Issue - meetings

Budget strategy and medium-term financial plan (MTFP)

Meeting: 28/01/2025 - Cabinet (Item 109)

109 Budget strategy and medium-term financial plan (MTFP) PDF 1 MB

To consider a report of the Cabinet Member for Finance & Capital Strategy.

Additional documents:

Minutes:

The Cabinet Member for Finance and Capital Strategy presented the report setting out the proposals for Dorset Council’s 2025/26 revenue and Capital budgets including a summary of the Medium-Term Financial Plan (MTFP).

The report also included the Capital Strategy and the Treasury Management Strategy for approval.

In setting the budget the Council was facing rising costs in service delivery of £85m, which had been met through identifying £44.6m of savings, efficiencies, grants and income and £40.5m of increased funding, mostly through changes in council tax. In summing up his presentation the Cabinet Member for Finance and Capital Strategy indicated that the council continued to experience significant financial pressures and cabinet members would continue to lobby for fair funding for Dorset.

Non-Cabinet members asked several questions around parking charges and the Cabinet Member for Place Services confirmed that a further car parking review would be taking place within the next 12 months. Responding to questions regarding council housing stock, the Cabinet Member for Health and Housing advised that Cllr O’Leary had received an open invitation to attend the Housing Working Group, and a detailed report on “New models of housing delivery” would be presented to Cabinet and Full Council in the Spring.

In respect of a question relating to core assumptions, the Executive Director, Corporate Development highlighted some of the key assumptions and best estimates made against current information, as set out in 11. 2 of the report and he confirmed that a contingency fund of £13m was set aside to take account of these variables. In respect of the general grant fund, members were informed that this was the first time there was a budget line for the “Cost of Living” aimed to support the voluntary sector’s preventative work and a report on progress would come forward to a scrutiny committee in the near future.

The Cabinet Member for Finance and Capital Strategy proposed the recommendation as set out in the report, with the additional addendum of appendix 8(b) to replace the original appendix. This was seconded by Cllr N Ireland

Recommendation to Full Council

(a) That the revenue budget summarised in Appendix 1, be agreed.

(b) That the increase in general Council Tax of 2.9953% and 1.9969% in the Social Care Precept, providing a Band D Council Tax figure for Dorset Council of £2,101.05; an overall increase of 4.9921%, be agreed

(c) That the Council Tax base of 160,793 Band D equivalents (186,917 households in total) agreed by the S151 Officer earlier in this budget setting process, be noted.

(d) That the continuation of the unchanged scheme of Local Council Tax Support, and the revised income tables following the Department for Work and Pensions (DWP) uplift of benefits by 1.7%, be noted.

(e) That the Capital Strategy set out in Appendix 3 and the changes to the programme contained within the appendix, be approved.

(f) That the Treasury Management Strategy set out in Appendix 4 be agreed.

(g) That the assumptions used to develop the Budget Strategy and Medium-Term ... view the full minutes text for item 109

Meeting: 16/01/2025 - People and Health Scrutiny Committee (Item 42)

42 Budget and Medium-Term Financial Plan (MTFP) Strategy Report PDF 139 KB

To consider a report by the Corporate Director – Finance and Commercial.

Additional documents:

Minutes:

The Executive Director for Corporate Development (Section 151 Officer) and the Corporate Director for Finance and Commercial introduced the budget and Medium-Term Financial Plan (MTFP) report. They gave a presentation which summarised the budget and the increase in the base budget for each service, as well as the high-risk service pressures, and the numbers of children in care and how it influences spend. The presentation is attached as an appendix to these minutes.

The committee discussed the overall budget position and the budgets for Children’s Services, Adults and Housing, and Public Health. Non-committee members were also given the opportunity to ask questions. During the discussion, the following key points were raised:

· There was an average uplift for fees and charges of 2.5%. Clarification was needed how these were put into directorates and that the committee needed more detail on fees and charges in future years. Officers responded that the list of fees and charges would be available in the Full Council report and that fees and charges were either set by government or by the council based on the market.

· The council not being able to meet savings and transformation targets this year and that they must be met next year to ensure the council’s budget was not affected and transformational savings were achieved.

· One of the principal pressures was high-cost placements. It was important the council was able to provide bespoke packages for each child and being able to provide all options for children in care so the council does not have to commission high-cost packages. Members asked how the local market was being developed to reduce high-cost pressures.

· The 50% reduction in funding for the Dorset Education Board was a concern given the educational achievement levels in the county. The Corporate Director for Education responded to this concern giving assurance and the reason the saving.

· Consideration should be given to the Birth to Settled Adulthood programme having a combined budget between Children’s Services, Adults and Health. This could be explored further through the committee’s work programme.

· How the council was promoting that people can purchase their own home care through the council and whether an investment was needed in marketing for this, and could it help with the local market. Officers responded that more work was needed to promote the service, however if the number of clients increased quickly, it could put pressures elsewhere.

· Shared Lives should be added to the committee’s work programme to review the development of the service and its transfer to Care Dorset.

· What were the confidence levels in being able to eliminate the use of B&B’s for temporary accommodation. The Corporate Director for Housing explained that it was an achievable target and that a plan to eliminate B&B accommodation use was being developed through a delivery paper which would be considered by the People & Health Overview Committee.

· What was the financial impact of separating joint funding for Public Health. The Executive Director for Corporate Development responded that public health disaggregation was ... view the full minutes text for item 42