Issue - meetings
Financial Strategy
Meeting: 08/04/2024 - Executive (Item 135)
135 Medium-Term Financial Strategy (MTFS) 2025/26 to 2029/30 PDF 4 MB
To consider the report.
Additional documents:
- Appendix 1 - High Level MTFP, item 135 PDF 684 KB
- Appendix 2 - Finance Achievements 2023-24, item 135 PDF 1 MB
- Appendix 3 - Financial Control Boards, item 135 PDF 634 KB
- Appendix 4 - Development of risks for Somerset Council, item 135 PDF 756 KB
- Appendix 5 - S151 Assessment of current financial position, item 135 PDF 3 MB
Decision:
Following consideration of the officer report, appendices and discussion, the Executive:
1. Recommends approval of the Medium-Term Financial Strategy (MTFS) for 2025/26 to 2029/30 and the savings targets for 2025/26 to Council.
2. Recommends that the Council continues with the aim of avoiding a section 114 notice by taking all of the necessary actions and continuing to operate as if one had been issued.
3. Agreed to receive an updated Medium-Term Financial Plan in September 2024 which sets out the latest forecasts of future service costs, income and funding from 2025/26 to 2029/30.
4. Recommends to continue actively campaigning for the reform of funding of councils and greater local freedoms.
5. Approved that the Financial Control Boards continue to operate in 2024/25 as set out in Appendix 3 of the report.
Minutes:
The Leader of the Council, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report.
The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting: that the Medium-Term Financial Strategy (MTFS) 2025/26 to 2029/30 and appendices, the Capital Programme Report and Treasury Management Strategy to be considered at Full Council in either April 2024 / May 2024; the key budget concerns and complex budget monitoring and setting; formally thanked the Chair and Members of the Audit Committee in completing and approving the many sets of accounts over the year; the request for the capitalisation direction and government timeframes; the critical and welcome regular budget updates; work to incorporate the LGR savings into the transformation plans and the current and future budget; and the work on strategic risk reporting.
The Executive Director, Resource and Corporate Services, Jason Vaughan, further added to the above points, highlighting: the financial challenges faced, including making savings, costs increasing more than income and the pace of delivery; summarised the recommendations including savings targets, campaigning for the reform of local government funding and local freedoms and flexibilities, practical changes to how the financial control boards to operate based on the feedback and learning from the past six months; the forecast budget gap for 2025/26; summarised the key strands of the financial strategy and process to prepare and set the budget for 2025/26; the high level medium term financial plan and the underlying key assumptions to be updated September 2024; summary of the key financial achievements, including a new financial system, amalgamating five Councils into one Council in a very quick timetable, closed ten sets of accounts during the year, the assessment against the CIFPA code and action plan; and the assessment as the 151 officer in respect of a Section 114 notice.
The Leader of the Council, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the continuation of financial control measures and the progress made in the no PO, no pay process and the need for consistency across the board; grants and funding, including the need for a longer-term settlement across the sector locally and nationally, the inefficiency of the grant application process, highlighting the significant amount of officer time both pre and post bid and estimated resource required; the financial management style, including the budget control, responsibility and understanding across the organisation, how the budget links into plans especially regarding the change to the workforce and pace of transformation, the work to improve risk reporting, pressures across the services, and national funding context and timetables.
The Leader of the Council, Cllr Bill Revans, thanked the finance team and the Audit Committee for their hard work over a sustained challenging period.
The Executive proceeded to vote on the recommendations, which were agreed unanimously.
Following consideration of the officer report, appendices and discussion, the Executive:
1. Recommends approval of the Medium-Term Financial Strategy (MTFS) ... view the full minutes text for item 135