one-off funding to plug the gaps. The Council had expected a business rates reset scheme but that had not transpired – this was good for the Council as it would have redistributed the Borough’s growth to other areas; however there was still uncertainty about when the reset would happen. The double roll over position would leave the Council better off although in an uncertain position going forward. It was hoped projects such as the solar canopy, trade waste and the triannual valuation of the pension fund would help bridge the budget gap over the next three years.

7.3             It was proposed, seconded and