Issue - meetings

To consider a report of the Deputy Chief Executive.

Part A outlines the outcome of the review of the Council’s Medium Term Financial Plan (MTFP) 2023/24 to 2025/26.The review revisits the assumptions and forecasts underpinning the MTFP, given the changes in the unprecedented adverse national economic conditions in terms of increasing inflationary costs, increasing interest rates and increasing demand for services, to ensure they continue to be based on the latest available information.

The report highlights the expected budgetary impact which Councils are facing due to significant inflationary costs and increasing service demand, particularly for those services supporting the most vulnerable.

Due to the uncertainty, volatility, and risk inherent within the financial landscape it is recommended that the MTFP continues to be an iterative process, and that the underpinning assumptions and forecasts are retested throughout the year and reported to Cabinet and Scrutiny Committees as part of the Council’s ongoing 2024/25 budget setting process.

The Cabinet is recommended to:

(1) Note the outcomes of the MTFP Update including the continuing financial scarring impacts of the pandemic, the increased inflationary pressures including pay award, 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 slightly decreased to £10.861m in 2024/25 rising to £44.059m in 2027/28 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 2024/25 budget setting process; and

(5) Approve the recommended use of one-off resources identified during the financial year to support the Council’s 2024/25 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 Jilly Julian) 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) 2023/24 to 2025/26 including the underpinning MTFP forecasts and assumptions and given the changes in the unprecedented adverse national economic conditions in terms of increasing inflationary costs, increasing interest rates and increasing demand for services, to ensure they continue to be based on the latest available information.

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 inflationary pressures including pay award, 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 slightly decreased to £10.861m in 2024/25 rising to £44.059m in 2027/28 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 2024/25 budget setting process; and

(5) Approved the recommended use of one-off resources identified during the financial year to support the Council’s 2024/25 Budget and MTFP.