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.      The draft budget strategy and medium term financial strategy which underpin Our City, Our Plan, including changes to corporate resource assumptions, growth and inflation be approved.

2.      That it be noted that significant progress had been made towards setting a balanced budget for 2023-2024 however there remains a high level of risk and uncertainty. Further options would continue to be explored to address the updated projected budget deficit of just under £1.0 million.

1.      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 as detailed in section 8 of the report.  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 allocation of funding to the Council would have a significant detrimental impact and further increase the budget deficit over the medium term.

2.      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.

3.      That it be noted that the updated projected budget deficit assumes the achievement of recurrent budget reduction and income generation proposals totalling £12.2 million over the period of 2022-2023 to 2025-2026. 

4.      That it be noted that a further update on the budget strategy would be presented to Cabinet in October 2022 and that there would be a period of formal budget consultation and scrutiny.  This would also align to the annual refresh of Our City, Our Plan, setting out our key city priorities. 

5.      That it be noted that it is forecast that by 2025-2026 the budget deficit would rise to £25.7 million and that work would continue to be undertaken to bring forward proposals to 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.