Agenda item

Medium Term Financial Plan(13) 2023/24-2026/27- Report of Corporate Director of Resources [Key Decision: CORP/R/22/01]


The Cabinet considered a report of the Corporate Director of Resources which provided an update on the development of the 2023/24 budget and the Medium Term Financial Plan (MTFP(13)) covering the period 2023/24 to 2026/27 (for copy of report see file of minutes).


In moving the report Councillor R Bell, Deputy Leader and Portfolio Holder for Finance informed Cabinet that the report outlined the significant and escalating financial challenges the Council faced in balancing its budget next year and across the next four years.  The challenge and uncertainty faced was unlike anything the Council had faced in many years which made budget planning very challenging.  When the budget for the current financial year was approved in February there was concern about the ongoing impact of the pandemic and uncertainty about future local government finance settlements. While these issues remained of significant concern they had been overshadowed recently by the impact of high inflation especially in relation to fuel, energy and transport costs and also wage costs which were already significantly above original forecasts.  The council was also facing huge and significantly increased demand on social care budgets, particularly the budget for looked after children and significant cost pressures in the home to school transport budgets.


In seconding the report Councillor A Hopgood, Leader of the Council informed Cabinet that the updated MTFP forecasts showed an even more challenging position that the initial forecasts considered in July.  The significant unavoidable cost pressures being experienced included inflationary increases in pay, energy, waste and transport contracts, national living wage increases and enduring costs and demographic pressures in looked after children and home to school transport budgets. 



That the recommendations in the report be approved.


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