Issue - meetings

The report was provided to update Cabinet on how the Council was performing against the approved 2022/23 – 2024/25 Medium Term Financial Strategy (MTFS) in the current financial year alongside setting out any new challenges that were emerging for the revised MTFS for 2023/24 – 2025/26.

The report provided Members with detail on:

·  The Medium-Term Financial Strategy (MTFS) latest financial position as at 31 December 2022 (Period 9). This was the same position being reported to individual Cabinet portfolio holders during February;

·  The latest Red, Amber and Green (RAG) ratings for the delivery of the (MTFS) savings 2022/23 to 2024/25, as detailed in Appendix A to the report;

·  Details of the budget movements which have taken place up to Period 9 of this financial year, as required by Financial Regulations, and the revised budget following those movements, as detailed in Appendix B, to the report which Members were asked to approve.

On receiving the report Members sought clarification on a number of points, which Officers provided

RESOLVED:

(i)  That the current financial position and actions being taken to address budget variances be noted;

(ii)  That the latest Red, Amber and Green (RAG) ratings for the delivery of the (MTFS) savings 2022/23 to 2024/25, as detailed in Appendix A, be noted;

(iii)  That the budget adjustments up to Period 9 of 2022/23 as summarised in Appendix B, be approved;

(iv)  That the use of the Budget Strategy Reserve to fund the additional cost of £2.888 million for the 2022/23 Pay Award as detailed in paragraph 3.11 of the report be approved;

(v)  That the use of the Budget Strategy Reserve to fund an increase of £1.015 million in the Impairment Allowance for doubtful debts as detailed in paragraph 3.12 of the report be approved;

(vi)  That the use of the Budget Strategy Reserve to balance the budget shortfall of £5.781 million in the Children and Education portfolio as detailed in paragraph 3.20 of the report be approved;

(vii)  That the use of £27,240 from the Commonwealth Games volunteers reserve in the Communities and Leisure Portfolio be approved to fund current Voluntary and Community Sector priorities as detailed in paragraph 3.25. of the report;

(viii)  That a contribution of £400,000 to the existing Family Hubs reserve to support development and roll out of the Family Hubs service in future years as set out in paragraph 3.27. of the report, be approved;

(ix)  That a contribution to the existing Leisure reserves of the year end surplus in relation to Commonwealth Games activities, currently forecast at £75,000, as set out in paragraph 3.28. of the report, be approved;

(x)  That a contribution of the year end surplus in relation to the Employment and Skills service, currently forecast at £87,000, to the existing Employment Learn and Engage reserve as set out in paragraph 3.29. of the report be approved; and

(xi)  That the creation of a new reserve for the Learning Disability Employment Support service be approved and that a contribution of the year end  ...  view the full minutes text for item 9

The purpose of the report is to:

o  to update Full Cabinet on how the Council is performing against the approved 2022/23 – 2024/25 Medium Term Financial Strategy (MTFS) in the current financial year alongside setting out any new challenges that are emerging for the revised MTFS for 2023/24 – 2025/26;

o  outline the Medium-Term Financial Strategy (MTFS) latest financial position as at 30 September 2022 (Period 6). This is the same position being reported to individual Cabinet portfolio holders during November;

o  report on the latest Red, Amber and Green (RAG) ratings for the delivery of the (MTFS) savings 2022/23 to 2024/25, as detailed in Appendix A; and

o  provide details of the budget movements which have taken place up to Period 6 of this financial year, as required by Financial Regulations, and the revised budget following those movements, as detailed in Appendix B, which Members are asked to approve.

The Cabinet received a report which:

·  updated Full Cabinet on how the Council was performing against the approved 2022/23 – 2024/25 Medium Term Financial Strategy (MTFS) in the current financial year alongside setting out any new challenges that were emerging for the revised MTFS for 2023/24 – 2025/26;

·  outlined the Medium-Term Financial Strategy (MTFS) latest financial position as at 30 September 2022 (Period 6). This was the same position being reported to individual Cabinet portfolio holders during November;

·  reported on the latest Red, Amber and Green (RAG) ratings for the delivery of the (MTFS) savings 2022/23 to 2024/25, as detailed in Appendix A; and

·  provided details of the budget movements which had taken place up to Period 6 of this financial year, as required by Financial Regulations, and the revised budget following those movements, as detailed in Appendix B, which Members were asked to approve.

Members were reminded that as reported in June 2022 the overall position at the end of 2021/22 was that, except for Children’s services, all portfolios were in an equivalent or better financial position as at 31 March 2022, than that assumed in the budget approved by Full Council in February 2022. In that same report, approval was sought to provide a further £1 million top up to reserves to support delivery of the Children’s Improvement Plan for 2022/23. The outlook for local government finance continued to worsen with a combination of existing and new, emerging service challenges and national pressures including:

·  The lasting effects of Covid-19, including the gradual recovery to pre-pandemic activity levels for some services and the transition to a “new normal”, with potentially permanent changes to activity levels, for others;

·  The ongoing delay to local government finance reform and associated uncertainty over future funding;

·  Significant cost of living impacts on pay, energy and contractual costs;

·  Children’s services – further pressures forecast in the current year and beyond; and

·  The reform of Adult Social Care including the outcome of the fair cost of care exercise.

The budget process for 2023/24 and beyond would be very challenging as the impact of inflationary pressures and demand for adults and children’s social care feed through into the budget process.

In year financial monitoring was detailed in Appendix A of the report. An adverse variance was forecast on the Core Council of £4.512 million in relation to the Children and Education portfolio and a forecast in-year adverse variance of £3.585 million for the Dedicated Schools Grant (DSG) totalling £8.097 million. The overall financial position was further detailed by Cabinet Portfolio in Appendix A (Table 2) which highlighted the key variances and a separate report on each portfolio position would be presented to individual Cabinet Decision Sessions during November.

The report went on to detail the Capital Forecast Outturn 2022/23, the Medium-Term Financial Strategy -RAG Status of Savings/Mitigations, Reserves, a Corporate Approach to Delivering an Asset Masterplan and Housing Revenue Account (HRA)- proposals to use reserves to support the Money Advice team.

On receiving the report Members  ...  view the full minutes text for item 5