Issue - meetings

The Cabinet Member for Finance, Performance and Core Services introduced a report on the Council’s Medium-Term Financial Strategy (MTFS) and Reserves Policy for the period 2021-22 to 2025-26.

The Cabinet Member explained that the MTFS had been developed against the backdrop of the financial uncertainty stemming from the COVID-19 pandemic and the ongoing pressures facing the local government sector in view of the Government’s delay in implementing Fair Funding reforms and 75% business rates retention until 2023-24 at the earliest.

The MTFS identified a cumulative funding gap of £25.1m over the five-year period.  To ensure an ongoing financially balanced position, the intention was to close the gap through both short and longer-term interventions which would require budget savings to be delivered.  The report also set out principles for a robust reserves policy and the Cabinet Member was pleased to confirm that the Council’s prudent management of its finances meant that it was not necessary to use General Fund reserves in 2020/21, thereby providing the Council with a buffer for the forthcoming year.

Cabinet Members expressed dismay at the lack of financial support from the Government for essential Council services and vowed to continue to pressure the Government to deliver its funding promises. 

Cabinet resolved to:

(i)  Approve the Medium Term Financial Strategy and Reserves Policy 2021-22 to 2025-26 as set out in Appendices A and C to the report and the approach proposed to ensure the financial health of the Council over the medium term;

(ii)  Approve the 2021/22 budget adjustments as detailed in paragraphs 9.1 - 9.5 of the report;

(iii)  Approve the addition to the Capital Programme and drawdown of up to £927,000 from the Parking Reserve to fund upgrades to the CCTV control room and cameras, as detailed in paragraphs 9.6 - 9.9 of the report; and

(iv)  Approve the drawdown of £1.05m from the Investment and Acquisition Strategy (IAS) reserve to fund additional resources to support the delivery of IAS returns, as detailed in paragraph 9.10 of the report.