Issue - meetings

To consider a joint report of the Leader of the Council and Cabinet Member for Devolution and Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance.

The Leader of the Council and Cabinet Member for Devolution (Councillor Elise Wilson) submitted a report (copies of which had been circulated) providing an update the Council’s 2021/22 to 2022/23 Medium Term Financial Plan forecasts and assumptions taking account of local and national changes.

RESOLVED - That the Medium Term Financial Plan forecasts for the Council’s finances for the period 2021/22 to 2022/23 be noted.

To consider a joint report of the Leader of the Council and Cabinet Member for Devolution and Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance.

The purpose of the report is to update the Council’s 2021/22 to 2022/23 Medium Term Financial Plan (MTFP) forecasts and assumptions as part of setting a robust and resilient budget and financial plan to meet the unprecedented uncertainty, volatility and risk within the financial landscape. 

The Cabinet is recommended to:

1)    Note the details of the 2021/22 Provisional Local Government Finance Settlement and the expected date of the announcement of the Final Local Government Finance Settlement;

2)    Note, and comment upon as appropriate, the financial forecasts for 2021/22 to 2022/23;

3)    Note and approve the indicative budget adjustments since the MTFP Update presented to the Cabinet meeting on 22 December 2020 resulting in savings requirement of  £7.551m in 2021/22;Approve the allocation of £5.511m of the corporate contingency budgets to Cash Limit budgets as part of the budget setting process as set out in paragraphs 3.4 to 3.6;

4)    Note the Section 151 Officer recommendation to increase the Council’s General Fund Balance by £4.983m in 2021/22 aligned to his risk assessment of the budget and the adequacy of reserves and balances to support the 2021/22 Budget; and  

5)    Take the necessary steps to propose a final balanced 2021/22 Budget including the proposed Council Tax increase to be recommended for approval at the Council meeting on 25 February 2021.

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

The Leader of the Council and Cabinet Member for Devolution submitted a report (copies of which had been circulated) providing an update on the Council’s 2021/22 to 2022/23 Medium Term Financial Plan (MTFP) forecasts and assumptions as part of setting a robust and resilient budget and financial plan to meet the unprecedented uncertainty, volatility and risk within the financial landscape.

The Leader of the Council stated as the Covid-19 pandemic had progressed and Council services had responded accordingly, there had been a consequent impact on Council budgets which had been a cause of significant concern.  However, following the announcement of a funding package from central government, the outlook was now better that previously expected. Nonetheless, the Leader stated that local government still needed certainty and clarity in the medium term with regard to its finances and it was disappointing that this had not been forthcoming.

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance further reported that with regard to 2021/22 the Council was in a relatively stable financial position, however the problem faced by most local authorities was that for 2022/23 there remained many unknowns including whether there would be a long-term funding arrangements for adult social care.

RESOLVED – That having considered an update on the forecasts for the Council’s finances for the period 2021/22 to 2022/23 following the provisional Local Government Finance Settlement announced on 17 December 2020, the Cabinet has agreed to:-

·         Note the details of the 2021/22 Provisional Local Government Finance Settlement and the expected date of the announcement of the Final Local Government Finance Settlement;

·         Note, and comment upon as appropriate, the financial forecasts for 2021/22 to 2022/23;

·         Note and approve the indicative budget adjustments since the MTFP Update presented to the Cabinet meeting on 22 December 2020 resulting in savings requirement of  £7.551m in 2021/22;Approve the allocation of £5.511m of the corporate contingency budgets to Cash Limit budgets as part of the budget setting process as set out in paragraphs 3.4 to 3.6;

·         Note the Section 151 Officer recommendation to increase the Council’s General Fund Balance by £4.983m in 2021/22 aligned to his risk assessment of the budget and the adequacy of reserves and balances to support the 2021/22 Budget; and 

·         Take the necessary steps to propose a final balanced 2021/22 Budget including the proposed Council Tax increase to be recommended for approval at the Council meeting on 25 February 2021.