Issue - decisions

Medium Term Financial Strategy Update - July Finance Review

08/11/2024 - General Fund Revenue Budget 2025/26 and Medium Term Financial Strategy 2025/26 to 2028/29

That the following be approved as a basis for consultation:

 

1.  Phase one 2025/26 budget proposals for revenue; 

 

2.  Phase two 2025/26 budget proposals for revenue will be presented to Cabinet in January to reduce the £17.351m projected gap prior to the local government finance settlement due in December;

 

3.  Draft five-year capital programme for 2025/26 to 2029/30;

 

4.  Update on the Medium Term Financial Strategy 2025/26 to 2028/29;

 

Cabinet agreed to note the following:

 

5.  Updated Treasury Management Strategy.

 

6.  The Chief Executive and Executive Director, Finance and Commercial, Commissioners to continue conversations with the Ministry of Housing, Communities and Local Government (MHCLG), and His Majesty’s Treasury (HMT) on terms for Exceptional Financial Support for 2025/26.


05/07/2024 - Financial outlook and review of the Medium Term Financial Strategy including re-phasing the Capital Programme 2024/25 to 2027/28

That the following be noted:

 

1.  That the overspend detailed in the Provisional Outturn Report 2023/24 that was presented on Cabinet on 17th June 2024 of £15.5m reflected an underlying overspend of approximately £11.7m.  These pressures contribute to an overspend in 2024/25.

 

2.  That early indications from budget monitoring work undertaken in the year to date indicate that there were new pressures of approx. £4.1m.  This equates to a forecast overspend for 2024/25 of £15.8m prior to any mitigating actions being agreed.  This impacts on the overall savings requirement for 2024/25 and future years. 

 

3.  The Budget Smoothing Reserve has an opening balance in this financial year of £10.7m, and already has commitments against it of £6.0m, £4m to the Transformation Reserve approved by Council in March 2024 and £2m Upton Lodge impairment as per another report at this Cabinet, bringing the effective balance down to £4.7m.

 

4.  The forecast budget gaps for the next 5 years are £15.0m in the current year, rising to £31.9m by 2028/29 and will require changes to the council’s target operating model to achieve a balanced budget.

 

The Cabinet approved:

 

5.  The timetable to produce the 2025/26 Budget and 2026/29 Medium Term Financial Strategy, as shown in Appendix 1 to the report.

 

6.  The re-phased General Fund Capital Programme for 2024/25 to 2027/28 as shown in Appendix 3 to the report.

 

The General Fund revenue budget was approved at £162.203m and included growth (including inflation) of £18.327m, and savings of £12.206m, of which £12.183m is in the MTFS Savings Plan, and £0.023m relates to fee uplifts. This report rolls forward the period of the MTFS into 2028/29, and the tables reflect this additional year.

 

7.  The addition of the following new projects to the capital programme, as detailed in paragraphs 4.10 and 4.15 to 4.17, and Appendix 3 to the report.

 

·  Childcare expansion

·  Upton Court Pathway

·  Cippenham Bridges

·  Swimming Pool Support Fund initiative