Issue - meetings

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

(i)             That the national context and the headlines from the recent fiscal statement (the mini budget), as set out in the report, and its potential impact on this Council and its plans, be noted.

(ii)            That the updated cost pressures, as set out in the report and the validation work that has been carried out on them, be noted.

(iii)          That agrees/updates the assumptions being used in the Medium-Term Financial Plan (MTFP);

(iv)          That the financial gap arising from (ii) and (iii) above, be noted.

(v)           That the 2023/24 principles for budget setting be agreed.

(vi)          That the approach to closing the budget gap, as set out in the report, recognising that this is work in progress, be noted.

(vii)         That Portfolio Holders work with officers to continue to identify and develop further efficiencies and savings.

(viii)       That the next steps and timetable leading up to the 2023/24 budget being presented to full Council on 14 February 2023, be endorsed.

Reason for the decision

Councils are required by law to set a balanced budget. Essentially this means that expenditure is balanced by income without unsustainable use of one-off, or short-term sources of finance. This paper came to Cabinet to provide an update on the budget gap for 2023/24 and the subsequent years of the MTFP and to update on progress on action/savings to date including the 2022/23 forecast performance against budget.

The Portfolio Holder for Finance, Commercial & Capital Strategy presented a report that provided a framework for the budget for 2023/24 and the MTFP for 2023-2028. As part of his presentation, he set out the pressures on the council’s budget including the inflation rate and pay award. He continued by expressing his concerns around significant under funding for the council from central government.

In response to questions regarding financial stability, the Leader of the Council confirmed that many unitary and county councils nationally were facing multi-million budget gaps which largely existed due to inflation factors.

It was proposed by Cllr G Suttle seconded by Cllr A Parry.

Decision

(i)             That the national context and the headlines from the recent fiscal statement (the mini budget), as set out in the report, and its potential impact on this Council and its plans, be noted.

(ii)            That the updated cost pressures, as set out in the report and the validation work that has been carried out on them, be noted.

(iii)          That agrees/updates the assumptions being used in the Medium-Term Financial Plan (MTFP);

(iv)          That the financial gap arising from (ii) and (iii) above, be noted.

(v)           That the 2023/24 principles for budget setting be agreed.

(vi)          That the approach to closing the budget gap, as set out in the report, recognising that this is work in progress, be noted.

(vii)         That Portfolio Holders work with officers to continue to identify and develop further efficiencies and savings.

(viii)       That the next steps and timetable leading up to the 2023/24 budget being presented to full Council on 14 February 2023, be endorsed.

Reason for the decision

Councils are required by law to set a balanced budget. Essentially this means that expenditure is balanced by income without unsustainable use of one-off, or short-term sources of finance. This paper came to Cabinet to provide an update on the budget gap for 2023/24 and the subsequent years of the MTFP and to update on progress on action/savings to date including the 2022/23 forecast performance against budget.