Agenda item

A report by the Director of Finance and Support Services setting out the planning process for updating the Council Plan and Medium Term Financial Strategy to support business and financial planning over the next five years.

The Committee is asked to scrutinise the report on the Council Plan and Medium Term Financial Strategy.

18.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

18.2     Summary of responses to Members’ questions and comments: -

·           The statutory override for the Dedicated Schools Grant deficit will remain off the Council’s balance sheet until 2025/26 - the impact of inflation and costs of Education, Health and Care Plans (EHCPs)/school transport may increase the overspend

·           The general reserve was reviewed last year and increased to 5%. It will be reviewed each year taking into account service pressures to ensure it remains at a sufficient level.

·           Action – The Director of Finance and Support Services to check the impact of a 1.99% increase in council tax from 2025/26

·           Reserve levels will be reviewed and replenished over a five-year period and forms part of the budget setting process

·           The Council wants to move towards a longer-term view of the financial position due to the continuing pressures in adults and children’s social care which need to be planned for

·           The Council uses the September forecast for price inflation as it is when it starts to set the budget and it is often the index used in its contracts. Price inflation will be monitored till December as budget papers then have to be finalised before going to Cabinet in January

·           The Council closely monitors the number of children with special educational needs and disabilities and is investing in Special Support Centres and a new special school in Worthing

·           The report mentions Value for Money (VFM) in a number of places, the committee would welcome more information on what this means for the Council as a whole and how it is assessed and monitored.

18.3     Resolved – that the Committee: -

                i.       Welcomes the report and in particular the inclusion of extra information in relation to financial resilience and sustainability which it had requested

               ii.       Continues to raise concerns over the level of the Dedicated Schools Grant deficit and the resulting impact on the wider budget and welcomes officers continuing to discuss this with Government in terms of the way forward in future

             iii.       Welcomes the review of reserve levels as part of the ongoing budget process

             iv.       Recognises the on-going service pressures and how these will be taken into account in the longer-term financial planning

               v.       Welcomes the longer-term approach to the budget and Member engagement

             vi.       Recognises the number of assumptions that need to be used and that these will be monitored and adjusted during the budget process

            vii.       The Committee’s Business Planning Group to consider a review/look at value for money