Agenda item

The Leader introduced a report updating Members on financial pressures facing the Council for the period 2024/25 to 2028/29 in respect of the Medium Term Financial Strategy.

This had been debated at Full Council last week.  An Efficiency Board Savings Committee would be held and its findings brought to this Committee at a later date.  

Some of the challenges included inflationary costs, Temporary accommodation and the national pay award.   The Portfolio Holder for Finance, Town Centres and Growth would be writing to the local MP’s and the Government emphasising the challenges with temporary accommodation and the pay award.

Councillor Brockie said that it was stated that the shortfall in view of the outlined costs would be offset in full by favourable variances – one being the interest on the Town Deal and Future High Streets Fund noting the recent interest hikes as a potentially transient means of offsetting the risks along with the cost of living reserve which, it was suggested would fully offset the forecast pay award.  How sustainable was this and did the Council have reserves to contend with the major risks that were involved with meeting obligations.  A lot of projects were escalating in cost and none of the construction costs were likely to reduce.  Some projects were essential to the economic wellbeing of the town.  Could the Council be open minded about what would bring about the regeneration that the Government funds were received for.  Some carefully managed asset disposal would be helpful but assurance was required that the Council would realise enough to proceed with its plans safely.

The Leader stated that he was proud of the reserves that this Council had built up over the last few years and had managed to maintain them, despite the legal action taken over Walleys Quarry.  With regard to delivering the regeneration programme, it had been looked into to deliver it in a different way, bringing in Capital and Centric on the York Place and Midway developments.  This approach could also be looked at for the Ryecroft site. Regarding the bringing in of money from assets, £6.1 million had been brought in from key services over the last few years

Councillor Waring stated that one of the large pressures this Council had was the temporary accommodation for vulnerable residents.  Had any outside funding been received for this.

The Leader confirmed that there was a funding stream from the Government but it was not enough to pay for the entire cost of the accommodation.  There was a gap that had continued to grow which was the reason for the letter to the Government that had been mentioned earlier.  The Council needed to get full reimbursement, otherwise it would put stress onto the Council budgets

The Chair requested that any letter of response from the Prime Minister/Government be brought to this Committee for comment.

Resolved:     (i)         That the funding pressures of £2.751m in 2024/25 and

£5.082m over the 5-year period covered by the Medium-Term Financial Strategy (MTFS) be noted.

(ii)        That the approach regarding the development of savings

and income generation proposals in the medium-term be noted.

(iii)       That the continued uncertainty regarding the medium-term impact of local government funding and the Cost-of-Living crisis be noted.

(iv)       That the Portfolio Holder for Finance, Town Centres and

Growth would be writing to Central Government and Local MP’s to lobby for funding to assist with the additional pressures in respect of the national pay award and temporary accommodation be noted.

Watch the debate here