Issue - meetings

Reporting Person – Stephen Fitzgerald

Councillor Roberts, Portfolio Holder for Finance, introduced the report which established a Medium Term Financial Strategy (MTFS) for the years 2024-25 to 2028-29 covering General Revenue budget, the Housing Revenue Account (HRA) and capital budget.  The Portfolio Holder advised that the report was important for developing the financial strategy for the next four years and provided the framework for the work required to prepare for the 2025-26 budget setting.

The Executive was informed that the MTFS set out an approach to deal with two ongoing challenges; the funding gap and the legacy debt.  It was noted that, with regard to the £4m funding gap in 2024-25, the Council would continue its work to live within its means and to develop a ‘Right Sized Council budget’.  The MTFS proposed a strategic approach to address the funding gap by identifying four cross-cutting/strategic workstreams; property, hidden subsidy, procurement, and transformation.  Regarding the legacy debt of £2.1bn faced by the Council, the Portfolio Holder reported that the Council would require exceptional financial support until a permanent solution was agreed with the new Government.  The Council would continue to work with the Government to develop a longer term solution to the legacy debt challenge.

Regarding the HRA budget, it was noted that HRA reserves had fallen below desirable levels and budget monitoring forecasts indicated further pressures.  The Executive heard that a 30 year business plan was being prepared to inform a strategy to deliver sustainable HRA finances whilst improving the standard of decent and safe homes for residents.  The Executive welcomed work taking place in relation to historic General Fund recharges which could improve HRA balances brought forward.

Following a question regarding whether the Council would be issued with further S114 Notices, the Executive was informed that the Chief Finance Officer would only issue a S114 Notice if it was unavoidable and would be used as a last resort.  Officers advised that the Council was putting in place the necessary processes however further S114 Notices would be issued if deemed necessary.

The Executive thanked the Finance Team for its work on the MTFS which provided a practical approach to financial resilience for Woking, noting that the Council still faced difficult decisions in the future.

RESOLVED

That the report be approved as the financial strategy for the next four years, and the framework leading to budget setting for 2025-26.

Reason:   The contents of the report are to ensure open and transparent governance in the financial affairs of the Council by setting a financial strategy for the years 2024-25 to 2028-29.