Issue - meetings

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

Cabinet members:

(a)           Noted the updated cost pressures set out in the paper and the validation work that had been carried out on them

(b)           Agreed the assumptions being used in the Medium-Term Financial Plan (MTFP);

(c)           Noted the financial gap arising from (i) and (ii) above;

(d)           Agreed the 2022/23 draft principles for budget setting;

(e)           Noted the approach to closing the budget gap that was set out in the paper, recognising that this was work in progress;

(f)             Agreed that Portfolio Holders work with officers to continue to identify and develop savings opportunities;

(g)           Noted the emerging national context set out in this paper;

(h)           Endorsed the next steps and timetable leading up to the 2022/23 budget being presented to full Council on 15 February 2022.

Reason to note and receive the report

This paper was presented to Cabinet to provide an update on the budget gap for 2022/23 and the subsequent years of the MTFP and to update on progress on action/savings to date.

Cabinet considered a report which showed the work that was being carried out to prepare for setting a budget for 2022/23 and looked forward to the Medium Financial Plan for 2023/27. The Portfolio Holder for Finance, Commercial and Capital Strategy highlighted: -

·      That there was a predicted deficit of more than 8million pounds. A detailed update would be provided to members in the quarter 2 report to the November Cabinet meeting.

·      He highlighted the significant challenges around increase in costs and demand, and the significant impact on the council tax and business rates collections fund.

·      The directorate planning assumptions (which cabinet was requested to consider) were set out in 13.1 of the report.

·      That the transformation “spend to save” programme must continue, plus considerations on how the council could raise income in the future.

·      He stressed that the council was underfunded compared to other councils of a similar size.

The Leader of the Council advised and set out the long lead-in process of the budget setting programme (including the “all member” budget café) to develop a balanced budget for 2023-24. Details would be shared with members shortly. In response to question the Chief Executive assured members that scrutiny committees would be part of that process.

The Portfolio Holder referred the Cabinet members to the recommendations set out in the report, which, at this stage, primarily asked the committee to note the situation and budget setting timetable.

 Cabinet members:

(a)           Noted the updated cost pressures set out in the paper and the validation work that had been carried out on them

(b)           Agreed the assumptions being used in the Medium-Term Financial Plan (MTFP);

(c)           Noted the financial gap arising from (i) and (ii) above.

(d)           Agreed the 2022/23 draft principles for budget setting.

(e)           Noted the approach to closing the budget gap that was set out in the paper, recognising that this was work in progress.

(f)             Agreed that Portfolio Holders work with officers to continue to identify and develop savings opportunities.

(g)           Noted the emerging national context set out in this paper.

(h)           Endorsed the next steps and timetable leading up to the 2022/23 budget being presented to full Council on 15 February 2022.

Reason to note and receive the report

This paper was presented to Cabinet to provide an update on the budget gap for 2022/23 and the subsequent years of the MTFP and to update on progress on action/savings to date.