Agenda item

Finance Action Plan Update

Decision:

(a) That the update on the key areas of the work undertaken to respond to the many and very serious financial challenges and the recommendations made by external agencies be received. Specifically, on the following issues:

· capitalisation direction and changes to the estimated value of this

· progress being made on generating capital receipts

· MRP

· the Council’s borrowing levels

· accounts

· budgets

· the dedicated schools grant

· the finance structure

· revenues and benefits

(b) That the progress and issues arising from the continued work on the above be noted.

Minutes:

The Lead Member for Financial Oversight & Council Assets introduced the latest Finance Action Plan report which updated Cabinet on the key areas of work undertaken in response to the serious financial challenges and recommendations made by a range of external agencies. The Cabinet was asked to recommend the report to Council on 22^nd September 2022.

It was reported that the Council’s strategy which included the sale of assets to reduce borrowings and MRP/interest costs, and reducing net expenditure was starting to come to fruition, although the Lead Member emphasised that there was a significant amount of work to do before the Council’s financial position was stabilised.

It was estimated that the overall capitalisation direction could be reduced from a potential total of £782m to £369m. The improvement was due to several factors including improved and accelerated asset sales leading to earlier financing and hence reductions in MRP profiling, together with improvements to the collection fund, council tax and funding settlement figures. The assumptions that underpinned the figures was summarised and the key risks and pressures were discussed including pay inflation, contract inflation and social care reform. The Cabinet recognised that the figures in the report would undoubtedly change and it remained essential that the modelled asset sales and savings plans, or alternate savings, were delivered. Whilst many challenging decisions would still need to be taken in the coming months and years, Lead Members cautiously welcomed the improvement in the position. The Leader of the Council reiterated the importance of adhering to the agreed financial strategy, particularly continuing to identify and deliver departmental savings, but that the report set out a path to the financial sustainability of the authority.

Lead Members asked about the progress on the accounts and the Executive Director responded that the accounts were on track, noting that 2018/19 was a challenging audit and there may be some delay.

Councillor Strutton addressed the Cabinet and commented on the late publication of the report.

At the conclusion of the discussion the Cabinet welcomed the report and agreed the importance of continuing to deliver the agreed financial strategy. The report was recommended to Council.

Resolved –