Decision details

(Report of Director of Finance and Transformation)

An update was provided on the Medium Term Financial Strategy (MTFS) and the latest financial issues.  The savings that had been identified and would assist in meeting ‘tranche 1’ of the latest saving targets were also set out.  Cabinet was requested to consider and implement a programme for investigating and identifying the balance of the savings that were needed to ensure the financial sustainability of the Borough Council.

It was reported that an interim review of the funding gap, which represented new savings that needed to be identified and delivered, was now projected at between £2.6m and £3.8m, the savings target ‘tranche 1’ of £350k needed to be in place by April 2023; so far only  £164k of ‘tranche 1’ had been achieved and uncertainty regarding local government financial settlement, Fair Funding Review, negative RSG, New Homes Bonus cessation and Business Rates baseline reset made it difficult to assess the true position.

Particular reference was made to undertaking a review of the level of reserves and balances held for other specified purposes and whether there was potential for these to be added back into the general reserve to reduce the funding gap.

Careful consideration was given to the impact on the MTFS arising from the current global economic factors and increasing inflation and Cabinet had regard to the legal, financial and value for money implications, the assessment of risk and

RESOLVED:  That

(1)             the latest forecast of the Medium Term Financial Strategy and the funding gap, which was estimated to between £2.6m and £3.8m (as set out in 1.4.7) be noted;

(2)             the savings/transformation contributions for Tranche 1 totalling £164,300 (as set out in 1.5.3) together with the additional £50,000 generated through increases in Fees and Charges (D220097CAB refers) be noted;

(3)             for the reasons set out in 1.4.27 and 1.4.26 of the report, Management Team be requested to review the level of reserves and balances held for specified purposes in order to release any ‘surplus’ sums to the General Revenue Reserve; and

(4)             options to achieve savings/transformation contributions for future tranches, and how these could be implemented and actioned as soon as possible, be considered by the Finance, Regeneration and Property Scrutiny Select Committee at its meeting on 15 November 2022.