Issue - meetings

A report seeking agreement to the financial framework for the 2023/24 MTFS refresh, including the agreement to the key strategic principles and areas of activity required.

Portfolio Holder - Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader, Finance and Property) explained that the report summarised the emerging financial picture, strategic principles and refresh proposals and timescales for the 2023/24 budget setting and the five-year Medium Term Financial Strategy (MTFS) refresh to 2027/28.  Councillor Butlin drew attention to the six key principles, set out in the report, that would inform the MTFS refresh.  He noted that inflation considerations, and the impact of this on both revenue and capital, dominated the principles and, in making provision for the impact of inflation, further prioritisation of resources would be required. 

Councillor Jerry Roodhouse welcomed the timing of the report and the clear guidance provided by the six principles.  He expressed concern about the impact of inflation, particularly regarding capital and capital projects, and expected to see some reprioritisation as a result.

In response to questions from Councillor Andy Crump regarding considerations around principle 2, relating to potential Council Tax incrases in light of increasing pressures on household budgets, Councillor Butlin advised that a cautious approach would be taken and, at this stage, he did not anticipate that Council Tax, which was subject to a ceiling set by central government, would increase above the levels set in the previous years’ budget.  In terms of planning assumptions, current projections suggested a £15m likely gap on the revenue budget across the five years of the MTFS, so Cabinet were being asked to support a £20m initial savings target for officers as a starting point.

Resolved that Cabinet:

1.     Notes the emerging financial position within which the 2023/24 budget and 2023-28 Medium Term Financial Strategy will be developed;

2.     Agrees the strategic principles that will form the basis of the Medium Term Financial Strategy, as set out in paragraph 2.4 of the report;

3.     Subject to the agreement of the principles, approves the proposals for the refresh of the 2023/24 Medium Term Financial Strategy and Capital Strategy, as set out in Sections 3 and 4 of the report ;

4.     Notes the requirement for the Authority to set a sustainable balanced budget which shows how income will equal spend over the short- and medium-term; and

5.     Approves the timetable for agreeing the 2023/24 budget and Medium Term Financial Strategy Refresh.