Issue - meetings

To consider a report of the Assistant Director for Finance (Interim Section 151 Officer).

Part A outlines the outcome of the review of the council’s Medium Term Financial Plan (MTFP) update 2024/25 to 2028/29.

The review highlights the continuing financial challenges as a result of significant budget pressures due to inflationary costs and increasing need for services, and the adjustments needed to the approved MTFP forecasts and assumptions in order to present the most accurate forecast of the council’s financial position and saving requirement over the medium-term period.

It is recommended that the updating of the MTFP continues to be iterative and the underpinning MTFP forecasts and assumptions retested throughout the year and reported to Cabinet and Scrutiny Committees as part of the council’s 2025/26 budget setting process.

The Cabinet is recommended to:-

(1) Note the outcomes of the MTFP update including the identified core budget pressures in Children’s and Education services, the fleet loan facility vehicle depreciation, 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 decreased to £24.517m in 2025/26 rising to £61.898m in 2028/29 as a result of the adjustments 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 2025/26 budget setting process; and

(5) Approve the recommended use of one-off resources identified during the financial year to support the council’s in-year financial position, the 2025/26 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) detailing the outcomes of the review of the council’s Medium Term Financial Plan (MTFP) update 2024/25 to 2028/29 which highlighted the continuing financial challenges as a result of significant budget pressures due to inflationary costs and increasing need for services, and the adjustments needed to the approved MTFP forecasts and assumptions in order to present the most accurate forecast of the council’s financial position and saving requirement over the medium-term period.

The Cabinet Member commended the ongoing work of officers that had meant that the council remained well-placed to tackle the ongoing financial constraints that the local government sector found itself in.  It was further stated that notwithstanding these financial challenges, the council remained optimistic for the borough and its residents.

RESOLVED - (1) That the outcomes of the MTFP update including the identified core budget pressures in Children’s and Education services, the fleet loan facility vehicle depreciation, and the highlighted changes to the MTFP forecasts and assumptions approved in February be noted.

(2) That approval be given to the forecast and assumption adjustments as a result of the MTFP Update outlined in the report.

(3) That it be noted that the council’s savings requirement has decreased to £24.517m in 2025/26 rising to £61.898m in 2028/29 as a result of the adjustments highlighted and subject to further review and updates during the financial year.

(4) That it be 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 2025/26 budget setting process.

(5) That approval be given to the recommended use of one-off resources identified during the financial year to support the council’s in-year financial position, the 2025/26 Budget and MTFP.