Decision details

To approve the Medium Term Financial Strategy attached as Appendix 1 to the report.

The Medium Term Financial Strategy (MTFS) provides the framework for strategic planning, articulating the organisation’s key aims and ambitions and guiding our activities with medium term budget setting and planning. This sets out the current financial challenge, strategic direction and financial priorities for the Council, as well as the financing mechanisms available to the Council to achieve this.

The MTFS models future years funding requirement for the Council’s revenue budget and identifies where there are income shortfalls that require new savings plans. The strategy sets out the approach to address funding gaps prior to budget setting and the associated risks. Due to the financial challenges the Council faces, the MTFS sets out the strategic management options based on the high-level planning assumptions used in the MTFS budget forecast.

The focus is on the delivery of the second year of a two-year balanced budget, as presented to Council in February 2024, whilst recognising new and emerging risks that may require further action and development of new savings and income plans. At this stage uncertainty remains for next year following a change in government with Council financial settlements currently under review. The MTFS assumes that despite significant cuts in previous years funding, constraints will continue and will therefore be guided by the priority areas of service delivery as set out in the Corporate Strategy.

The supporting paper outlines options for balancing future budgets.