Issue - meetings

Cabinet

Recommended that Council

(a)            Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium-term to 2025/2028.

(b)           Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B.

Council

Agreed           to

A)        Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium-term to 2025/2028.

B)        Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B.

Councillor John Williams, Lead Member for Resources, presented this report, which reviewed the Council’s Medium Term Financial Strategy that had been updated to 2027/28 following the outcome of a mid-year review of financial forecasts and projected changes in services spending. He explained that the predicted deficit had been reduced to just over £7m at the end of the five-year period to just under £4m. This was due to a delay in the expected reduction in business rates until 2025/26. It was expected that this would cost the authority a total of £5.8m. It was therefore important that the long term plan to increase Council Tax and achieve savings through the Transformation Plan was adhered to.

Councillor Heather Williams stated that previous years’ reports to Council had highlighted the fact that it was becoming increasingly difficult to make savings that did not have a detrimental impact on the Council’s services. She concluded that the £2m savings proposed in the report would impact on vital services for residents and so she could not support the recommendations. Councillor John Williams assured Council that new technology, including Artificial Intelligence, would allow the authority to make savings by being more efficient, which would not affect the quality of services to residents. He explained that a lack of clarity regarding the Government’s plans and the delay of the implementation of the fair funding review made it very difficult for the Council to have an accurate five-year Medium Term Financial Strategy.

Councillor Tom Bygott asked if the table in paragraph 25 on page 41 of the agenda was hiding a budget gap that would increase in time. Councillor John Williams explained that Government would not indicate the results of its fair funding review until December this year and the figures in the report were the best forecast that the Council could make with the available data.

Councillor John Williams proposed and Councillor Peter McDonald seconded the proposals in the report. A vote was taken and were cast as follows:

In favour (28):

Councillors Michael Atkins, John Batchelor, Paul Bearpark, Anna Bradnam, Ariel Cahn, Dr Martin Cahn, Libby Earle, Peter Fane, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Sunita Hansraj, Geoff Harvey, Tumi Hawkins, Pippa Heylings, Carla Hofman, Helene Leeming, Peter McDonald, Brian Milnes, Annika Osborne, Dr Lisa Redrup, Judith Rippeth, Bridget Smith, Susan van de Ven, Dr Aidan Van de Weyer, Natalie Warren-Green and John Williams

Against (9):

Councillors Dr Shrobona Bhattacharya, Tom Bygott, Graham Cone, Sue Ellington, Mark Howell, Lina Nieto, Bunty Waters, Dr Richard Williams and Heather Williams.

Abstain (0)

Council

Agreed          to

A)       Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium-term to 2025/2028.

B)       Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B.