The Director of Resources introduced the report which provided an update on the 2023/24 budget position following changes to the assumptions made and presented to the Committee in March 2022. The changes had arisen as a result of the national picture of high inflation and rising costs which were impacting on the budget gap, causing it to increase significantly for 2023/24. The report set out the work already undertaken as well as the need for further work to develop the 2023/24 budget in order to urgently mitigate the gap.

The Director of Resources outlined that the Council was in a good position to meet the original 2023/24 budget gap of £14m prior to the changing macro-economic position, which had since increased the 2023/24 budget gap to £49m and put pressure on the delivery of the 2022/23 budget. The breakdown of the additional budget pressures was outlined to the Committee which included £12.9m for increased demand and cost of adult social care, £10m increased utility costs, £9.9m for the staff pay award, £5.5m increased cost of children’s residential placements, and £3.5m of reduced income for leisure services. Members were advised that these additional pressures were being reviewed by the Senior Leadership Team and would be further considered by additional Policy and Services Committee budget workshops.

The report proposed the commencement of a high level pre-budget consultation to gain the views of Wirral residents, the outcomes of which would be reported back to Policy and Resources Committee alongside the outcomes of the further Policy and Services Committee budget workshops.

The Interim Director of Finance provided an overview of the national and international economic position and how this would impact on the Council’s budget. Members were advised on the rate of inflation interest rate and how this had impacted on the Council’s borrowing costs, as well as the Government’s mini-budget and the consequential need to take a prudent view on the expected level of government assistance.

The Committee discussed the report in detail and considered how the £49m budget gap would be met, where the cost to only provide statutory service was sought. A further debate ensued on the proposed pre-budget consultation and the appropriateness of consulting on the budget position before the level of government settlement was known.

Resolved – That

(1)  the work undertaken to date to deliver the 2023/24 budget be noted.

(2)  the revised 2023/24 budget gap and the factors contributing to this be noted.

(3)  it be noted that officers will work up a further package of policy options to meet the revised budget gap, with Members engaged via the Group Leaders’ Budget working group and a further round of budget workshops with Policy & Services Committees.

(4)  the Chief Executive be authorised, in consultation with the Chair and Group spokespersons, to undertake a pre-budget “have your say” consultation, setting out the scale of the Council’s 2023/24 budget challenge and inviting residents to offer their views on the prioritisation of Council Services.

(5)  the outcomes of the pre-budget “have your say” consultation be reported back to a future meeting of the Policy & Resources Committee as part of the budget setting process.