Agenda item

The Cabinet considered a report of the Director of Corporate Resources which set out the proposed Medium Term Financial Strategy (MTFS) for 2024/25 to 2027/28, for consultation and scrutiny.  A copy of the report marked ‘Agenda Item 4’ is filed with these minutes.

Mr. L. Breckon CC reiterated the Council’s worsening financial position and stressed that it was necessary to keep scaling back to make services deliverable.  He encouraged the public to take part in the consultation on the MTFS.

Members agreed that it was necessary to acknowledge the fact that the Council was very efficient and did the best it could with the money it had available.  However, it was also felt that there needed to be a real shift in how statutory duties were to be delivered in the future as it was not sustainable to continue to use reserves to fund the deficit.  As well as responding to the consultation, Mr. O. O’Shea CC urged members of the public to contact their local MPs with their concerns as it was hoped that this would help in obtaining a fairer funding deal for Leicestershire.

RESOLVED:

a) That the proposed Medium Term Financial Strategy, including the 2024/25 revenue budget and capital programme, be approved for consultation and referred to the Overview and Scrutiny Committees and the Scrutiny Commission for consideration;

b) That the Director of Corporate Resources, following consultation with the Cabinet Lead Member, be authorised to-

i. agree a response to the provisional Local Government Finance Settlement;

ii. decide on the appropriate course of action with regard to the Leicester and Leicestershire Business Rates Pool in 2024/25 and, subject to agreement by all member authorities, to implement this;

c) That each Chief Officer, in consultation with the Director of Corporate Resources and following consultation with the relevant Lead Member(s), undertake preparatory work as considered appropriate to develop the savings set out in the draft MTFS and to identify additional savings in light of the financial gap in all four years of the MTFS, to enable the Cabinet and Council to consider further those savings to be taken forward as part of the MTFS and implemented in a timely manner;

d) That a further report be submitted to the Cabinet on 9 February 2024.

(KEY DECISION)

REASONS FOR DECISION:

To enable the County Council to meet its statutory requirements with respect to setting a balanced budget and Council Tax precept for 2024/25 and to provide a basis for the planning of services over the next four years.

To ensure that the County Council’s views on the provisional Local Government Finance Settlement are made known to the Government.

To enable the County Council (alongside the pooling partners) to respond to the Department for Levelling Up, Housing and Communities (DLUHC) in respect of the Business Rates Pool within 28 days from the draft Local Government Finance Settlement.

To enable early work to be undertaken on the development of new savings to address the worsening financial position.

To consider feedback from consultation on the draft MTFS and the views of the Overview and Scrutiny bodies and the final recommendations to be made to the County Council.