Issue - meetings

To consider the Council’s Draft Medium Term Financial Strategy 2024/25 to 2027/28.

The Director of Resources explained that The Medium-Term Financial Strategy had come to the Committee as a pre-scrutiny item, prior to it going to Cabinet.

The information is constantly changing and as such there has been some updates since the report was published.

Since the budget at the end of October, the Council will now need to include National Insurance contribution increases of around £350-400,000. This may be funded by Government, but this has not yet been confirmed.

New homes bonus, as at 15 October, there has been a substantial increase in properties available for Council tax leading to an estimated grant income of £550,000. 

Car parking income is expected to increase due to the rise in car parking fees agreed at Cabinet in October.

The Government has also announced a 3.2% funding guarantee, which should provide an increase in the Council’s core spending power. Does assume that we apply a maximum council tax increase of £5 or 3% whichever is greater. Not a straightforward calculation but should be around £400,000 better off.

Borrowing costs however have increased and these will need to be budgeted for at approximately £350,000 per year going forward.

There are lots of uncertainties within these figures at the moment.

There has currently been no communication from Government, but we expect that settlement figures will be announced on 19/20 December.

Cllr Hankin enquired as to whether staff resource had been looked at as part of the ongoing budget process and whether a workforce strategy produced.

The committee would like to know many people work in a hybrid way.

Haw many staff work part time.

Cost of agency staff.

When a vacancy arises – is there a process where a manager looks at the resource and output, to determine if that role is still required.

Cllr Shires explained that agency staff were used to assist the depleted Finance team, where resourcing had been an issue. This has now been resolved so it is hoped there will not be a need for agency staff moving forward. The Council will only look to employ people based on the needs of the organisation

The Director of Resources reported that the people strategy is being finalised and will come forward to the Committee once this has been completed. 

Cllr Holliday voiced that she felt the report was well written, but asked how the Committee could input into Section 8.

Cllr Shires replied that any help that the committee could provide in identifying areas of budget savings would be greatly received.

The Director of Resources explained that there is also the prospect of business rates reform on the horizon, and this could result in the Council losing a significant amount of funding. However, the Government will have to look at those authorities that are hit hard and potentially provide a transitional grant to help authorities function. We are heading into a time where there is so much uncertainty, but we have to ensure we set a balanced budget that delivers for residents.  ...  view the full minutes text for item 220