Agenda item

As this report was considered at the previous meeting of the Executive Committee, held on 4^th February 2025, only the covering report and Appendix A to the report, which has not previously been circulated, will be provided for consideration for this item.

The covering report is attached to this agenda for information.  Appendix A to the report will follow in a supplementary pack.

This report is due to be pre-scrutinised at a meeting of the Budget Scrutiny Working Group scheduled to take place on 18^th February 2025, after the publication of the main agenda for this meeting.  Any recommendations arising from the meeting of the group will be reported for the Executive Committee’s consideration in a supplementary pack for this meeting.

The Deputy Chief Executive and Section 151 Officer presented the Medium Term Financial Plan (MTFP) 2025/26 to 2027/28 Tranche 2 report for Members’ consideration.

Members were reminded that the Committee had previously considered the report at a meeting held on 4^th February 2025, when recommendations on this subject had been endorsed by the Executive Committee, and this had been reflected in the report.  However, at that time, Appendix A to the report had not been available to consider and therefore arrangements had been made for the Committee to reconsider the item in order to provide an opportunity to note the content of that Appendix. 

Since that date, the Council had received a letter from Birmingham City Council, which managed the funding due to all Councils that had previously been members of the former Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP).  This letter, a copy of which had been sent to all former members of the GBSLEP, had asked that no business cases be submitted in 2025/26 requesting funding.  The Council was challenging this request.  However, it was considered prudent to update the MTFP to list access to these funds as a risk in the 2025/26 financial year.

During consideration of this item, Members noted that the MTFP 2025/26 to 2027/28 Tranche 2 report had been pre-scrutinised at a meeting of the BSWG held on Tuesday 18^th February 2025.  At that meeting, Members had proposed the following recommendations for the consideration of the Executive Committee:

1)          “That the Council review as a priority all grants and funding available to ensure that the Council’s use of them is maximised.  

2)          To note that Budget Scrutiny Working Group is dissatisfied with the Budget as presented and has major concerns about the viability and inherent risks of this Medium Term Financial Plan (MTFP). The Executive is asked to take action to mitigate the risks to the Budget outlined in the MTFP Tranche 2 report.”

The Executive Committee discussed each of these recommendations in turn.  In respect of the first recommendation, Members suggested that the Council already reviewed all grants and funding sources available to the Council as part of the ongoing budget setting process.  The Council was also due to recruit to a new post, of a bid writer for the Council, which would enable the Council to maximise any attempts to access additional grant funding available to local government.  Under these circumstances, the Executive Committee suggested that this recommendation from the BSWG was not necessary.

In respect of the second recommendation from the BSWG, Members commented that they disagreed with the premise of the recommendation.  Instead, Executive Committee Members commented that viable proposals had been included in the MTFP 2025/26 to 2027/28.  Furthermore, Members commented that a significant amount of work had been undertaken to identify and mitigate against risks identified in the report.  There was also greater certainty in respect of reserves and balances, following the submission of three sets of accounts.  In this context, Members commented that they would not be supporting this recommendation from the BSWG.

In concluding their remarks, Members thanked the BSWG for their hard work in reviewing the budget and for making suggestions for the Executive Committee’s consideration.

RECOMMENDED that

the additional risk, in terms of access to existing former Greater Birmingham and Solihull Local Enterprise Partnership funds from Birmingham City Council in 2025/26 be added to the Risk Log for the Medium Term Financial Plan.