Lead Member – Councillor Gwilym Butler, Portfolio Holder for Finance, Corporate Resources and Communities

Lead Officer - Ben Jay

REPORT TO FOLLOW

RESOLVED

3.1. To discuss the emerging pressures for the coming financial year, including both those pressures that have been quantified and which result in a gap position of £37.310m, and also those further pressures that are not yet quantified and which risk significant further widening of the gap.

3.2. To require officers to continue work to

• review and reduce, as far as possible, identified pressures, and

• prepare savings options for the coming year, to secure the balanced budget

approved by Council in February

The Portfolio Holder for Finance, Corporate Resources and Communities presented the report which indicated additional cost pressures of £19.6m, meaning that the overall gap estimated for next year has increased from £17.7m to £37.3m.

Members noted that officers had been asked to review all new cost pressures to confirm whether these are unavoidable pressures that require funding, or whether they are risks which should be understood but which may be substantially mitigated in finalising the budget for next year.

The next update to the MTFS would be brought to Cabinet in December and will set out the headline budget proposals for 2025/26 ahead of launching the public budget consultation.

Members noted that between July and October, the key changes included assuming a higher threshold for Council tax, additional price pressures in contracts, and demand for children's social care based on current trend which have not yet been quantified.

It was confirmed that the income strip had not been included in the capital table as this had not been finalised.

Members noted that the pay inflation figure was currently set at 2.5%, but there was an acknowledgment that this may need to be adjusted based on future negotiations and the number of staff remaining after workforce resizing.

Concern was raised regarding contract inflation which has doubled between July and October. This was due to various factors, including minimum wage increases and different contract terms.

Members acknowledged that the target operating model savings for the next year had been adjusted. Initially, there was an assumption of achieving £2 million in savings, but this had been reduced to £50,000. This adjustment was due to the work being brought forward into the current financial year, making it imprudent to assume an additional £2 million in savings for the next year.

RESOLVED

3.1. To discuss the emerging pressures for the coming financial year, including both those pressures that have been quantified and which result in a gap position of £37.310m, and also those further pressures that are not yet quantified and which risk significant further widening of the gap.

3.2. To require officers to continue work to

• review and reduce, as far as possible, identified pressures, and

• prepare savings options for the coming year, to secure the balanced budget

approved by Council in February