Issue - meetings

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.

The Chief Executive and Corporate Finance Manager presented a report on the first stage of the Medium Term Financial Strategy and the additional budget requirement for 2024/25.  The report set out the revised forecast prior to cost pressures and efficiency proposals being reviewed at Overview & Scrutiny meetings.  A budget workshop had also been scheduled for 31 July which would provide Members with the opportunity to gain a better understanding of the financial position and contribute to a developing budget strategy.

At this stage, the revised forecast indicated an additional budget requirement of £32.222m of revenue resources for 2024/25, taking into account the latest national position on public sector pay, the estimated impact of known changes to service demand and the ongoing impacts of inflation.  The majority of the cost pressures related to nationally agreed pay awards along with inflationary and service demand pressures in social care.

Whilst the indicative allocation of a 3.1% increase for 2024/25 (provided as part of the 2023/24 Local Government Settlement) was welcomed, it was at a considerably lower level than previous years, reflecting an estimated uplift of around £7.8m.  If this remained unchanged, there would be significant challenges to the budget for 2024/25 to meet service demands and inflationary impacts, most of which were outside the control of the Council.  A detailed budget strategy needed to be developed in parallel to contributing to national discussions on the financial outlook across Wales.  The timeline within the report detailed the process for consultation and update reports on the forecast and solutions.

The recommendation was moved by Councillor Allan Marshall and seconded by Councillor Jason Shallcross.

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.