Agenda item

Report from the Strategic Director for Finance and Customer Services.

Recommendations:

1.    That the MTFS update be noted.

2.    That Cabinet note the requirement to use reserves in order to balance the Council’s outturn position for 2022/23.

Consideration was given to the report which set out a review and update of the Council’s Medium Term Financial Strategy (MTFS) to 2025/26. The MTFS would be revised further in advance of the Council Budget setting meeting in March 2023, to take account of the Local Government Finance Settlement for 2023/24, when issued, along with budget policy proposals on levels of council tax and fees and charges and any budget savings or investments.

The MTFS forecast identify that the Council faced a significant financial challenge in setting a balanced budget for 2023/24 through to 2025/26 due to pressures outside of the Council’s control. Therefore, it was expected that additional use of reserves would be required for 2022/23 and likely for 2023/24. This position was subject to review when the Finance Settlement for 2023/24 was received though there remained substantial uncertainty with the UK economy and the levels of public sector financing that were expected within the Finance Settlement for 2023/24.

It was, therefore, possible that announcements made by Government on the 17th November, 2022, or within the subsequent Finance Settlement for 2023/24 could add further financial pressures to the Council’s MTFS position, either through Government not inflating public sector resources as assumed or through other cuts to public sector funding.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process. The Board fully supported the recommendations.

Resolved:

1.    That the MTFS update be noted.

2.    That Cabinet note the requirement to use reserves in order to balance the Council’s outturn position for 2022/23.