The committee received the report of the Section Head – Financial Planning and Analysis setting out the process to determine the medium-term financial strategy (MTFS) for 2022-2025, the related service plans, and the allocation of financial resources to achieve them.

The Head of Finance introduced the report. The budget framework started with the council plan which was supported by the delivery plan with detail provided in all the service plans over the course of the MTFS. This was all underpinned by the revenue strategy.

There were a number of assumptions built in to the strategy including annual council tax increases of 1.99%, fees and charges increases of 3% and pay increases of 3%. The recent changes to national insurance had not yet been factored in, the cost was estimated to be £0.117 million which was likely to be funded by the government.

Regarding the capital investment programme, the committee was advised that officers would carry out detailed options appraisals with opportunities for invest to save and new income streams being regarded more favourably.

The Portfolio Holder noted that whilst officers needed to make assumptions around council tax levels it remained a political matter with the decision being made by the Mayor and Cabinet. The report did not predict the executive’s view in the future.  He also explained that references to ‘balanced budgets’ allowed for reserves to be used to cover shortfalls in income.

RESOLVED –

that the Finance Scrutiny Committee notes the 2022/23 financial planning - budget setting process as shown in Appendix 1 to the report.