Issue - items at meetings - Medium Term Financial Plan (MTFP) mid-year review

This report outlines the latest projections for the MTFP. It highlights the emerging pressures on the General Fund Revenue budget which have been identified at the time of writing and estimates their financial impact on the Council’s services and finances.

This report is authored in the context of extraordinary economic uncertainty, volatility. The risks facing the General Fund finances (to the extent that they’ve been identified) are presented to alert members to further threats to achieving the MTFP. For completeness, it should also be noted that, while the scope of this report doesn’t extend to either the HRA or the Council’s corporate “capital” projects these are subject to the same economic factors and are being monitored separately.

This report contains the following Annexes:

· Annexe 1 – Q2 Performance Summary

· Annexe 2 – Inflation Position Statement

· Annexe 3 – Updated General Fund MTFP

Recommendation

That the Executive:

i. note the 2022/23 forecast position General Fund

ii. note the emerging pressures and risks set out in the report

iii. note the position regarding the General Fund capital programme and individual capital projects

RESOLVED that

1. the 2022/23 forecast position General Fund be noted;

2. the emerging pressures and risks set out in the report be noted; and

3. the position regarding the General Fund capital programme and individual capital projects be noted.

Reason:

The annual General Fund budget is a major decision for the Council and setting a balanced budget is a statutory requirement. The worsening economic climate necessitates a review of the MTFP in the light of its financial impacts on the council: the Council must act quickly to ensure the risk of a net budget shortfall is addressed so that the Council can continue to function.

This report follows up on actions identified in the outturn report agreed by Executive in July. Scrutiny of this MTFP through a Mid-Year Review demonstrates transparency and good governance.

[This report is for noting and therefore not subject to call-in]

Councillor Merryweather, Portfolio Holder for Finance, Commercial and Assets presented the report which set out the current position with the General Fund and the result of the Medium Term Financial Plan mid-year review. The report was presented in the context of the financial pressures on the Council and the financial projections had been updated to reflect the rises in inflation. The Council had limited ability to increase income and therefore the Council had to choose whether to cut services or pass the cost on to residents. It was noted that the Government had increased the amount by which local authorities could raise council tax, however what was needed was a fully funded financial settlement from the Government.

The Leader thanked the officers involved and urged the Government to provide local authorities with financial certainty. Councillor Mulliner spoke on this item, expressing concern over the question marks in the report and seeking clarification on the impact of energy costs on leisure centres. In response, Councillor Merryweather agreed that the uncertainty was not helpful and looked forward to receiving clarification from the Government.