Issue - meetings

Reporting Person – Leigh Clarke

Councillor Roberts, Portfolio Holder for Finance, introduced the report which provided an update on the Medium Term Financial Strategy and approach to financial resilience work required to set the 2023/24 budget.  Following updates received by the Executive in November and December 2022, Councillor Roberts reported that work on stabilising reserves and identifying cost savings was progressing.  The Executive was informed that the analysis undertaken to date should enable a budget to be set for 2023/24.  Councillor Roberts stressed that this would involve a significant spending reduction.  In addition, if the Council’s assessment of a more prudent provision for its borrowing was necessary then it would likely be unsustainable within the General Fund budget.

The Executive heard that budget workshops with Senior Managers had been taking place and Senior Managers were thanked for their approach to the budget review work.  It was noted that the Council would continue to work with independent advisors.  It was reported that Corporate Leadership Team would be meeting the Government (DLUHC) Rapid Review team the following week.  Further updates on the DLUHC review would be provided to Members as work progressed.

Discussion ensued on Minimum Revenue Provision (MRP) and it was noted that the MRP policy was a Council approved policy.  Officers advised that guidance on MRP had changed in recent years.  It was noted that there was a significant risk that a more prudent assessment of MRP provision should be adopted, as well as a more prudent provision for impairment of capital loans.

Following a question regarding outstanding audits of Council accounts, the Leader advised that the matter had been escalated by the Chief Executive and a meeting was scheduled next week with the auditors.

The Executive noted the immediate actions taken by the Council to mitigate cost pressures going forward which included the introduction of cost controls, Fit for the Future Savings, review of Thameswey Business Plans, and review of forecast assumptions.

RESOLVED

That  (i)    the update to the Medium Term Financial Strategy be noted: and

          (ii)   the approach to operational savings through cost controls, set out in Section 6 of the report, be noted.

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