Agenda item

Report from the Strategic Director for Finance and Customer Services.

Recommendations

1.    That the MTFS update is noted.

2.    That the proposals to reserve funding and savings from 2021/22 to support the budget across the medium term are supported.

3.    That finalisation of the Budget for 2022/23 and MTFS to 2025/26 maintains the approved Budget Strategy.

4.    That Cabinet agree to the carry forward of any remaining budget for 2021/22 revenue budget investments into 2022/23 to allow for those investment to be completed.

5.    That Cabinet note the delegated officer decision on use of CCG funds as set out in paragraphs 2.37 – 2.39.

6.    That the authority to complete an agreement with the DfE within the DSG Safety Valve Intervention Programme is delegated to the Strategic Director – Children & Young People’s Services, in consultation with the Cabinet Member, the Chief Executive and the Strategic Director – Finance & Customer Services 

Consideration was given to the report which, following the release of the Government’s Spending Review 2021, set out in detail the review and update of the Council’s Medium Term Financial Strategy to 2025/26. The MTFS would be revised further in advance of the Council Budget setting meeting in March 2022 to take account of the Local Government Finance Settlement for 2022/23 when issued, along with budget policy proposals on levels of Council Tax and fees and charges and any budget investment.

The MTFS review, alongside the latest Financial Monitoring 2021/22 report which was presented to Cabinet in November 2021, envisaged a balanced financial outturn position being achieved for 2021/22. It also made recommendations on reserving funds and savings from 2021/22 in order to support the budget over the medium term.

The MTFS forecasts identified that a balanced budget for 2022/23 could be set with a small funding gap for the following two years. That position would be subject to review when the Finance Settlement for 2022/23 was received.

It was noted at the meeting that the provisional settlement announcement that had been made in the week prior to the Cabinet meeting did not significantly alter the financial position of the Council. More funding than expected had been announced in relation to the New Homes Bonus but this would be offset by the higher than expected rise in inflation. The announcement in relation to the Public Health Settlement was still pending. It was confirmed that everything would be reviewed as part of the budget setting process.

It was also reported that the Council’s collection rates for Council Tax and business rates were ranked fifth and second out of all Metropolitan Councils in 2021/22.

It was recommended that Cabinet agree to carry forward any remaining budget for 2021/22 revenue budget investment into 2022/23 to allow for the completion of those investments with the full twelve months of funding.

Rotherham MBC had been invited to work with the Department for Education as part of the Safety Valve Intervention Programme which provided support to local authorities with large DSG deficits. The aim of the work was to achieve a mutually agreeable solution to eliminating the Council’s DSG deficit and to secure a more sustainable DSG position going forward. A proposal had to be submitted to the DfE by 7th December, 2022, however, an agreement with the DfE would need to be signed in early 2022 so that any additional grant payments could be made by Government in March 2022. The authority to complete the agreement would be delegated to the Strategic Director of Children and Young People’s Services in consultation with the Cabinet Member, Chief Executive and Strategic Director of Finance and Customer Services.

The Leader noted the difficulty in financial forecasting due to the uncertainty caused by the COVID-19 pandemic.

This report had been selected for pre-decision scrutiny by the Overview and Scrutiny Management Board held on 15 December 2021. All of the recommendations were fully supported.

Resolved:

1.    That the MTFS update is noted;

2.    That the proposals to reserve funding and savings from 2021/22 to support the budget across the medium term are supported;

3.    That finalisation of the Budget for 2022/23 and the MTFS to 2025/26 maintains the approved Budget Strategy;

4.    That it is agreed that any remaining budget for 2021/22 revenue budget investments into 2022/23 to allow for those investment to be completed is carried forward;

5.    That the delegated officer decision on the use off CCG funds as set out in paragraphs 2.37 and 2.39 on the report are noted; and

6.    That the authority to complete an agreement with the DfE within the DSG Safety Valve Intervention Programme is delegated to the Strategic Director – Children & Young People’s Services, in consultation with the Cabinet Member, the Chief Executive and the Strategic Director – Finance and Customer Services.