Lead Member - Councillor Gwilym Butler - Portfolio Holder for Finance and Corporate Resources

Report of Ben Jay, Assistant Director of Finance & ICT (Deputy s151 Officer)

RESOLVED:

That Cabinet

a)    Noted the increased gap in 2024/25 and the reasons for it

b)    Noted that further information will be forthcoming on how the Council will meet the needs of social care clients and service users earlier in future, and supports Officers in the urgent preparation of effective plans

c)     Similarly, noted that further information on TOM proposals will also be forthcoming and urges Officers to brings those plans forward for implementation and delivery rapidly.

d)    Noted that the reserves position, previously a cause for considerable concern, is much improved – but also notes that action on current year pressures is needed to safeguard that improved position (including sufficient mitigation of current demand pressures through the remainder of this year and into future years).

e)    Noted that, despite some deterioration in outlook in the near-term, the MTFS continue to demonstrate that the outlook is expected to improve substantially in the coming years.

f)      Noted the changes to some of the savings plans (virements) set out in the March 2023 Budget Council meeting have seen changes at values in excess of £1m, and so Member approval is requested to confirm these changes (see attachment to Appendix 1, specifically savings EFF102 (TOM projects @ -£3m), EFF105 (GLR-led savings @ +£1m) and EFF108 (Corporate Grants @ +£2m). 2024/25 2025/26 2026/27 2027/28 2028/29 £ £ £ £ £ Remaining Gap to be Funded @ March Council 1,096,536 2,166,643 2,819,557 3,714,543 NA change - inflation and budget pressures 22,470,200 18,800,248 15,512,067 12,225,150 5,222,191 Remaining Gap to be Funded @ October Cabinet 23,566,736 20,966,891 18,331,624 15,939,693 5,222,191 Funding Gap 3

Also Cabinet noted the removal of EFF10 (Market management @ -£1.3m) and the replacement with over-achievement of EFF06 (Reablement) and EFF07 (care at home).

The Portfolio Holder for Finance and Corporate Resources presented the report and advised members that the Council’s Mid Term Financial Strategy (MTFS) had been updated to reflect anticipated inflation and other budget pressures that have superseded previous projections. Initial calculations increase the estimated budget gap next year to £23.6m, which is a combination of pay and price inflation and challenges in delivery of both base budgets and spending reduction plans and is adding to the previously identified gap in 2024/25.

Members were advised of the innovative ways of working being used to address pressures within children, adults social care and public health; however the timing and benefits of these were not yet known with sufficient confidence to be included in this update, so will be included in the December MTFS update, at which point clearer estimates of overall demand and the impact of mitigations will be available.

Concerns were expressed with regards to the lack of detail contained within the report and that it was felt there was a lack of transparency as changes in service provision had not been consulted on. It was confirmed that operational changes do not need to be reported to Cabinet; however more reports than were necessary were brought forward to ensure openness and transparency.

RESOLVED:

That Cabinet

a)    Noted the increased gap in 2024/25 and the reasons for it

b)    Noted that further information will be forthcoming on how the Council will meet the needs of social care clients and service users earlier in future, and supports Officers in the urgent preparation of effective plans

c)     Similarly, noted that further information on TOM proposals will also be forthcoming and urges Officers to brings those plans forward for implementation and delivery rapidly.

d)    Noted that the reserves position, previously a cause for considerable concern, is much improved – but also notes that action on current year pressures is needed to safeguard that improved position (including sufficient mitigation of current demand pressures through the remainder of this year and into future years).

e)    Noted that, despite some deterioration in outlook in the near-term, the MTFS continue to demonstrate that the outlook is expected to improve substantially in the coming years.

f)      Noted the changes to some of the savings plans (virements) set out in the March 2023 Budget Council meeting have seen changes at values in excess of £1m, and so Member approval is requested to confirm these changes (see attachment to Appendix 1, specifically savings EFF102 (TOM projects @ -£3m), EFF105 (GLR-led savings @ +£1m) and EFF108 (Corporate Grants @ +£2m). 2024/25 2025/26 2026/27 2027/28 2028/29 £ £ £ £ £ Remaining Gap to be Funded @ March Council 1,096,536 2,166,643 2,819,557 3,714,543 NA change - inflation and budget pressures 22,470,200 18,800,248 15,512,067 12,225,150 5,222,191 Remaining Gap to be Funded @ October Cabinet 23,566,736 20,966,891 18,331,624 15,939,693 5,222,191 Funding Gap 3

Also Cabinet noted the removal of EFF10 (Market management @ -£1.3m) and the replacement with over-achievement of EFF06 (Reablement) and EFF07 (care at home).