Issue - meetings

This report draws together a number of strands to consider when refreshing the MTFS. It also sets out the timetable for the setting of the 2022/23 budget.

Cabinet Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader, Finance and Property) told Cabinet that it is now time to begin to look at next year’s budget. The impact of the Pandemic means that a significant reconfiguration of the budget will be required. Pre-Covid the council was in a strong position having a balanced budget. However, pressures have built up and additional savings will now be required. In particular spending pressures exist around adult social care, SEND and children’s placements. One area of concern is the uncertainty around the post-pandemic picture and in particular around the funding that will be made available by government. Demand for certain services may increase following the pandemic but it is unclear where these might be or their extent.

Councillor John Holland (Leader of the Labour Group) expressed his concern over those services, many of which assist the most vulnerable, that are struggling to manage financially. He suggested that there is not enough money to go round. Councillor John Holland concluded by stating that whilst investment is to be welcomed there remain areas where cuts are being made and where the impacts will be felt in the longer term.

Referencing section 3.4 of the published report Councillor Sarah Feeney (Deputy Leader of the Labour Group) stated that the “right savings” should not impact on the most vulnerable.

Councillor Jerry Roodhouse agreed that it is what the council does not know that is a problem. Announcements are awaited from the Prime Minister and Chancellor of the Exchequer, but the picture will remain unclear for some while. Councillor Jerry Roodhouse proposed that a briefing be held for members in December 2021 concerning savings that will be required. Councillor Izzi Seccombe welcomed this suggestion adding that it could be done by groups taking account of the learning needs of new councillors in particular.

Councillor Peter Butlin agreed with previous speakers that the priority should be to look after the needs of the most vulnerable. He added that whilst savings figures of £20m-£30m are significant they need to be considered in relation to the council’s overall spending over the next five years. The tax base is growing, and the economy is showing signs of recovery. A three-year settlement would be useful to allow for longer term financial planning he concluded.

Resolved:

That Cabinet:

1)       Notes the emerging financial position within which the 2022/23 budget and 2022-27 Medium Term Financial Strategy will be developed;

2)       Agrees the proposals for the refresh of the 2022/23 MTFS and Capital Strategy, as set out in Sections 3 and 4;

3)       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

4)       Approves the timetable for agreeing the 2022/23 budget.