Issue - meetings

Purpose: the report sets out the financial planning assumptions for coming financial years of the Medium Term Financial Strategy (MTFS) for 2024-28. The purpose is to provide members of the Executive with the latest financial planning assumptions and for the Executive to consider any implications for the future year’s budget. The financial context is crucial to understand the requirement for future decision making.

Resolved that Executive:

·         Approve a consultation exercise on the specific budget proposals identified within the report at para 5.25.

·         Note the report and consider the implications of this for the final budget papers in February 2024.

This decision is not subject to call in as:

·      the item is due to be referred to Council for final approval.

·      a delay in implementing the decision this would cause the Council serious financial implications or could compromise the Council's position.

therefore it will be implemented immediately.

Councillor Iain Cottingham introduced and proposed a report (Agenda Item 3), noting that the Council was facing financial pressure in both the current year and the forthcoming year of 2024/25. Councillor Cottingham noted that a rigorous process had been undertaken to identify areas of efficiency and cost savings to reduce the financial deficit and these were outlined within the report. It was noted that a number of the proposed savings required public consultation, which, if agreed, would take place between 27 November 2023 and 11 January 2024. 

Councillor Ross Mackinnon commented that Table 1.3 of the report forecast £7.3m of savings that did not require consultation but did not provide many specific details and queried whether any of the savings were from Councillor Tony Vickers’ portfolio. Councillor Vickers responded that he was not aware of any savings.  

Councillor Lee Dillon clarified that full details of all savings would be provided at the Budget Council meeting in 2024, and that the current report was intended to publicise those savings that required consultation. 

In response to a query from Councillor Mackinnon, Councillor Cottingham clarified that parking fees would be re-structured upwards.

Councillor Mackinnon queried whether the Executive would assure the public that they would not proceed with certain savings if the consultation findings presented significant opposition. Councillor Dillon commented that the Executive would not pre-empt the findings of any consultation but would consider any views expressed. 

Councillor Mackinnon referred to a proposal to reduce funding for bridge maintenance and suggested that this would have an impact on the safety of residents. Councillor Dillon provided assurances that none of the proposals would put residents at too great a risk. 

Councillor Dominic Boeck queried what proportion of the £1.3m commercial property portfolio revenue would be used for capital for transformation projects. Councillor Cottingham responded that the Executive were looking to dispose of two assets, one from the Commercial property portfolio, and another owned in West Berkshire. He noted that Councillor Howard Woollaston would have sight of the estimate values, which would be discussed at a meeting of the Property Investment Board the following day. 

Councillor Boeck noted that current revenue was £1.3m per annum. He queried if the entire portfolio was sold, what proportion would be allocated to transformation. Councillor Boeck commented that at present the £1.3m was assured, but that any money put into transformation would not create assured revenue. Councillor Cottingham responded that consultants had advised that the market average receipt value was 70% and that if revenue fell to that amount, it would only just cover the cost of servicing the debts, the interest and capital repayments, and the cost to protect the assets. As a consequence, the Executive were looking to divest of the assets from a risk perspective. It was noted that potential transformation projects which were anticipated to deliver had already been identified.

Councillor Jo Stewart noted the proposals relating to Adult Social Care that were going to consultation and requested that residents be made aware of  ...  view the full minutes text for item 3