Agenda item

Report of the Assistant Director, Resources

The Assistant Director, Resources, submitted a report (previously circulated), which invited Members to give consideration to the Medium Term Financial Plan (MTFP) for 2025/26 to 2028/29, and forward any views, in particular those in relation to the services and finances which were specifically within the remit of this Scrutiny Committee.

The submitted report stated that the MTFP had been agreed by Cabinet on 3 December 2024 as the basis for consultation, and Members were asked to discuss and consider the overall contents of the MTFP, however, with particular emphasis on those services and finances within the MTFP which specifically related to those areas within their remit, and forward any views to a Special Meeting of the Economy and Resources Scrutiny Committee, to be held on 20 January 2025, for consideration. It was reported that the Economy and Resources Scrutiny Committee would then agree a formal response to Cabinet on behalf of all the Scrutiny Committees, as part of the consultation.   

A briefing was delivered to Councillors on 11 December 2024 which provided an overview and highlighted key points in the plan. It was noted that since the MTFP had been published for consultation, the Council had received notification of the draft financial settlement for 2025/26, with an update on the draft financial settlement provided to Members.

Concerns were raised in relation to the use of reserves to balance the budget, and whilst it was acknowledged that the proposed additional funding received as part of the draft financial settlement was welcomed, it was noted that the Council’s reserves would still run out prior to the end of the proposed plan should circumstances remain the same.

Members also recognised the additional pressures created by the increase in National Insurance contributions, and the concerns raised by suppliers, however noted that the Council did not have the resource to support the uplift.  

Discussion ensued on the position in other authorities and Members cited examples where authorities were not in the position to budget for such a lengthy period, and speculated on the manner in which funding might be distributed in a fairer way in future.

RESOLVED - (a) That the report be noted, and that the Chair of this meeting, in consultation with the Lead Scrutiny Officers supporting this Scrutiny Committee, be given authority to agree the Minutes of this Ordinary Meeting of the Scrutiny Committee, in order to enable the Minutes to be considered at a Special Meeting of the Economy and Resources Scrutiny Committee, scheduled to be held on 20 January 2025.

(b) That the minority view of this Scrutiny Committee is that it could not support the MTFP in its current form due to the proposed use of all reserves prior to the end of the proposed MTFP.