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Decision details

Medium Term Financial Analysis (MTFA) 2022/23 to 2025/26

Decision Maker: Co-operative Executive

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

1.    Note the forecast position;

2.    Note, as a planning assumption, core Council Tax increases of 2% each year;

3.    Note the additional pressures caused by the COVID crisis, and in response consider what further transformation savings are required, and lobby Central Government for additional financial support;

4.    Note that the Council’s current level of reserves provides a limited amount of time for action to be taken strategically in response to the COVID crisis and the more general financial position, but that firm actions will be needed, on current projections, to maintain financial stability in the short to medium term. These actions will include further co-operation with other key stakeholders, in particular the NHS; and

5.    Note that unless firm action is taken to contain pressures, deliver agreed savings, and focus any new spending on a small number of key priorities, the Council’s financial position will soon spiral out of control.

 

Decision:

11.1

To provide Members with details of the forecast financial position of the Council for the next 4 years (2022/23 to 2025/26) and to set the financial constraints within which the budgeting and business planning process will need to work to achieve a balanced budget position over the medium term.

 

 

11.2

RESOLVED: That Co-operative Executive:-

 

1.    Note the forecast position;

 

2.    Note, as a planning assumption, core Council Tax increases of 2% each year;

 

3.    Note the additional pressures caused by the COVID crisis, and in response consider what further transformation savings are required, and lobby Central Government for additional financial support;

 

4.    Note that the Council’s current level of reserves provides a limited amount of time for action to be taken strategically in response to the COVID crisis and the more general financial position, but that firm actions will be needed, on current projections, to maintain financial stability in the short to medium term. These actions will include further co-operation with other key stakeholders, in particular the NHS; and

 

5.    Note that unless firm action is taken to contain pressures, deliver agreed savings, and focus any new spending on a small number of key priorities, the Council’s financial position will soon spiral out of control

 

 

11.3

Reasons for Decision

 

 

11.3.1

To inform Co-operative Executive Members of the latest changes to the Council’s medium term forecasts, and to provide a strategic framework for the development of budget proposals and the business planning process beyond 2022/23.

 

 

11.4

Alternatives Considered and Rejected

 

 

11.4.1

A number of alternative courses of action are considered as part of the process undertaken by Officers before decisions are recommended to Members.  The recommendations made to Members represent what Officers believe to be the best options available to the Council, in line with Council priorities, given the constraints on funding and the use to which funding is put within the Revenue Budget and the Capital Programme.

 

 

11.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

11.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

11.7

Respective Director Responsible for Implementation

 

 

 

Executive Director, Resources

 

 

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Overview and Scrutiny Management Committee

 

 

Report author: Eugene Walker

Publication date: 22/10/2021

Date of decision: 20/10/2021

Decided at meeting: 20/10/2021 - Co-operative Executive

Effective from: 29/10/2021

Accompanying Documents: