Issue - meetings

Medium-Term Financial Strategy Update and Savings Strategy

Meeting: 13/07/2023 - Council (Item 163)

Medium-Term Financial Strategy Update and Savings Strategy

To consider the report of the Interim Chief Finance Officer, (copy enclosed).

Additional documents:

Minutes:

The Council considered the report of the Interim Chief Finance Officer updating Members on the revised Medium-Term Financial Strategy (MTFS) position and setting out the need to identify a Savings Strategy to address the budget gap.

 

The report provided background information regarding approval of the Council’s budget and MTFS assumptions for 2023 / 24.  Updated forecasts for the periods 2023 / 24 – 2025 / 26 were also set out within the report.  It was noted that urgent work to identify a Savings Strategy was required to address the projected budget gap.  Members were advised that the Finance Working Group would be tasked with leading this work and making clear recommendations to the Strategy and Resources Committee / the Council for agreement.

 

The Interim Chief Finance Officer presented the report and highlighted paragraph 3.11 of the report emphasising the need for the Council to identify a savings strategy and set out clear recommendations which would address the budget gap.

 

The Chairperson put the recommendations as set out in the report and these were duly seconded.

 

In response to questions raised during the debate, Members were provided with the following additional information:

 

·                Officers were looking at statutory and non-statutory services and the related costs and would be taken to the Finance Working Group at the earliest opportunity for consideration.

 

·                Although the interest rate income had contributed towards the position reported for the financial year 2022 / 23 interest rates had been high as a result of high inflation rates which had significantly contributed to the cost pressures that the Council faced.

 

·                Local Government authorities were not the subject of and therefore not directly impacted by the recently agreed the public sector pay increase.

 

The Chairperson moved the recommendations which were duly agreed.

 

RESOLVED

 

(i)             That the revised Medium-Term Financial Strategy position be noted;

 

(ii)            That the requirement to urgently identify a Savings Strategy to address the budget gap be agreed.