Decision details

To provide an update to the Draft Budget and Medium Term Financial Strategy (MTFS) 2023-2024 to 2025-2026; and agree the next steps that will be taken in order to address the financial pressures faced by the Council over the medium term.

1.      That the draft budget strategy and medium term financial strategy which underpin Our City, Our Plan, including changes to corporate resource assumptions, growth and inflation and budget reduction and income generation proposals be approved.

2.      That authority be delegated to the Cabinet Member for Resources and Digital City, and the Cabinet Member for Education, Skills and Work, in consultation with the Director of Finance and the Executive Director of Families, to approve changes to the local funding formula for Schools including method, principles and rules adopted.

3.      That it be noted that a number of assumptions have been made with regards to the level of resources that would be available to the Council.  It is important to note there continues to be a considerable amount of uncertainty with regards to future income streams for local authorities.  Any reduction in Government’s allocation of funding to the Council would have a significant detrimental impact and further increase the budget deficit over the medium term.

4.      That it be noted that, due to external factors, budget assumptions remain subject to significant change, which could, therefore, result in alterations to the financial position facing the Council.

5.      That it be noted that it is forecast that the budget deficit is £7.1 million for 2023-2024, rising to £31.6 million by 2025-2026 and that work would continue to be undertaken to bring forward proposals to set a balanced budget for 2023-2024 and deliver a sustainable medium term financial strategy.

6.      That it be noted that the overall level of risk associated with the Draft Budget and Medium Term Financial Strategy 2023-2024 to 2025-2026 is assessed as Red.