Agenda item

(a)  That the updated MTFS targets for 2021/22 – 2023/24 be noted.

(b)  That the need to set a balanced budget over the whole of the MTFS period be noted.

(c)  That the issues and actions set out in this report which are informing the development of the Council’s MTFS be noted.

The Director of Finance & Resources introduced a report  that set out the plans for preparing a balanced budget for 2021/22 and the Medium Term Financial Strategy (MTFS) for 2021/22 to 2023/24.

There were significant financial pressures and uncertainties on all local authorities, particularly arising from the impacts of the Covid-19 pandemic. The Council was continuing to manage the in-year pressures and recognised the material impact on the MTFS in future years. The issues faced included the costs to the Council of the emergency response; the loss of income and lower revised estimates of Council Tax and Business Rates revenues; the fact that some savings plans had become unachievable; and the anticipated higher demand for services in the future such as children’s and adult social care.

The latest MTFS estimated that there would be a project cumulative budget gap of £17.9m by 2023/24.  The report stated that whilst every effort would be made to protect services the level of savings required would impact on service levels in some areas and these would be carefully considered in the process of setting future budgets.  It had been reported nationally and that several local authorities would be in severe financial difficulties, however, the Cabinet was provided assurance that Slough Borough Council was not in a financial position that would require a Section 114 notice to be considered.  The Council had entered this period in a relatively good position, with a balanced MTFS approved in February 2020, as a result of strong financial management in previous years.  Members supported the approach set out to close the future budget gap for example by managing costs, increasing efficiencies, identifying further savings and generating commercial income.

Lead Members noted the overall position and discussed several aspects of the report including the impact on reserves and the progress of discussions with the Department for Education regarding the funding position of Slough Children’s Services Trust and the liability to the Council.  It was responded that discussions were ongoing and the Department understood the Council’s position.  It was expected that further clarity would be provided in the next few weeks.  In relation to reserves, it was noted that it was unlikely the strategy agreed by Council in February to grow the reserves would be able to be implemented in the short term.  There were significant uncertainties about the anticipated rise in demand for services, future levels of government funding and the future shape of the pandemic and further reports would be provided to Members over the coming months as part of the budget process.

At the conclusion of the discussion, the Cabinet noted the report.

Resolved –

(a)  That the updated MTFS targets for 2021/22 – 2023/24 be noted.

(b)  That the need to set a balanced budget over the whole of the MTFS period be noted.

(c)  That the issues and actions set out in this report which are informing the development of the Council’s MTFS be noted.