Agenda item

To consider a report providing an update on the General Fund Medium Term Financial Strategy (2023/24 – 2027/28).

The Executive considered a report in respect of an update on the General Fund Medium Term Financial Strategy 2023/24 – 2027/28.

It was RESOLVED:

1. That the change to the Medium Term Financial Strategy (MTFS) principles, as outlined in Paragraph 3.11 and as amended in Paragraph 4.9.11 of the report, be approved.

2. That, for modelling purposes, Council Tax increases be set at the threshold allowed assumed at 2.99%, subject to any change in Government rules, in order to help achieve a balanced budget, as set out in Paragraph 4.6.8 of the report.

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

4. That the recommendation set out in Paragraph 4.3.4 of the report to transfer a maximum of £225,000 from the Business Rates Reserve should the SG1 Swingate site Joint Venture not proceed, be approved.

5. That the approach to “Balancing the Budget” options, as set out in Section 4.8 of the report, be approved.

6. That an amount of £300,000 for 2024/25 be approved for inclusion in the budget setting process to support the Transformation Fund, to help deliver the Balancing the Budget Target, as set out in Paragraph 4.8.3 of the report.

7. That a Balancing the Budget Target of £3.2Million (of which £1.23Million relates to 2024/25) be approved for the period 2024/25 – 2026/27, as set out in Section 4.9 of the report.

8. That General Fund growth be only approved for the Council’s FTFC priorities and the growth allowance included in the 2024/25 budget be £75,000. Growth above that level will need to be funded by further savings in addition to the £3.2Million target identified.

9. That a minimum level of balances for the General Fund of £3.50Million be approved for 2023/24, as set out in Paragraph 4.10.8 of the report.

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

11. 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.

Reason for Decision: As contained in report.

Other Options considered: As contained in report.

The Executive considered a report in respect of an update on the General Fund Medium Term Financial Strategy 2023/24 – 2027/28.

In the absence of the Portfolio Holder for Resources and Transformation, the Portfolio Holder for Housing and Housing Development advised that the report identified the level of medium term inflation and other pressures for the General Fund and the consequently £3.2Million amount of ‘balancing the budget savings’ required for the three year period between 2024/25 - 2026/27. The MTFS identified the need for £1.23Million to be found through a combination of savings, efficiencies, new surplus income and transformation in 2024/25.

The Portfolio Holder for Housing and Housing Development stated that the Council’s inflationary pressures were projected to be £1.4Million next year before the other cost increases which were set out in the report. Increases in Council Tax and core resources were predicted to be £367,000, highlighting the reason why councils across the country had to continue to find innovative ways to balance their budgets.

The Portfolio Holder for Housing and Housing Development explained that Minimum risk assessed balances for 2024/25 were estimated to be £3.5Million. The projected year end balance for 2024/25 was estimated to be £4.3Million which was above the minimum amount required. This would result in a £310,000 draw on general reserves, with an additional £1.941Million of allocated reserves available.

The Portfolio Holder for Housing and Housing Development referred to a specific recommendation in the report to permit officers to commit to underwrite the detailed design stage (known as RIBA Stage 3) to enable final design and construction pricing for the Swingate site (Plot A), ahead of entering into the joint venture with Mace and the subsequent start on site within 2023/24.

The Strategic Director (CF) drew attention to the increasing number of Section 114 Notices being issued to local authorities across the country, which emphasised the difficulties being experienced by councils in balancing their budgets. It was fortunate that SBC was not in a Section 114 position, although the identification of savings and efficiencies continued to be challenging year on year.