Agenda item

9.1

The report set out the medium term financial position for the Council and proposes how individual Policy Committee budget targets for 2023/24 are set.

9.2

UNANIMOUSLY AGREED: That Strategy and Resources Policy Committee:-

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

2.     Note, as a planning assumption, Adult Social Care Precept increases of 1% each year.

3.     Note, the three-year Government settlement was prior to the high inflation rates and lobby Central Government for additional financial support to offset the pressure caused.

4.     Note, the Council’s current level of reserves provides a limited amount of time for action to be taken strategically in response to the financial position;

5.     Note, unless firm action is taken to contain pressures and deliver significant savings and/or mitigations, the Council’s financial position will soon be unstainable.

6.     Note, an updated MTFA will be presented in October 2022 following identification of savings by Committees and refinement of pressures in the coming months. Any further action required will also be set out.

7.     Approve that Policy Committees will be asked to develop savings / additional income options that cover their own pressures – in effect cash standstill.

8.     Require Policy Committees to report at their meetings in September on how they can balance their budgets.

9.     Note that a consolidated report based on the individual Policy Committee reports will be brought to the 12 October meeting of this Committee.

9.3

Reasons for Decision

9.3.1

The majority of the recommendations are asking Members to note the assumptions applied to, and the unsustainable financial position highlighted by, the medium-term financial analysis. The aim is to set out the scale of the challenge ahead, the limited resources and timescales in which to deliver change and some of the difficult decisions that will need to be taken.

The main decision for Members set out within the recommendations is the preferred approach to tackling the forecast budget gap for 2023/24. Policy Committees will be asked to develop savings / additional income options that cover their own pressures – in effect cash standstill.

This approach is deemed to Page 59 Page 16 of 33 be the most equitable and likely for ensuring a balanced budget is delivered for 2023/24.

9.4

Alternatives Considered and Rejected

9.4.1

The Council is required to both set a balance budget and to ensure that in-year income and expenditure are balanced. No other alternatives were considered.

9.1

The Director of Finance and Commercial Services presented the report which provided the committee with an overview and set out the medium term financial position for the Council and proposed how individual Policy Committee budget targets for 2023/24 are set.

9.2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

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

2.     Note, as a planning assumption, Adult Social Care Precept increases of 1% each year.

3.     Note, the three-year Government settlement was prior to the high inflation rates and lobby Central Government for additional financial support to offset the pressure caused.

4.     Note, the Council’s current level of reserves provides a limited amount of time for action to be taken strategically in response to the financial position;

5.     Note, unless firm action is taken to contain pressures and deliver significant savings and/or mitigations, the Council’s financial position will soon be unstainable.

6.     Note, an updated MTFA will be presented in October 2022 following identification of savings by Committees and refinement of pressures in the coming months. Any further action required will also be set out.

7.     Approve that Policy Committees will be asked to develop savings / additional income options that cover their own pressures – in effect cash standstill.

8.     Require Policy Committees to report at their meetings in September on how they can balance their budgets.

9.     Note that a consolidated report based on the individual Policy Committee reports will be brought to the 12 October meeting of this Committee.

9.3

Reasons for Decision

9.3.1

The majority of the recommendations are asking Members to note the assumptions applied to, and the unsustainable financial position highlighted by, the medium-term financial analysis. The aim is to set out the scale of the challenge ahead, the limited resources and timescales in which to deliver change and some of the difficult decisions that will need to be taken.

The main decision for Members set out within the recommendations is the preferred approach to tackling the forecast budget gap for 2023/24. Policy Committees will be asked to develop savings / additional income options that cover their own pressures – in effect cash standstill.

This approach is deemed to Page 59 Page 16 of 33 be the most equitable and likely for ensuring a balanced budget is delivered for 2023/24.

9.4

Alternatives Considered and Rejected

9.4.1

The Council is required to both set a balance budget and to ensure that in-year income and expenditure are balanced. No other alternatives were considered.