Issue - meetings

The Board considered a report from the Operational Director – Finance, which presented the Medium Term Financial Strategy (MTFS) for the period 2023/24 to 2025/26.

The MTFS sets out a three-year projection of the Council’s resources and spending and was based on information that was currently available.   The most recent Public Sector Spending Review was published at the end of October 2021 and covered the next three financial years.  It was noted that details of the 2023/24 Local Government Finance Settlement were expected to be released in December 2022 on a provisional basis, with a final settlement expected in January 2023. 

The Board was advised that the delay and uncertainty regarding 2023/24 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 2023/24 – 2025/26 using a prudent estimate of the financial conditions over the course of the next three years.  Appendix 2 presented the Reserves and Balances Strategy.

The Board received an update from the Operational Director – Finance, on the Governments Autumn Budget Statement which was announced today:

·       local authorities could increase Council Tax in April 2023 by 3% with an additional 2% increase - Adult Social Care precept;

·       a Business Rates revaluation will take place in April 2023;

·       proposed adult social care reforms would be deferred for 2 years; and

·       there would be a 12 month extension of the Household Support Fund.

Reason for Decision

To seek approval for the Council’s Medium Term Financial Strategy for 2023/24 to 2025/26.

Alternative options considered and rejected

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

Implementation date

The Medium Term Financial Strategy 2023/24 will be implemented from 1 April 2023.

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%