Agenda item

RESOLVED: To

1.1.         Note the updated financial forecast and medium-term financial strategy assumptions set out in this report.

1.2.         Note the positive dialogue with DLUHC to develop a further package of support in order to set a sustainable and balanced budget for the future years 2024-25 to 2027-28.

1.3.         Approve a period of public engagement, as set out in Section 4, on the proposals for returning the Council to financial and operational sustainability including the savings and growth proposals set out in Appendices B and B1.

1.4.         Note the outcome of the public engagement will be reported back to the Executive Mayor in Cabinet as part of the budget and council tax setting decision making.

1.5.         Consider the outcome of the review of the Council Tax Support scheme at paragraphs 3.46 to 3.54 of this report.

1.6.         To approve the recommendation to Full Council that the Council Tax Support scheme is not changed from that agreed by Full Council resolution on 1st March 2023.

The Executive Mayor introduced the 2024-2028 Medium Term Financial Strategy (MTFS) Update report which sets out how the council’s financial position had stabilised in the past twelve months, which was able to be balanced with the exceptional financial support from government.

The report included the draft budget proposals for the next financial year (2024/25) which detailed how to protect essential services, living within the budget, and dealing with exceptional financial challenges.

The Cabinet Member for Finance, Councillor Jason Cummings, addressed that the budget was being managed at a local level and thanked officers across the council for their collaborative work in savings.

The Deputy Mayor and Cabinet Member for Homes, Councillor Lynne Hale, addressed Cabinet on the savings the Housing department was making under a number of transformation projects.

The Cabinet Member for Children and Young People, Councillor Maria Gatland, addressed Cabinet on the concerns of the major underspend in the department and the huge amount of work taken internally and externally to better the financial position. The current pressures faced were reviewed through the transformation programme, and she further addressed on the savings in the department for best value.

The Cabinet Member for Health and Adult Social Care, Councillor Yvette Hopley, addressed Cabinet on adult social care’s trajectory to deliver savings within the department through transformation projects.

The Cabinet Member for Communities and Culture, Councillor Andy Stranack, addressed Cabinet of the tough decisions and actions needed to assist with the Mayor’s overall plan to provide quality services. The MTFS set out the savings within the culture and sector.

The Cabinet Member for Community Safety, Councillor Ola Kolade, addressed Cabinet that the community and safety service were responding to challenges faced through funding streams that had not put additional pressures on the general fund budget. Alternative external income stream had been investigated to deliver on the medium to long term priorities.

The Cabinet Member for Planning and Regeneration, Councillor Jeet Bains, addressed Cabinet on the emphasis upon the continuing investment in planning, regeneration and building control to ensure continuation with the planning transformation programme. Savings had been proposed within the strategic transport team, and a reduction of one post in the spatial planning team.

The Cabinet Member for Streets and Environment, Councillor Scott Roche, addressed Cabinet that the streets and environment department had been smarter on the allocation of budgets, looking for efficiencies and working with community groups.

The Corporate Director for Resources and S151 officer, Jane West, addressed Cabinet upon reflection of the financial position acknowledging the challenges the council was facing. The service had provided assurance going through detailed modelling and checking through deliverability which was tested over the summer before being included in the financial strategy. The financial strategy was a continued strategy from March.

The Leader of the Opposition, Councillor Stuart King, asked a question relating to the £31 million pounds of cuts, and a further £6 million pounds gap to close, and asked how achievable the £31 million pounds in savings was, how much would residents be charged to generate the money, and how specifically was the additional £6 million pounds gap going to be closed. The Executive Mayor responded that this was a budget that the deliverability of decisions had been a key part of putting the MTFS together.  The Cabinet Member for Finance, Councillor Jason Cummings, confirmed that the £31 million pounds worth of savings was achievable. The rigorous process and checks that those savings had gone through was completed in conjunction by all departmental services to deliver the savings. The £6 million gap was a significant number of variables that applied to this budget that the service does not yet know the answer to, and it was normal to have a budget gap at this stage. Additional measures should it be required would be brought in to accommodate the process, and there was confidence that the gap would close.

The Shadow Cabinet Member for Finance, Councillor Callton Young, asked a question whether the choices were consistent with the debate on equalities heard at Full Council earlier in the October month, or the way in which the poor and vulnerable find themselves due to the cost of living crisis, further, he sought for clarity on the impact on funding which suggested that £420,000 increase in council debt recovery was planned for 2024-25 and how the council planned to squeeze money from residents under the new debt collection arrangement. The Executive Mayor responded that the council was careful about the choices in all things they did, noting that there were few choices the council faced in the decisions made due to the financial context, thus the ability for choice was very limited. A number of hardship funds had also been put in place to support the cost of living pressures, and other funds for residents for support on council tax. The Cabinet Member for Finance, Councillor Jason Cummings, added that the financial model was based on the settlement from government, and thus the MTFS would not be impacted by that. Further, the figures for the debt collection were correct and the council would be pursuing any debt owed by using the correct procedures.

The Executive Mayor in Cabinet RESOLVED:

1.1  Note the updated financial forecast and medium-term financial strategy assumptions set out in this report.

1.2  Note the positive dialogue with DLUHC to develop a further package of support in order to set a sustainable and balanced budget for the future years 2024-25 to 2027-28.

1.3  Approve a period of public engagement, as set out in Section 4, on the proposals for returning the Council to financial and operational sustainability including the savings and growth proposals set out in Appendices B and B1.

1.4  Note the outcome of the public engagement will be reported back to the Executive Mayor in Cabinet as part of the budget and council tax setting decision making.

1.5  Consider the outcome of the review of the Council Tax Support scheme at paragraphs 3.46 to 3.54 of this report.

1.6  To approve the recommendation to Full Council that the Council Tax Support scheme is not changed from that agreed by Full Council resolution on 1st March 2023.