Agenda item

Executive considered a detailed report in relation to the Council’s updated Medium Term Financial Strategy 2024/25 – 2027/28 (MTFS) prior to it being presented to Council for approval.

The MTFS was the starting point for developing a meaningful four-year strategy that set out the strategic intention for all the different strands of funding available to the Council. The Council would then rely on this to inform future decisions. The Medium-Term Financial Plan (MTFP) would be prepared using the approved MTFS assumptions.

Presently, the MTFS related purely to the General Fund as the Housing Revenue Account (HRA) assumptions were based on the 30-year Business Plan. The decisions for Members around the HRA dwelling rents and service charges would be provided to Council in the Medium Term Financial Plan in February 2024. The Medium Term Financial Strategy 2024/25 – 2027/28, for the General Fund was attached at Appendix 1to the report.

The MTFS had been produced in a period where there remained a great deal of uncertainty regarding future funding of Local Government. The outcome of the Spending Review was critically important to the financial health and viability of local authorities across the country. The only prediction being made by external advisors with any certainty around the 2024/25 Spending Review, was that it would be another 1-year settlement. A possible general election in Spring 2024, meant there were unlikely to be any changes made this year; any changes made as a result of an election, could not be implemented by the Government until 2026/27 at the earliest.

Once the details of the Spending Review were known, the implications for the Council would be included in the updated MTFP, which would be presented to Members in February 2024.

Members noted the excellent work of the Finance Team led by the Section 151 Officer. The Leader agreed and added that the Council had a good Strategy in place and knew where it was going.

Moved by Councillor Clive Moesby and seconded by Councillor Duncan McGregor

RECOMMENDED that (1) the Council approve the Medium-Term Financial Strategy at Appendix 1 to the report,

(2) the Council continues to fund the General Fund revenue base budget from

the full amount of New Homes Bonus (and related grants such as Services

Grant) allocated by government,

(3) the strategic intention be set to continue to be a member of the Derbyshire

Business Rates Pool while ever it was financially advantageous for the Council to do so,

(4) the strategic intention be set to raise Council Tax by the maximum allowed in any given year, without triggering a Council Tax referendum, to endeavour to continue to deliver services. (The actual Council Tax for any given year will be decided by Council in the preceding March),

(5) the Council maintains a policy of a minimum level of Balances for the General Fund of £2m.

(Section 151 Officer)

Reasons for Recommendation

To inform the MTFP process by providing strategic financial intention.

Alternative Options and Reasons for Rejection

Members could decide not to approve the MTFS. The MTFP would then be prepared on assumptions not agreed by Members and there could be a risk it would need to be amended in February 2024 if the assumptions used were not agreeable. By law, the MTFP must be approved prior to the beginning of the financial year to which the budget related; 31^st March 2024.

Having previously declared his interest in the following item of business, Councillor Steve Fritchley left the meeting.