Purpose

To consider the report of the Cabinet Member
for Finance and Change providing details of the Medium Term
Financial Strategy Update.

Decision

General Fund -
Revenue
It is recommended that Cabinet:
 
i) 
Notes the updated budget position and MTFS forecast.
ii) 
Notes the content of the draft CIPFA Review report at Appendix 1
and the further work that CIPFA are undertaking to support the
council in improving its financial position.
iii) 
Notes the approach as outlined in the Financial Strategy set out
below (paras 24 to 31)
iv) 
Notes and endorses the setting up of a voluntary improvement board
as outlined in paragraph 29.
v) 
Notes and endorses a move to ‘cash limited’ budgets for
each service, which is intended to reinforce accountability and
control. See paragraphs 49 to 54 on how this will operate.
vi) 
Notes the Reserves Policy at Appendix 4.
vii) 
Notes and endorses the parameters for the fees & charges policy
as set out in paragraphs 69 to 79.
viii) 
Notes and endorses the in-year budget cost control measures, which
are mitigation to ensure the council lives within its agreed budget
for 2023/24 attached at Appendix 6. 
ix) 
Notes the content of the procurement strategy and procurement
forward programme 2023-25 contained at paragraph 108, appendix 7
and annex 7.1.
x) 
Notes the proposed revisions to the Financial Procedure Rules as
described in paragraphs 54 and 113 to 117, and set out in detail at
Appendix 9 and subject to any comments and changes once this change
has been considered at Governance Committee.
xi) 
Notes the delegation sought to provide authority to the Executive
Director Corporate Services (S151 Officer) following consultation
with the relevant Cabinet Member to accept Health Determinants
Research Collaboration funding and approve spend in the event the
funding is received (see paragraphs 99 to 102).
 
Housing Revenue
Account
It is recommended that Cabinet:
 
xii)   Notes the budget pressures
facing the Housing Revenue Account and the measures being
considered to mitigate these set out in Appendix 12.
xiii)   Notes the approach to recovering
costs of the Landlord Controlled Heating Account as set out in
paragraphs 123 to 130 and specifically option 2 of a phased
increase over five years.
 
Capital
Programme
It is recommended that Cabinet:
 
xiv) 
Notes and endorses the creation of a new Strategic Capital Board
(paragraph 114), with its terms of reference given in Appendix
8.
xv) 
Applies an indicator limit of no more than 11% for the ratio of
capital financing to the Net Revenue Budget of the council for the
General Fund. This is a key Prudential Indicator which will limit
the scale of the capital programme’s impact on the revenue
budget (see paras 42 and 45).
xvi) 
Notes and endorses the in-year budget adjustments to the General
Fund capital programme, as detailed in paragraph 117.
xvi) 
Notes and endorses the aim of reviewing the whole capital programme
against the criteria of Purposeful Investment (see paragraphs 30
and 113-117).
xviii) 
Notes the plans for transformation and notes the delegation to the
Executive Director Corporate Services to apply, following
consultation with the Cabinet member for Finance and Change and
subject to a business case, capital receipts to the transformation
programme in line with the strategy agreed at the February 2023
Council meeting. The current balance held on capital receipts is
around £2.8M.