Purpose

To provide an update to the Draft Budget and
Medium Term Financial Strategy 2024-2025 to 2026-2027; and agree
the next steps that will be taken in order to address the financial
pressures faced by the Council over the medium term

Content

1.     
That the draft budget strategy and medium-term financial strategy
which underpins Our City, Our Plan, including changes to corporate
resource assumptions, growth and inflation and budget reduction and
income generation proposals be approved.

 

2.     
That authority be delegated to the Cabinet Member for Resources and
the Cabinet Member for Job, Skills and Education, in consultation
with the Director of Finance and the Director of Children’s
Services, to approve changes to the local funding formula for
Schools including method, principles and rules adopted.

 

3.     
That authority be delegated to the Director of Finance to agree the
Memorandum of Understanding (MoU) with Government for the ten-year,
100% Business Rates Retention for the West Midlands, in accordance
with the Trailblazing Devolution Deal.

 

4.     
That it be noted that, due to external factors, budget assumptions
remain subject to change which could, therefore, result in
alterations to the financial position of the Council.  This includes assumptions with regards to the
level of resources that would be available to the
Council.   Any reduction in
Government’s allocation of funding to the Council would have
a significant detrimental impact and further increase the budget
deficit over the medium term.

 

5.     
That it be noted that it is forecast that the budget deficit is
£2.6 million for 2024-2025, rising to over £20 million
in 2025-2026 and that work would continue to be undertaken to bring
forward proposals to set a balanced budget for 2024-2025 and
deliver a sustainable medium term financial strategy whilst seeking
to maintain our ambition for the City in line with Our City: Our
Plan.

 

1.     
That it be noted that the Council has a good track record of strong
financial management. However, as a consequence of the level of
uncertainty across both demand for services and funding levels, the
overall level of risk associated with the Draft Budget and
Medium-Term Financial Strategy continues to be assessed as
Red.