The Director of Finance presented the report which set out progress made by the Council to deliver a balanced budget.

The Council was required to set a balanced budget each year and set a Medium-Term Financial Plan which considered t future pressures and savings options that were taken forward to result in a balanced budget position.

The report was an officer assessment of the capability of achieving balance and did not address itself to, nor pre-empt, the political decision making that must properly take its course moving forward including consideration of the Budget at Policy & Resources Committee and Full Council in February 2024.

The Council faced a challenging financial outlook due to inflationary and demand pressures alongside the previous significant reductions in Government funding and uncertainty around the future financial settlements.

The Council was developing a change programme which supported delivery of the medium-term financial plan and expected savings required to deliver a balanced budget. Members were informed that the Change Programme was aligned to the overall priorities within the Council Plan, focussing on delivering operational efficiencies and better outcomes for residents through promoting independence and improving outcomes.

Members queried whether income could be generated from recently acquired assets the Europa Centre, the Grange and the Pyramids, as well as holding costs associated with assets that are no longer in use to due to be transferred under that Community Asset Transfer process. Assurance was made that the pressure caused by the closure of the Wilkinson’s site within the Europa Centre and loss of rent was being mitigated by the sale of profit-making council assets. With regard to the Grange and Pyramids sites, Members were informed that any profit from was ringfenced in a sinking fund which could be used to mitigate any pressures caused by running retail sites.

Also discussed were the costs of ensuring that Real Living Wage be paid to care workers. Assurances were made that this was being worked through by the Director of Adult Social Care and would factor in inflationary pressures. In response to a query about repayment of the Capitalisation Directive, Members were assured that repayment was assessed annually and relied on capital receipts for sale of assets were received.

Resolved – that the indicative resources, pressures and required savings as detailed in the report be noted.