Agenda item

To consider Report No. FIN2411 (copy attached), which sets out an update on the key factors influencing the Council’s Medium Term Financial Strategy and the budget outturn in respect of 2023-24.

The Cabinet considered Report No. FIN2411, which set out the Medium Term Financial Strategy (MTFS) update 2023/24 Budget Outturn.

 

It was noted that Report No. FIN2411, had been the first opportunity for the Cabinet to review and comment on the Council finances and came with the advantage of full visibility of the underlying numbers and realistic assumptions. The Report contained a wealth of detail which set out the Council’s financial position, which required urgent attention and focus from the Council’s leadership.

 

The Cabinet were being asked to note much of the detail in the report, approve the proposals and make recommendations to the Council, but it was also noted that actions were in place to address the issues with a detailed action plan being drafted. The action plan, which would be closely monitored by the Leader, senior Councillors and the executive team, would include action to reduce the Council’s level of debt. Upgraded processes would also be put in place so that Members received transparent and insightful reporting of the Council’s financial plans, to enable them to fulfil their role of scrutiny.

 

During discussions the Cabinet noted the importance of monitoring risk and ensuring issues arising were addressed in a timely manner. With regard to savings, it was noted that impacts on services provided would be limited where possible.

 

The Cabinet

 

(i)              RECOMMENDED TO THE COUNCIL that approval be given to:

 

(a)            the approach and timetable to identifying the required revenue savings, as set out in Report FIN2411;

 

(b)            the use of capital receipts strategy, as set out in the Report;

 

(c)            the proposed reprofiling of the capital receipts income target and resulting £1.6m drawdown of reserves, as set out in the Report;

 

(ii)             RESOLVED that approval be given to:

 

(a)            the write-off of the commercial property lease debt described in Report No. FIN2411;

 

(b)            the 2023/24 reserve movements as represented by the transfers summarised in Report FIN2411, resulting in unaudited usable revenue reserves of £20.8m and a separate £2m working balance;

 

(c)            the proposed strategy to drawdown reserves to finance the projected deficit, as set out in Report FIN2411;

 

(d)            the establishment of a cross-party Cabinet Working Group to be known as the “Financial Recovery Working Group” with the primary role of overseeing delivery of the Financial Recovery Plan;

 

(iii)           NOTED -:

 

(a)            the 2023/24 unaudited budget outturn returning £1.245m surplus to reserves, which may change with further due diligence and audit, be updated at the October Council;

 

(b)            the revenue budget carry forward schedule and capital slippage, as set out in Report FIN2411;

 

(c)            the 2024/25 financial year review of performance against budget to date on key budget items, as set out in Report FIN2411, and that the Cabinet will receive a full in-year financial position in September;

 

(d)            the Section 151 Officer assessment that the minimum working balance of £2m remains adequate;

 

(e)            the sensitivity analysis of the budget deficit with respect to key assumptions and delivery of the savings plan;

 

(f)              the update to significant risks within the MTFS period;

 

(g)            the progress made to date on the financial resilience plan approved on 22 February and the CIPFA Financial Resilience Report;

 

(h)            the intention to address issues affecting the Council’s financial position raised by the MTFS update, the CIPFA Financial Resilience Report and the Peer Challenge through a new detailed “Financial Recovery Plan”;

 

(i)              that a further update would be provided to Cabinet in September and the Council in October.