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Medium Term Financial Strategy
- Appendix A: Draft Medium Term Financial Strategy 2022/23-2026/27, item 123 PDF 428 KB View as HTML (123/2) 286 KB
- Appendix B: Strategic Revenue Projection 2022/23-2026/27, item 123 PDF 23 KB View as HTML (123/3) 10 KB
- Appendix C: Budget Consultation Survey, item 123 PDF 455 KB View as HTML (123/4) 120 KB
The Director of Finance and Business Improvement introduced the report and highlighted the influence of the Council’s four strategic priorities as part of the budget setting process.
The assumptions made in developing the budget were that Council Tax would be increased by two per cent and that the underlying inflation rate was also at two per cent. The inflationary assumption matched the long-term target set by the Government and the Bank of England. As the inflation rate was currently higher than the target, a £500,000 ‘Contingency for Future Pressures’ had been included for the next financial year. It was noted that varying inflationary assumptions, with energy prices being an example, had been taken into account. The current financial assumptions provided for a surplus in the 2022/23 financial year, with a deficit to be experienced in 2023/24. This was due to issues such as the new waste contract and the loss of business rates growth.
Specific attention was drawn to the New Homes Bonus as the funding could be used as revenue expenditure towards the Local Plan, amongst other considerations. The results of the residents survey attached at Appendix C to the report were highlighted, with the respondent’s top three services being environmental enforcement, housing and homelessness and parks and open spaces.
In response to a query, the Director of Finance and Business Improvement confirmed that the report on the Medium-Term Financial Strategy that would be presented to the Committee in January 2022 would include an additional adverse inflationary scenario.
RESOLVED: That the Draft-Medium Term Financial Strategy be considered and that Committee’s comments be taken into account.