Decision details

The Director of Finance and Digital Services provided Cabinet Members with an update on the Medium-Term Financial Plan (MTFP) for 2021/22 to 2024/25, based on current modelling assumptions in advance of formulating the detailed budget strategy proposals for 2022/23 during the autumn. 

Members were advised that the report and the accompanying ‘Medium Term Financial Plan 2021/22 to 2024/25’ sets out the current position on the financial challenges facing the Council in the medium term. The report notes, that subject to the level of funding from Welsh Government, a significant budget gap is likely to be faced in 2022/23 and for the following two years.

The Director added that the proactive strategy adopted in recent years through early identification of savings and the targeting of key areas such as new ways of working and an increased emphasis on preventative approaches could still deliver significant efficiency savings.

It was noted that the focus would switch to the 2022/23 budget strategy upon receipt of the Provisional Local Government Settlement and, as part of this, setting out a range of budget saving options to enable the Council to deliver a balanced budget for the forthcoming year.

The Cabinet Member for Corporate Services commented on the balancing act needed to be taken forward and the Welsh Government Settlement, to assist in establishing a balanced budget.  The Cabinet Member spoke of the potential funding gap which could range between 2-4%.

The Leader of the Council referenced the RSG and the implications with budget gap, pay pressure and inflation.  The Leader spoke of how recovery from the pandemic might look and the impact that this might have on the budget going forward and also referenced the lobbying be taken forward by WLGA to UK Government.

Other Members referenced the difficult decisions needed to be taken over previous years with austerity measures and thanked officers for the work taken forward with budget setting and the investment in core priorities.

Following discussions it was RESOLVED

                    i.     To note the current position modelled in respect of the ‘Medium Term Financial Plan 2021/22 to 2024/25’ and receive further updates in the autumn as part of the annual budget setting process;  and

                   ii.     To note that the MTFP will be presented to Council in September and will be reviewed by the Finance and Performance Scrutiny Committee in line with their terms of reference alongside our budget consultation arrangements.