Issue - meetings

This item is due to be pre-scrutinised at a meeting of the Budget Scrutiny Working Group scheduled to take place on 2^nd January 2024.  Any recommendations in respect of this report, subject to the endorsement of the Overview and Scrutiny Committee, will be reported to the Executive Committee in a supplementary pack for this meeting.

Due to the length of this report and to the fact that much of the content of this report was previously considered at the meeting of the Executive Committee held on 31^st October 2023, only the covering report has been included in the main agenda for this meeting of the Executive Committee.  The full report, including both the covering report and the appendices, will be published in a supplementary pack for the meeting.

The Portfolio Holder for Finance and Enabling presented the Medium Term Financial Plan 2024-25 to 2026-27 Tranche 1 (following consultation) report.

The Committee was informed that this report was almost the same as the report considered in October 2023 prior to consultation. It outlined that the Council set out a 3-year Medium Term Financial Plan every year, with the final Council Tax Resolution being approved by Full Council in February.

Due to the Cost of Living Crisis and inflationary pressures the process had been more difficult than in previous years and therefore the MTFP had been split into two tranches.

Members were informed that the approved Tranche 1 position included some base assumptions which were as follows:

·       Council Tax – Figures assume the full 1.99% allowable increase over all years of the 3 year MTFP and no increase in numbers of properties.

·       Business Rates Increases – business rates assumed no growth in the base.

·       New Homes Bonus/Government Grants – It was assumed that levels would be the same as previous years.

·       Pension Fund assumptions took into account the latest triennial valuation which was received in September 2022.

The following “generic” pressures and savings were included in Tranche 1:

·       The impact of the 2023/4 pay award had been considered. This was an estimated increase of £805,000, however, the Council had already accounted for a pay award of 2% which reduced this amount to £575,000.

·       There were savings following budgets set in 23/4 not being required as inflation had reduced therefore the utilities budget reduced by £228,000 a year and the Inflation budget of £260,000 could also be released.

·       The £1,140k utilities reserve was transferred to the General Fund.

·       A 7% increase in fees and charges had been approved (apart from Dial a Ride where registration fees were reduced from £16.50 to £15, but journey fees increased by £1).

·       Inflation on fees and charges is 2% in 2025/6 and 2026/7.

Departmental pressures were also highlighted for Members attention:

·       There was presently a target of £500,000 for the reclaiming of Benefit overpayments.  Following receipt of more accurate information and processes this amount would now only deliver £300,000 of income.

·       The Council’s Carbon pledge was to a carbon neutral position on the fleet over time.  The £20,000 increase in budget allowed for, prices dependent, a 30% use of HVO fuel and an estimated savings of 154 tonnes of greenhouse gases from the fleet.

·       The HR structure reported into one post.  This funding added a second senior post to relieve pressure in this service area.

Finally, it was reported that the appendices to the report set out all saving proposals and also included a feedback form on the Tranche 1 proposals. To date there had been no feedback forms received. 

As highlighted earlier in the meeting, this report was reviewed by the Budget Scrutiny Working Group on the 2^nd January 2024 whereby no recommendations were made to the proposals contained within the report.

Following the presentation of the report some Members queried whether it  ...  view the full minutes text for item 73