Purpose

Cabinet is recommended to:
 

·        
note the potential funding gap in
2023/24 and the overall funding gap over the period the MTFS
covers.

·        
note the continuing uncertainty
resulting from likely delays to the Spending Review, Fair Funding
Review and Business Rates reset and the risk to future years
funding beyond the 2024/25 financial year

·        
note the outline timetable for the
budget process

·        
delegate to the Strategic Director of
Resources the authority to distribute any contingency budgets
and/or reserves as per the Council’s financial ground rules
which were reaffirmed within the Month 2 Finance Monitor approved
by executive decision in July 2022
 

Content

Cabinet:

(1)          
noted the potential funding
gap of £27.912 million for the 3-year period 2024/25 to
2026/27 with £12.242 million in 2024/25, assuming all
service-related pressures are resolved. The final position will not
be known until the provisional local government finance settlement
and final settlement are released.  The
provision settlement is expected in late December;

(2)          
noted the
requirement to achieve savings from management actions,
efficiencies and a transformation programme, to mitigate the
in-year baseline pressure reported in the month 7 monitor of
£15.882 million, the £3.065m staff pay deal (funded
from contingency), the potential funding gap for 2024/25 million of
£12.242 million and £15.670 million for 2025/26 and
2026/27;

(3)          
noted the MTFS refresh assumes a council tax
increase of 4.99% in 2024/25 which is subject to Council
approval;

(4)          
noted the
continuing uncertainty resulting from likely delays to the spending
review, Fair Funding Review and proposed changes to the Business
Rates Retention scheme;

(5)          
noted the
outline timetable for the budget process as set out in paragraph
3.29 of the report; and

(6)          
delegated to
the Strategic Director of Resources the authority to distribute any
contingency budgets and/or reserves as per the Council’s
financial ground rules which were reaffirmed within the Month 2
Finance Monitor.
 

OPTIONS & ALTERNATIVES CONSIDERED

The Council has a legal duty to set a balanced
budget and to develop a financial strategy for the medium
term.  The revised MTFS sets out
potential challenges facing the Council in future years.