Agenda item

A report from the Executive Director Resources is attached.  (Key decision – reference number 5337)

Councillor Mary Maguire (Cabinet Member for Finance & Procurement) introduced the report of the Executive Director Resources, providing an update on the Medium Term Financial Strategy and bringing forward early savings proposals to balance the 2022/23 budget.

NOTED

1.    This report was the beginning of the 2022/23 budget setting process, and brought forward early savings proposals. Pressures were challenging, and work continued with departmental managers. There were significant budget gaps, but savings put forward were realistic and achievable.

2.    Inflationary pressures and the National Insurance surcharge had been taken into account. Advice of Treasury advisors was regularly taken in respect of interest costs.

3.    It was noted that the London Business Rate Pool would not be operating in 2022/23, but Enfield had been in discussions regarding a geographical rates pool. An expression of interest had to be made by tomorrow. Cabinet were asked to agree an additional recommendation in respect of this, to give delegated authority to join in principle subject to due diligence around the risks of membership, noting the opportunity to withdraw from the pool within 28 days. It was confirmed that satisfactory governance arrangements were in place.

4.    There would be a further Medium Term Financial Plan update in December, and further savings proposals.

Alternative Options Considered: 

None, the Council is statutorily required to set a balanced budget and the report is a step towards this.

DECISION:  The Cabinet agreed to

1.    Note the late commencement of the 2021 Comprehensive Spending Review.

2.    Note the timing of the implementation of Fair Funding and the Business Rates reset.

3.    Note that the London Business Rate Pool will not be operating in 2022/23.

4.    Note the funding and spending pressures set out in the report.

5.    Approve early savings proposals of £4.966m set out in Appendix Three

            ? £4.366m from efficiencies and,

            ? £0.600m from income generation.

6.    Note the current forecast funding gap of £10.532m in 2022/23 and £44.161m across the medium term after taking the savings proposals into account.

7.    Note the anticipated ongoing investment in Adult Social Care and Children’s Services required to meet demand pressures.

8.    That subject to necessary due diligence being undertaken to assess the benefits and risks of membership:-

•  Cabinet agrees to submit an in principle expression of interest to join the smaller London business rate pool; and

•  Delegates authority to Executive Director of Resources, in consultation with the Leader and the Cabinet Member for Finance and Procurement to commit to the business rate pool should the Executive Director of Resources consider this to be in the best interest of the Council; and

•  Notes the opportunity to withdraw from the pool within 28 days following the Government’s spending review announcement.

Reason: 

The Council has a statutory duty to approve a balanced budget for 2022/23 in February along with consideration of the finances over the medium term and the Council’s reserves and balances. It is essential that there is a clear understanding of the anticipated income and expenditure flows for the Council, despite the uncertainties, and for proposals for savings to come forward early to ensure full delivery from 1 April 2022 or indeed to also contribute to addressing the financial pressures in 2021/22.

(Key decision – reference number 5337)