Issue - meetings

To update Members on the General Fund Medium Term Financial Strategy (MTFS).

Cabinet received a report giving an update on the General Fund Medium Term Financial Strategy (MTFS).

Members agreed that the potential for a 3 year budget settlement following the Government’s October Budget Statement would be welcomed which would allow the Budget to be managed on a longer term basis. 

Cabinet also agreed the importance and good work of the Commercial and Investment Working Group in contributing to alleviating Budget pressures.

It was RESOLVED:

1.    That the change to the MTFS principles, as outlined in paragraph 3.11 to the report and as amended in paragraph 4.9.7 be approved.

2.    That for modelling purposes, Council Tax increases be set at the maximum threshold allowed by the Government in order to help achieve a balanced budget as set out in paragraph 4.6.10.  The MTFS has modelled a 1.99%, but the CFO recommends that if the threshold is set higher by the Government this should be applied.

3.    That the updated inflation assumptions used in the MTFS as set out in Section 4 of the report be approved.

4.    That the approach to the ‘Balancing the Budget’ options as set out in section 4.8 be approved.

5.    That a Balancing the Budget Target of £2.985million, (of which £1.285million relates to 2025/26), be approved for the period 2025/26 – 2027/28, as set out in section 4.9 of the report.

6.    That General Fund growth is only approved for the Council’s FTFC priorities and that any growth would need to be funded from increased savings in addition to the £2.985million target identified.

7.    That a minimum level of balances for the General Fund of £3.45million be approved for 2025/26 as set out in paragraph 4.10.7.

8.    That the MTFS be regularly reviewed and revised to reflect any material financial pressures so forecasts are updated and re-presented to the Cabinet for approval.

9.    That the Trade Unions and staff be consulted on the key messages contained within the MTFS and more specifically when drawing up any proposals where there is a risk of redundancy.

Cabinet received a report giving an update on the General Fund Medium Term Financial Strategy (MTFS).

The report set out the 5 year projection of expenditure, income and reserves for General Fund services and identified the past and ongoing financial challenges that the Council was facing, having had to save £15million cumulatively since 2010.

Members were advised that after taking inflation and other pressures into account, assuming a 1.99% increase in Council Tax, that £1.285miliion in savings would be required for 2025/26.  In addition to this, over the next four years, a total of £3.685million would need to be found if the Council was to remain financially resilient.  It was advised that savings had already been identified and that further options would come forward in the Fees and Charges report to the October Cabinet with the Balancing the Budget report considered at the November meeting.

Members agreed that the potential for a 3 year budget settlement following the Government’s Autumn Spending Review and Budget Statement would be welcomed which would allow the Council’s Budget to be managed on a longer term basis. 

Cabinet also agreed the importance and good work of the Commercial and Investment Working Group in contributing to alleviating Budget pressures.

It was RESOLVED:

1.    That the change to the MTFS principles, as outlined in paragraph 3.11 to the report and as amended in paragraph 4.9.7 be approved.

2.    That for modelling purposes, Council Tax increases be set at the maximum threshold allowed by the Government in order to help achieve a balanced budget as set out in paragraph 4.6.10.  The MTFS has modelled a 1.99%, but the CFO recommends that if the threshold is set higher by the Government this should be applied.

3.    That the updated inflation assumptions used in the MTFS as set out in Section 4 of the report be approved.

4.    That the approach to the ‘Balancing the Budget’ options as set out in section 4.8 be approved.

5.    That a Balancing the Budget Target of £2.985million, (of which £1.285million relates to 2025/26), be approved for the period 2025/26 – 2027/28, as set out in section 4.9 of the report.

6.    That General Fund growth is only approved for the Council’s FTFC priorities and that any growth would need to be funded from increased savings in addition to the £2.985million target identified.

7.    That a minimum level of balances for the General Fund of £3.45million be approved for 2025/26 as set out in paragraph 4.10.7.

8.    That the MTFS be regularly reviewed and revised to reflect any material financial pressures so forecasts are updated and re-presented to the Cabinet for approval.

9.    That the Trade Unions and staff be consulted on the key messages contained within the MTFS and more specifically when drawing up any proposals where there is a risk of redundancy.