Issue - meetings

Medium Term Financial Outlook

 

 

Meeting: 27/08/2024 - Cabinet (Item 5)

5 Medium Term Financial Outlook 2024-2029 pdf icon PDF 390 KB

Minutes:

Background:

 

This report set out initial projections of the Council’s income and of the cost of services for 2025/26 and across the medium term.

The report provided details of initial projections which indicated a potential budget gap for 2025/26 of £28.844million, or £45.147million excluding Exceptional Financial Support (EFS). This cumulative projected gap rose to £114.205million across the medium term (£140.807million excluding EFS in 2025/26). Difficult decisions would be needed to ensure that the Council spent money and generated income efficiently.

 

Progress in reducing the projected gap would be reflected in the Draft Budget 2025/26 which would be presented to the Cabinet in November 2024.

It was noted that the new Government had highlighted the prospect of additional powers and resources being granted to local authorities. While the Council was keen to explore what this could mean in practice, Medway would not want to see the creation of an elected Mayor of Kent and Medway or for there to be local government reorganisation in Medway.

Decision

number:

 

Decision:

 

 

 

 

The Cabinet noted the initial projected budget requirement, the Council’s resource assumptions, the resultant draft projected budget shortfall for 2025/26 of £45.147million and a cumulative £140.808million shortfall over the medium term.

108/2024

The Cabinet agreed the indicative 2025/26 directorate resource envelopes, as set out at Appendix 9b of the 2024/25 Budget report and in table 1 of the report, which assumed a further application for ‘exceptional financial support’.

The Cabinet noted that directorate management teams would work with Portfolio Holders to identify savings and income generation proposals in order to balance the 2025/26 budget within the directorate resources envelopes.

Reasons:

The Medium Term Financial Outlook (MTFO) provides the framework that underpins the budget setting process for 2025/26 and beyond.