Issue - meetings


Meeting: 15/11/2023 - Cabinet (Item 12)

12 MEDIUM TERM FINANCIAL PLAN (2024/25 TO 2028/29) pdf icon PDF 494 KB

A report from the Executive Director - Resources is attached.  (Key decision – reference number 5681)


Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, setting out new savings and income proposals and budget gap details. The financial plan summary 2023/24 to 2026/27 was set out in Appendix A of the report. New departmental savings and income proposals were highlighted, and proposed Council Tax increase and Council Tax support scheme changes.


It was recognised that the budget gap at this point in the cycle was larger than in previous years, but there was confidence that the gap would be closed by the time of the final budget in February. A further update would be brought to Cabinet in January.


In response to Members’ questions regarding under-funding of Enfield, it was advised that there had been lobbying by officers, councillors and by London Councils to the government. A report of the Institute of Fiscal Studies showed that Enfield was the seventh most under-funded authority and the funding deficit was 25%.


DECISION:  The Cabinet agreed to:


I. Note the progress towards balancing the budget for 2024/25:

  · As of September 2023, the estimated gap was £39.4m in 2024/25, prior to any increase in Council Tax, revision to the Council Tax Support scheme, savings and any additional Government funding. The gap across the medium term to 2028/29 was £118.6m, primarily driven by high inflation, demography, an unprecedented increase in Temporary Accommodation costs, arising from a lack of available property, and increasing capital financing costs as interest rates continue to rise.


II. Agree in principle the proposed savings and income of £9.2m in 2024/25 put forward by departments as shown in Table 3 of the report. Further details of the indicative proposals are set out in Appendix C of the report:

  · £6.1m from service redesign, efficiencies and demand management

  · £3.1m from income generation.


III. Note that these savings and income proposals, or suitable alternatives, should be delivered as soon as practically possible and, if appropriate, in the current financial year.


IV. Note the estimated potential reduction in the budget gap of £14.6m if Council Tax (including ASC precept) is increased by 4.99% and the proposed Council Tax Support scheme changes are implemented.


V. Note that the budget gap would, therefore, reduce from £39.4m to £15.6m. Ongoing review of the cost pressures and growth and further savings and income generation remains in progress to be updated in January 2024 Cabinet. These forecasts are subject to a significant number of variables and estimates and are highly likely to change, but nevertheless represent officers’ best estimates at this time.


VI. Note that in addition to the 2024/25 budget gap, there is a forecast £28m overspend in 2023/24 and Executive Directors and officers are attempting to implement mitigating actions to reduce the in-year overspend.


VII. Note that Enfield has expressed its interest to DLUHC to continue with the smaller Business Rate Pool of eight London boroughs for a further year into 2024/25.


VIII. Note that this report is written prior to the government’s Autumn statement due  ...  view the full minutes text for item 12