Issue - meetings

The Medium Term Financial Strategy (MTFS) sets out the strategic direction and priorities for the Council as well outlining the financial context and challenges the Council faces over the next five years and the strategy that will be used to inform its annual budget process.

Councillor Richard Samuel introduced the report by saying that the financial challenge this year had been extreme with unprecedented impact on finances. The current Council has acted quickly because it was very clear, very early on in the pandemic lockdown that there was going to be a serious detrimental impact on the Council's income as it provides one of the pillars in funding  the services we provide. The financial recovery progress report was approved in July, with £20m of savings to be made in year, to balance the books.  Sadly, the government would not meet the full losses that the Council expected to encounter during this current financial year.

The Council's income position is likely to be under pressure for many years to come. It would underperform this year, with no expectations to return to previous levels next year. The Council's financial position and outturn was expected to improve during this year, although the budget would be in deficit year end to some degree. This report was not about the budget but more to set out the problems and the financial challenges that the Council would have to meet. 

Councillor Samuel took the Cabinet thought the rest of the report highlighting the difficult position over the next 5 years.  Councillor Samuel concluded that this Strategy would be a base for future discussions in terms of Council’s financial position and budget.

Councillor Richard Samuel moved the recommendations.

Councillor Kevin Guy seconded the motion by thanking Councillor Samuel and the relevant officers for this report.  Councillor Guy also said that the Council have received financial help from central government, but nowhere near enough to cover the losses incurred.

Councillor Tim Ball also supported the motion and suggested that other political groups in the Council, and the relevant Scrutiny Panels should have been more proactive in the debate on this strategy. 

RESOLVED (unanimously) that the Cabinet agreed to approve the Medium Term Financial Strategy.