The Cabinet Member for Corporate Services introduced the report, and emphasised the difficult financial situation faced by the Council across the next five year period; the projected budget gap for 2024/25 was just over £900,000, which would increase to £4.5 million by 2028/29. The Medium Term Financial Strategy (MTFS) was being drafted earlier in the year than previously.

The Cabinet Member outlined the two key assumptions in drafting the MTFS, which were that Council Tax would be increased by up to the referendum limit of 3%, and that the income generated through fees and charges would increase by 5% overall. It was stated that the measures were essential given the financial projections. The proposed fees and charges would be presented to the Committee in the Autumn of 2023 once finalised, with the Capital budget being presented in early 2024, following the receipt of the Local Government Finance Settlement which was expected in December 2023.

In response to questions, the Director of Finance, Resources and Business Improvement confirmed that:

·  The projected £4.5 million budget gap for 2025/26 was linked to the affordable housing strategy as the Council would be using the first tranche of the funding secured to support the strategy, incurring borrowing costs. Another contributing factor was that Central Government was likely to review Local Government Funding, which would likely affect the Council through business rate retention that was currently at 10% but could be reduced;

·  The terms for the new operator for Heather House Community Centre would include the requirement to provide services to the local community. As the Council had borne the capital costs of building a new community centre, it was felt reasonable for the operator to be responsible for the revenue costs;

·  The £49,000 and £30,000 shown for the positions associated with Biodiversity and Climate Change included salaries, plus ongoing costs such as pension contributions;

·  The charging policy for refuse bins was agreed as part of the 2023/24 budget; and

·  The Council had identified a further saving of £100,000 from the disused Park and Ride site at Willington Street for the 2024/25 financial year. Parking charges would be considered by the relevant PAC.

In response to a question, the Cabinet Member emphasised that whilst bus services were important, the previous Park and Ride site had cost the Council a significant amount of money but was not well utilised at that time.

The Committee supported the proposed MTFS and budget proposals, except for the two positions associated with Biodiversity and Climate Change. It was felt to be too premature to invest in additional positions to support the plan before the Committee received an update on its progress as requested, given the previous concerns expressed, as it was unknown if the positions proposed would support the plan’s delivery.

RESOLVED to RECOMMEND to the CABINET: That

1.  The draft Medium Term Financial Strategy for 2024/25 to 2028/29 as set out in Appendix A to the report, be approved; and

2.  The budget proposals as set out in Appendix B to the report be approved, with the exception of the two growth items relating to biodiversity and climate change, which need further review by the Committee in conjunction with a further report on the Biodiversity and Climate Change Action Plan.