Agenda item - Medium Term Financial Plan 2023/24 to 2027/28

Report of Councillor P Kerry, Deputy Leader of the Council and Portfolio Holder for Strategic Leadership and Finance

RESOLVED

Council is recommended at its meeting on 29 January 2024

(1) That the view of the Director of Finance & Resources, that the estimates included in the Medium-Term Financial Plan 2023/24 to 2027/28 are robust and that the level of financial reserves are adequate at this time, be accepted.

(2) That officers report back to Cabinet and the Services Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.

General Fund

(3) That a Council Tax increase of £6.11 will be levied in respect of a notional Band D property (2.99%).

(4) That the Medium-Term Financial Plan in respect of the General Fund as set out in Appendix 1 to the report be approved as the Current Budget 2023/24, as the Original Budget2024/25, and as the financial projections in respect of 2025/26 to 2027/28.

(5) That the shortfall in the General Fund budget for 2024/25 as set out in Appendix 1 to the report be met from the Resilience Reserve.

(6) That the General Fund Capital Programme as set out in Appendix 4 to the report be approved as the Current Budget in respect of 2023/24, and as the Approved Programme for 2024/25 to 2027/28.

(7) That any under spend in respect of 2023/24 be transferred to the Resilience Reserve to provide increased financial resilience for future years of the plan.

Housing Revenue Account (HRA)

(8) That Council sets its rent levels for 2024/25 in consideration of the Social Housing Rent Standard increasing rents by 6% from 1April 2024.

(9) That the Medium-Term Financial Plan in respect of the Housing Revenue Account, as set out in Appendix 3 to the report, be approved as the Current Budget in respect of 2023/24, as the Original Budget in respect of 2024/25, and the financial projection in respect of 2025/26 to 2027/28.

(10) That the HRA Capital Programme as set out in Appendix 4 be approved as the Current Budget in respect of 2023/24, and as the Approved Programme for 2024/25 to 2027/28.

(11) That the Management Fee for undertaking housing services at £12.05m and the Management Fee for undertaking capital works at £1.1m to Rykneld Homes in respect of 2024/25 be approved.

(12) That Members endorse the section in the financial framework within the Management Agreement which enables the Council to pay temporary cash advances to Rykneld Homes to help meet the cash flow requirements of the company should unforeseen circumstances arise in any particular month.

(13) That Members note the requirement to provide Rykneld Homes with a ‘letter of comfort’to the company’s auditors and grant delegated authority to the Council’s Director of Finance & Resources (S151 Officer) in consultation with the Leader of the Council to agree the contents of that letter.

REASONS FOR DECISION - To recommend budgets to Council in respect of the General Fund, the Housing Revenue Account, and the Capital Programme.

OTHER OPTIONS CONSIDERED AND REJECTED - The Council is required to set a budget each year. There are no alternative options were considered at this time.

Please note that this was not a Key Decision and so can be implemented with immediate effect by officers.

As part of the Council’s Medium Term Financial Plan (MTFP), the report to Cabinet set out the Current Budget for the 2023/24 financial year. It also set out the proposed Original Budget for the 2024/25 financial year, covering the General Fund, Housing Revenue Account and Capital Programme, as well as the financial projections in respect of 2025-26 to 2027-28. Cabinet was asked to endorse and recommend them to Council for approval, at its meeting on 29 January 2024.

Members discussed the report. Cabinet heard about the financial pressures facing the Council. These included £2.3M in additional pay costs following the nationally agreed pay settlement. Cabinet was reminded that extensive use of the Council’s Resilience Reserve had been expected when the 2023-24 budget was set. However, the report made clear that because greater efficiency savings had been achieved, less use had to be made of the Resilience Reserve than projected.

Cabinet welcomed the savings which had been achieved. It reflected on the financial pressures which the Council would face over the remaining years of the Medium-Term Financial Plan, the continuing need to achieve financial savings and the possible future calls that would have to made on the Resilience Reserve if these savings were not achieved. Cabinet also considered the possible timetable for future changes to local government funding and the impact which the recently announced one-year-only increase in local government funding would have on the Council’s budget.

Cabinet considered the possible levels of Council Tax and Housing Rents that Council be recommended to set. Members discussed the need for sufficient financial resources to provide high quality services to the District and its residents. They also discussed how important it was not to add unnecessary financial pressures on Council Tax and Council Housing rent payers. At the conclusion of the discussion Cabinet felt that an appropriate balance had been struck and agreed to recommend the budget proposals to Council for approval.