Issue - meetings

The Executive Member for Finance and Governance.

RESOLVED:

That the Executive:

1.     Adopt the Medium-Term Financial Plan as the framework for the budget elements of Service and Financial Planning for 2023/24 onwards.

Councillor Schofield, Deputy Leader and Executive Member for Finance and Governance, gave an update on the Medium Term Financial Plan (MTFP) The report to Executive set out the detailed initial assessment of the key information that will be used for budget setting in 2023/24 onwards. This included a five-year forecast for the budget gap if action was not taken to reduce costs or increase income.

A Financial Sustainability Programme to deliver cost reduction and income generation initiatives over the coming years was underway. Detailed budget proposals for the coming year were due to be considered by Executive in November.

Members of the Overview and Scrutiny Committee had considered the report on the Medium Term Financial Plan and the options for addressing the forecast revenue budget challenges in 2023/24 onwards at its meeting on 14 July 2022. 

There were no questions from Executive Members.

Councillor Harrison, Chair of Overview and Scrutiny Committee, gave an overview of the Committee’s observations to Executive. The draft Minute from Overview and Scrutiny Committee (14 July) and written responses to questions raised at that meeting was published as an Addendum to the published agenda pack on the Executive meeting web page.

Councillor Harrison noted that the figures were provisional. He referred to the report which indicated that the draft budget gap was predicted to be around £2m next year and he referenced the current use of reserves. A key factor was recouping income losses incurred during the COVID-19 pandemic, including predicted loss of car parking income of around £1.1m. Rising inflation rates (at 9.1% as at July 2022), set out in the Medium Term Financial Plan report, were raised.  It was noted that MTFP forecasts do not include provision for general price inflation.

Councillor Harrison noted assumptions on 2023/24 forecast increase to salaries and set out in a written answer to O&S questions - with an allocation to fund contractual pay increases and an allowance for an annual pay award. The Local Council Tax Support Scheme Review and policy changes was also under review.

Deputy Leader and Executive Member, Councillor Schofield, said that inflation rates affected a number of services and purchasing areas. Business cases for budget growth and specific contract price increases will be considered when the draft budget for 2023/24 is prepared in the autumn. This included assumptions about setting Council Tax rates for 2023/24 and the following years.

Visiting Member, Councillor Essex, raised questions about the environmental sustainability plan and the need to invest to deliver on the Council’s commitments in next year and future budgets. Two main areas were managing carbon reduction in the Council’s buildings as well as efficiencies in the fleet budget and transport costs. Councillor Schofield explained that investment in fleet replacement is planned on a rolling replacement basis and the fleet manager is working with the environmental sustainability team to investigate alternative-fuelled vehicles.

Frank Etheridge, Strategic Head of Neighbourhood Services, confirmed that a trial of an electric single-bodied Refuse Collection Vehicle was due to take place in  ...  view the full minutes text for item 17