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

Report of James Walton – Executive Director of Resources

REPORT TO FOLLOW

RESOLVED:

1. That Cabinet noted:

i)          The alignment of this report with other reports on this agenda, including the Fees and Charges proposals, the proposed Capital Strategy, and the proposed Treasury Strategy; also the alignment to the position reported for the current financial year, set out in the Q3 Financial report and the Q3 Treasury Management report.

ii)         The analysis of the financial position of the council set out in this report and confirms the alignment of the new proposals to the outline of the necessary actions for 2024/25 already set out in the December update to the MTFS.

iii)        The levels of reserves in recent years, the forecast levels of reserves at the end of the current year, and the plans set out to ensure the adequacy of the reserves in future years.

iv)       The proposed capital investment programme including the commentary on priority schemes.

v)         The proposed spending reductions for 2024/25.

vi)       The approach of combined spending reductions and replenishment of general reserves.

2. That Cabinet recommended to Council:

vii)      Approval of the budget proposals, including revenue and capital budgets, and the associated strategies, subject to further amendments required by Cabinet, or identified as necessary by the Chief Finance Officer (“CFO”).

viii)    to approve a delegation to the CFO in consultation with the Portfolio Holder - Finance, Corporate Resources and Communities to enable specific work to be commissioned from PwC in line with the conditions set out in paragraph 4.8.

The Portfolio Holder for Finance, Corporate Resources and Communities introduced the report which set out the budget plans for Shropshire Council for 2024/25, including £56m spending reductions and £6m demand reduction measures, and aligns the Shropshire Plan with the financial strategies for revenue spending, capital investment, and treasury management.

Members were advised that the proposed spending reductions of £62m were categorized into six types: reduce cost, target operating model, manage demand, charge more, generate new income, and stop/cease services.

Members noted that Appendix 1 set out the necessary planning to ensure that reserves are retained at a safe level through the MTFS period.

It was noted that Shropshire Council were one of many councils across the country who were being faced with demand pressures and had difficult decisions to make.

Members acknowledged the level of reserves was due to increase and the finance team were congratulated on their efforts.

Concern was expressed with regards to the amount of expenditure for PWC. The Portfolio Holder stated that the work of PWC must generate cashable benefits.

Thanks were given to those who created the survey on the financial strategy as this had led to an overwhelming response.

Members’ attention was drawn to three capital projects which no longer appeared under the priority capital schemes programme which had previously been published in September 2023 and confirmation as to the location of these funds was requested. It was confirmed that these would be included as aspirational projects and that the location of the funds would be provided after the meeting.

It was queried whether the exercise asked about both making savings and whether these savings will reduce the Council’s ability to make subsequent savings or increase income. Concern was raised that should savings be made within certain service areas, there would no longer be an in-house team to deliver and PWC would need to do the work involved; thus increasing expenditure. The Portfolio Holder reiterated that PWC would need to provide cashable benefits to drive the spend down and felt that many of the savings made were as a result of their work.

It was suggested that training sessions be organised for the capital strategy and the capital programme.

RESOLVED:

1. That Cabinet noted:

i)          The alignment of this report with other reports on this agenda, including the Fees and Charges proposals, the proposed Capital Strategy, and the proposed Treasury Strategy; also the alignment to the position reported for the current financial year, set out in the Q3 Financial report and the Q3 Treasury Management report.

ii)         The analysis of the financial position of the council set out in this report and confirms the alignment of the new proposals to the outline of the necessary actions for 2024/25 already set out in the December update to the MTFS.

iii)        The levels of reserves in recent years, the forecast levels of reserves at the end of the current year, and the plans set out to ensure the adequacy of the reserves in future years.

iv)       The proposed capital investment programme including the commentary on priority schemes.

v)         The proposed spending reductions for 2024/25.

vi)       The approach of combined spending reductions and replenishment of general reserves.

2. That Cabinet recommended to Council:

vii)      Approval of the budget proposals, including revenue and capital budgets, and the associated strategies, subject to further amendments required by Cabinet, or identified as necessary by the Chief Finance Officer (“CFO”).

viii)    to approve a delegation to the CFO in consultation with the Portfolio Holder - Finance, Corporate Resources and Communities to enable specific work to be commissioned from PwC in line with the conditions set out in paragraph 4.8.