Agenda item

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which presented the mid-year review of the Medium Term Financial Strategy (MTFS) which ran to 2025/26. This had been undertaken as a matter of good practice and in the context of the unprecedented inflationary and demand pressures being experienced so far this year.

The review indicated a provisional budget deficit of £29.204m in 2023/24; a further gap of £3.475m in 2024/25 and a further £5.866m in 2025/26, and the report set out a range of options to address this deficit as a basis for consultation with affected stakeholders. Members noted this was a challenging picture but was one being faced by Councils across the country. Cross-party concerns were being raised nationally, and the response from the Government through the settlement figures expected in December would be crucial.

Members discussed the information and, in response to Members’ questions, the following was noted:

·         Sufficient strategic capacity was important in ensuring the Council could run efficiently, but despite proposed reductions Chief Officer pay would remain competitive and was only one of Bury’s attractions as an employer.

·         Rationalisation of buildings was a complex project and was progressing more slowly than expected. The balancing act of where to accommodate people and services was complicated, and it was noted that sale prices would also be affected by current utility costs and inflation.

·         Savings being made to strategic finance had been realised through the careful line-by-line review of budgets. Some savings were only achievable now that skills and capacity had been developed in a number of teams, and also through the maturation of longer term workplans and strategies.

·         Transformational changes were progressing, and the adaptability of staff demonstrated the relevance of internal transformation still to come.

·         It was agreed that fly tipping and was a problem but increases to commercial waste management costs were rising to meet the rise in operating costs from inflation rather than trying to secure a profit.

·         The Council worked closely with community groups in the borough, and the Let’s strategy supported more liaison with the community as they were often better placed to offer help and support to residents. This was not an attempt for local groups to pick up Council work, but a different and more efficient way of working that had been part of long-term plans since before Covid.

·         The Council was exploring options regarding the service offer from the art gallery and costs would be considered as part of this, however outcomes were currently unknown as the options appraisal was still ongoing.

·         With regards to management structures, proposals agreed with the budget papers last year agreed to move to a flatter structure, with reductions in the number of managers needed and the number of levels of management, and this was progressing.

·         It was noted that staffing impacts were across the Council, not just frontline staff, and would be subject to full consultative processes.

Decision:

Cabinet:

1.    Approved the updated medium term financial strategy and the assumptions regarding resources and spending requirements, as of October 2022. It should be noted that this information does not yet include the national Local Government settlement which is expected in December 2022.

2.    Noted the projected budget gap of £29.204m in 2023/24 a further gap of £3.475m in 2024/25 and a further £5.866m in 2025/26.

3.    Approved the commencement of public consultation in relation to the proposals as set out in Section 5 and Appendix 3 of this report.

4.    Noted that staff will be consulted on the proposals as set out in this report and service specific consultations will be phased as detailed proposals are developed.

5.    Noted that there is still a remaining gap in the 2023/24 budget and that further work will continue to close this, before the final budget proposals are made to Members in February 2023.

Reasons for the decision:

It is a legal requirement that all local authorities set a balanced budget before the start of each financial year. It is also a requirement to consult on service closures and changes and, in order to do this in advance of decisions being made, consideration needs to be given as to which of the savings proposals this affects. Early and iterative planning is essential for the Council to proactively respond to the financial challenge in future years.

Alternative options considered and rejected:

Officers and Members have undertaken significant work over the past six months to review all areas of potential savings and bring forward proposals which, insofar as is possible align with the Council’s strategic objectives as described in the LET’S Do It! Strategy.