Agenda item

To consider report FIN/583 of the Head of Corporate Finance.

The Commission considered report FIN/583 of the Head of Corporate Finance.  The report set out financial projections with particular reference to the period 2023/24 – 2027/28. The report set out the policy framework for improving financial efficiency and meeting the long-term investment needs of the Town, as well as proposals for the annual budget process.

The Commission received clarification on a number of points within the report during the discussion with the Leader of the Council, Head of Corporate Finance and Chief Executive.  Councillors made the following comments:

·         Acknowledgement that the Council’s projected budget deficit was higher than previously anticipated due to the impact of increasing inflation, increased homelessness costs, future Council tax and Business rates income projections and impact of the cost-of-living crisis on other income sources such as fees and charges.

·         Recognition that the financial pressures were extensive and that the Corporate Management Team had undertaken a series of budget challenges that had resulted in savings both in year and future years to help mitigate these pressures.  Acknowledgement that there was a need to strike a balance between competing priorities. Whilst the Council was currently benefiting from interest rates, there was a need to factor in other areas such as the reduction in national insurance. 

·         Concern expressed that the biggest demand for support was homelessness as there was a projected overspend on temporary accommodation in the current financial year, with the total annual budget spent in the first quarter. The current year budget was £900,000 with an estimated year end spend of £2.8m.  It was anticipated that the situation would remain or increase as a result of the cost-of-living crisis.  The Council had many forms of advice, support and signposting on offer. It was felt that these, along with the ‘duty to refer’ needed to be monitored in order to gauge future projections.

·         Recognition that the budget for the 2022/23 pay award had an allowance for 2%, the projected overspend was at least £800,000.

·         Clarification sought and obtained on the valuation of Telford Place car park.

·         It was noted the costs of the Council’s commitment to Climate Change had not been factored into future budget projections as some of the work had yet to be scoped.

·         Confirmation that assumptions for the new Town Hall would be updated.

·         Acknowledgement that budget modelling for future years was difficult and whilst individuals’ household income had been affected, the Council’s income streams were likely to continue to be impacted by any longer-term downturn in the economy and any future outbreaks. The cash flow and budgetary impact on the Council would be significant. There continued to be a growing gap between funding and service pressures, driven by demographic change and placing additional pressure on Council services.

·         Members of the Commission commended officers from the Finance Team for their work in producing finance reports and dealing with challenging issues.

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.