The Director of Finance introduced this report, the purpose of which was to provide an update on the current progress and developments in budget setting activity for 2025/26 and beyond.

The Council is required to set a balanced budget each year and set a Medium-Term Financial Plan (MTFP) which considers the future pressures and savings options that will be taken forward to result in a balanced budget position. The Council faces a severe budget challenge to identify savings required to set a balance budget for next financial year, largely due to increased demand and costs for social care services, compounded by the previous significant reductions in Government funding and uncertainty around the future financial settlements.

Unless significant deliverable cost reductions were identified and approved, the Council would not meet its statutory obligation to set a legal and balanced budget without a significant increase in funding. The report provided an update for the Committee on those budget areas within its remit and across the Policy & Service Committees.

Members reiterated the need for consultation and informing residents of the gravity of the budget deficit, requesting that any public consultation is as accessible to all. Members further discussed the budget proposals and timelines of these. 

Resolved – That,

1.  the indicative resources, pressures and required savings detailed in the report be noted.

2.  That Policy & Service Committees undertake budget workshops (via the Budget Oversight Panels) during December to review savings proposals and mitigating actions, with a view to feeding back the outcomes of the workshops to this Committee.

3.  That the Director with portfolio, in consultation with the Finance Working Group, be authorised to undertake any required service consultations that are linked to budget policy options being brought forward, in line with the timetable to enable a budget recommendation in February 2025.