Issue - meetings

Background:

This report set out projections for the Council’s finances over the coming five years, presenting estimates of the available income streams alongside initial assumptions around pressures on the cost of services.

The report provided details of initial projections for additional resources, which were limited to £21.378million. However, initial projections for the increased budget requirement stood at £60.123million, leading to a potential budget gap for 2024/25 of £38.745million, rising to £71.840million in 2027/28.

Progress in reducing the projected gap would be reflected in the Draft Budget 2024/25, which would be presented to the Cabinet in November 2023.

Three key actions to be taken by the Cabinet in response to the budgetary situation were highlighted during discussion. These were as follows:

1)    National lobbying through the cross party F20 group of lowest funded councils in the country, which Medway was a member of. This group was lobbying the Government to implement a fairer method for the distribution of local government funding. Medway would be writing to the other 19 F20 members to highlight the need for a strong collective voice to central government to highlight that Medway and local government deserved better.

2)    Working with local government sector support organisations including the Local Government Association, the Chartered Institute of Public Finance and Accountancy (CIPFA) and Solace, the network for local government and public sector professionals, to share best practice and identify what actions could be taken to improve the financial outlook of local government.

3)    Direct engagement with the Department for Levelling Up, Housing and Communities to make the case for Medway to receive an increased and fairer level of funding.

Reasons:

The Medium Term Financial Outlook (MTFO) provides the framework that underpins the budget setting process for 2024/25 and beyond.