Agenda item

That having considered the Medium Term Financial Strategy and Budget 2024/25 report, the Committee confirms that there are no specific matters to be reported back to Cabinet when it considers the report on 19 September.

The Chief Executive and Corporate Finance Manager presented an update on the additional budget requirement for 2024/25 in advance of consideration by Cabinet.  The significant challenge facing the Council in identifying solutions to agree a legal and balanced budget by March 2024 were emphasised.

The updated forecast indicated a minimum budget requirement of an additional £32.386m of revenue resources for 2024/25, taking into account ongoing risks such as the latest national position on public sector pay, the estimated impact of known changes to service demand and ongoing inflationary impacts.  The report detailed changes since July including ongoing risks that could change the budget requirement and work undertaken by portfolios over the Summer following Member budget workshops in July.  Funding solutions set out the findings from portfolio reviews including cost pressures and revisiting excluded options for 2023/24, all of which would be subject to consideration by Overview & Scrutiny committees in October.  A summary of the revised overall position at this stage indicated a remaining budget gap of £14.042m to set a legal and balanced budget.  In recognising the major budget challenge for 2024/25, representations for an improved settlement were continuing across Wales.

Councillor Bernie Attridge shared concerns about the potential outcome in the absence of a significant uplift in the settlement from Welsh Government.

In response to Councillor Alasdair Ibbotson’s query on the Stonewall subscription being amongst the additional options to be considered, the Chief Executive said it should be recognised that difficult choices would need to be made and that every aspect of the budget would need to be reviewed.

The Chair commented that the list of options from 2023/24 to be revisited would need to be risk-assessed prior to consideration by Overview & Scrutiny, as confirmed by the Corporate Finance Manager.  Following a query on a new pressure in schools, the Chief Executive explained this was a requirement due to a more rigorous approach by Estyn on health and safety in the school estate.  As requested, the Corporate Finance Manager provided details of the budget workshops scheduled for October and urged Members to attend.

The Chair sought clarity on the report’s conclusions to which Councillor Paul Johnson spoke about the Council’s approach to the budget and the role of Members in reaching difficult decisions to respond to the scale of the challenge for 2024/25.

The Chief Executive referred to the Council’s lean structure and track record in being regarded as well run financially.  However, the budget position for 2024/25 would require a different approach in order to create a programme of transformation that would develop a sustainable base of financial stability for future years.  Statutory services would continue to be delivered safely by working through those standards but would require unavoidable changes.

The recommendation in the report was moved and seconded by Councillors Bernie Attridge and the Chair.

RESOLVED:

That having considered the Medium Term Financial Strategy and Budget 2024/25 report, the Committee confirms that there are no specific matters to be reported back to Cabinet when it considers the report on 19 September.