Issue - meetings

This report makes available the latest financial information that will enable Cabinet to develop its draft 2023/24 Budget and 2023-2028 Medium Term Financial Strategy proposals

Cabinet Portfolio Holder - Councillor Peter Butlin

Councillor Peter Butlin, Portfolio Holder for Finance and Property explained that this was the opening detail for the MTFS as provided by Corporate Board which set out the options available to Cabinet and the other groups during their budget preparation.  Referring to previous meetings when he had outlined the various pressures facing the Council, Councillor Butlin explained that the demand for services in Children’s Services, SEND, and Home to School Transport continued to exceed budgeted financial resources.  Despite this, the Council was considered a well-run authority which made the right decisions at the right time and this would be reflected in each group’s budget proposals to Council in February 2024. 

Councillor Butlin noted that there had been lobbying regarding the level of government funding by the Local Government Association, County Councils Network and all Cabinet Members had written to government ministers on the issue, but the Chancellor’s autumn statement had not made any increased funding available to local government and the higher-than-expected increase in the National Living Wage had actually added a further burden of nearly £3.5m to the cost pressures faced by the Council. 

Unlike previous years, there was therefore little flexibility in the setting of a budget for 2024/25 and Corporate Board were suggesting the need to set Council Tax at a minimum level of 4.92%. The Office for Budgetary Responsibility forecasts also suggested council tax headroom of 3% core and 2% adult social care levy across all years, but government officials had made it clear that this could not be guaranteed due to national elections in 2024.

Councillor Jerry Roodhouse commented on the challenging set of papers before the Cabinet and considered that the political groups would need to work more closely together to benefit the residents of Warwickshire.

Councillor John Holland lamented the lack of protection for local government in the Chancellor’s autumn statement. 

Councillor Isobel Seccombe considered that this was a challenging budget period for the Council despite its good financial management practices and thanked the Finance Team for their work to date.

Councillor Butlin advised that the final Local Government Settlement was expected in the week following the meeting, but additional funding was not expected, and he suggested that the final position would reflect the paper that was before the Cabinet at this meeting.  

Resolved

That Cabinet

1.        Agrees to develop its draft 2024/25 Budget and 2024-29 Medium Term Financial Strategy proposals, taking into account the information and advice of presented in the report; and

2.        Authorises Corporate Board to begin any preparatory work necessary to deliver the budget proposals, prior to the final decision on the budget on 8 February 2024.