Issue - meetings

The Board considered a report from the Operational Director – Finance, which presented the Medium Term Financial Strategy (MTFS) for the period 2022/23 to 2024/25.

The MTFS sets out a three-year projection of the Council’s resources and spending and was based on information that was currently available.   It was reported that limited financial information was available for 2022/23, with the Public Sector Spending Review being the first indicator of funding resources.  The Spending Review was published at the end of October 2021 and covered the next three financial years.  It was noted that details of the 2022/23 Local Government Grant Settlement were expected to be released in December 2021 on a provisional basis, with a final settlement expected in January 2022. 

The Board was advised that the delay and uncertainty regarding 2022/2023 financial resources meant the financial information included within the MTFS was based on a large number of assumptions and best estimates.  The financial forecast would be updated as and when further information was known.  Appendix 1 therefore detailed the MTFS from 2022/23 – 2024/25 using a prudent estimate of the financial conditions over the course of the next three years.  Appendix 2 presented the Reserves and Balances Strategy.

Reason for the Decision

To seek approval for the Council’s Medium Term Financial Strategy for 2022/23 to 2024/25.

Alternative Options Considered and Rejected

The alternative option of not maintaining a Medium Term Financial Strategy had been considered.  However, this would not follow good financial management practice, as the Medium Term Financial Strategy was a key element in informing the Council’s financial planning and budget setting process.

Implementation Date

The Medium Term Financial Strategy 2022/23 would be implemented from 1 April 2022.

RESOLVED:  That

1)    the Medium Term Financial Strategy be approved;

2)    the 2022/23 base budget be prepared on the basis of the underlying assumptions set out in the Strategy;

3)    the Reserves and Balances Strategy be approved; and

4)    the award of Council Tax Support for 2022/23 remains at the 2021/22 level of 21.55%