Issue - meetings

Reporting Person – Leigh Clarke

Following the Medium Term Financial Strategy (MTFS) update provided to the Executive at its meeting on 17 November 2022, the Executive received a further report which set out the actions which needed to be taken for the Finance Director (Section 151 Officer) to be able to provide the necessary statement on the robustness of the budget estimates and adequacy of reserves to set the 2023/24 budget in February 2023.  Councillor Barker highlighted that the Council was in Operation Recovery as it sought to secure a balanced budget.  Councillor Roberts, Portfolio Holder for Finance, outlined the serious financial position of the Council and informed the Executive that a fundamental review of the Council’s budget was required to rebalance service costs within the resources now available post Covid.  The report also recommended actions targeted at delivering greater financial resilience, namely actions to identify funds to increase the level of reserves in order to give the Council more time to deliver savings that were sustainable.  Councillor Roberts advised that without further action, the Council’s expenditure could exceed the resources the Council had at its disposal.

The Executive was advised that an additional MTFS report would be received at its meeting on 19 January 2023.  It was proposed that a meeting of Council would be arranged on 23 February 2023 to receive the budget papers.

Attention was drawn to the Draft Strategic Risk Register which identified the risk of not being able to set a balanced budget as the most significant risk to the Council.  The Executive noted that difficult decisions would need to be taken, and that it would be important to protect and prioritise services directed at the Borough’s most vulnerable residents.

Councillor Davis, Shadow Finance Portfolio Holder, raised a number of points regarding the report, including tax implications in relation to commercial property transfer, the release of development income to revenue, the process for undertaking service reviews, the need to retain staff, and the increase in the Council’s senior leadership budget over the past three years.  Councillor Barker responded to the points raised.  Officers were asked to look into the budget figures for senior leadership and provide a response to Councillor Davis outside of the meeting.  The need to invest in qualified staff in order to realise the full potential of Council assets was highlighted.

RESOLVEd

That the update to the Medium Term Financial Strategy (MTFS), including the actions detailed in Sections 4 and 5 of the report, be noted.

Reason:   The decision is sought to develop further proposals to ensure the medium-term financial stability of the Council.