Issue - meetings

To consider a report of the Deputy Chief Executive and Corporate Director for Corporate and Support Services.

The purpose of the report is to outline the outcomes of the review of the Council’s Medium Term Financial Plan (MTFP) 2022/23 to 2024/25. The review has considered the underpinning MTFP forecasts and assumptions approved at the Council Budget Meeting on 24 February 2022 and determined whether these forecasts and assumptions are still appropriate in light of the context of the financial landscape.

The Cabinet is recommended to:

(1) Note the outcomes of the MTFP Update including the continuing financial scarring impacts of the pandemic, the increased Energy costs, inflationary pressures, increased demand in Children’s services and the highlighted changes to the MTFP forecasts and assumptions approved in February;

(2) Approve the forecast and assumption adjustments as a result of the MTFP Update outlined in the report;

(3) Note that the Council’s savings requirement has increased to £16.953m in 2023/24 rising to £33.329m in 2024/25 as a result of the adjustment highlighted and subject to further review and updates during the financial year;

(4) Note that due to the significant uncertainty, volatility, and risk of the financial landscape the assessment of the MTFP forecasts and assumptions will continue to be iterative with further updates to the MTFP reported to Cabinet as part of the 2023/24 budget setting process; and

(5) Approve the recommended use of one-off resources identified during the financial year to support the Council’s 2023/24 Budget and MTFP.

Officer contact: Jonathan Davies on 0161 218 1025 or email:  jonathan.davies@stockport.gov.uk

The Cabinet Member for Finance & Resources (Councillor Malcolm Allan) submitted a report (copies of which had been circulated) inviting the Cabinet to consider the outcomes of the review of the Council’s Medium Term Financial Plan (MTFP) 022/23 to 2024/25 including the underpinning MTFP forecasts and assumptions approved at the Council Budget Meeting on 24 February 2022 and determine whether these forecasts and assumptions are still appropriate in light of the context of the financial landscape.

The following comments were made/ issues raised:-

·         There remained a significant degree of uncertainty following the recent change of Prime Minister.

·         A large number of circumstances at a national and international level had combined to provide a negative outlook on the financial circumstances of the country and the local authority.

·         The costs associated with placing a child in care were highlighted and it was noted that these were increasing.

RESOLVED – That in relation to the Medium Term Financial Plan (MTFP) Update, the Cabinet has:-

(1) Noted the outcomes of the MTFP Update including the continuing financial scarring impacts of the pandemic, the increased Energy costs, inflationary pressures, increased demand in Children’s services and the highlighted changes to the MTFP forecasts and assumptions approved in February;

(2) Approved the forecast and assumption adjustments as a result of the MTFP Update outlined in the report;

(3) Noted that the Council’s savings requirement has increased to £16.953m in 2023/24 rising to £33.329m in 2024/25 as a result of the adjustment highlighted and subject to further review and updates during the financial year;

(4) Noted that due to the significant uncertainty, volatility, and risk of the financial landscape the assessment of the MTFP forecasts and assumptions will continue to be iterative with further updates to the MTFP reported to Cabinet as part of the 2023/24 budget setting process; and

(5) Approved the recommended use of one-off resources identified during the financial year to support the Council’s 2023/24 Budget and MTFP.