Medium-Term Financial Plan (MTFP) presented to Full Council
The October update focuses on the main areas of work we've recently undertaken to improve our financial position.
Governance improvements continue to ensure our financial sustainability for the medium and longer term.
This latest report provides a brief update on the work done over the summer.
Review of reserves and balances
As part of closing the 2023-24 accounts, we have reviewed the level of reserves and balances. It is important that we have the right level of reserves. This ensures we can continue to support communities if there is a sudden change in circumstances.
We've asked service managers to update their contract renewals. This information will ensure we have enough money put by for items, such as:
- car park maintenance
- maintaining its information and communications infrastructure
Review of capital programme and new bids
As part of our Financial Recovery Plan, the capital programme was significantly reduced last year. Changes to the capital programme affect capital financing costs within the MTFP. So the programme needs to be regularly reviewed. A Strategic Capital Board has been set up to do this.
We've asked managers for information on potential extra spending they would like added to this programme. We will consider and prioritise bids in line with our corporate priorities.
Revenue budget growth bids
We're currently reviewing the General fund revenue budgets. We've organised 'Challenge sessions' for each service area. These sessions will review budgets in the context of:
- the MTFP budget gap
- the new Corporate Strategy
Growth bids for revenue budgets are being examined and prioritised in the same way.
Review of funding assumptions post general election
The new Government has raised issues around the current state of public finances. It seems unlikely that new funding will be available for district councils in the upcoming spending review. We hope a multi-year settlement will be available after this year. This will enable us to plan ahead more effectively.
Our current assumptions
- council tax increases will remain at 2.99%
- grants will remain fairly static for 2025-26
Other work undertaken
We're reviewing the Housing Revenue Account (HRA) budgets alongside the General Fund budgets. We're also updating the long-term Business Plan to include new schemes to benefit residents.
Effective scrutiny of the MTFP and budget proposals continues to show our commitment to:
- transparency
- good governance
This reflects one of our key priorities of building a resilient and well-managed council.
Lead Councillor for Finance and Property, Cllr Richard Lucas says:
"I appreciate all the hard work the finance team have done over the summer. The current stability of our finances is good reason for residents to have confidence in our on-going financial security.
We still face some challenges, but residents can be confident that we will be bringing forward a balanced budget for 2024-2025. It will represent best value for our communities and local businesses.
Read October Medium-Term Financial Plan Update (opens new window)
More information about the Corporate Strategy
What happens next?
The budget and MTFP process for 2025-26 began earlier this year. The first report went to the Overview and Scrutiny Resources Committee in July 2024. That report set out the work programme for the year.
The Overview and Scrutiny Resources Committee will undertake detailed examination of budget proposals. The meetings will take place in September, November and January.
The budget sets out how we will continue to deliver our services over the next three financial years. The Council has a legal duty to set a balanced budget.
The final budget papers will be presented to Full Council for approval on 5 February 2025.
Published on: 9 October 2024