Cabinet to consider Council’s Medium Term Financial Plan for consultation

Published: 17 December 2021

Council house rear and River Gardens

Cabinet will meet to discuss the proposals in the Medium Term Financial Plan (MTFP) for 2022/23 to 2024/25.

On Tuesday 21 December, the Council’s Cabinet will meet to discuss the proposals put forward by Council Officers in the Medium Term Financial Plan (MTFP) for 2022/23 to 2024/25.

Each year, the Council must produce an MTFP with a balanced budget which details how and where its finances will be spent on the public services it provides. Following a tough two years dominated by the COVID-19 pandemic, there are difficult decisions to make to ensure the financial stability of the Council. Like many Local Authorities, savings need to be made to ensure the Council has a balanced budget.

This year, the budget setting process has been made more difficult due to the complexity and late arrival of the Government’s financial settlement. This tells the Council how much of its budget will be provided by central Government in the form of grants. The provisional finance settlement, announced on the 16 December, provided an additional £10.9 million of Government funding for next financial year. This included £1.1 million New Homes Bonus and £3/4 million to allow the Council to prepare for the Social Care Reforms recently announced by the Government.

The Council is consulting on an increase in Council Tax for next year of 1.99% for Council Services and an additional 1% Social Care Precept.

At the meeting, Cabinet will be asked to approve a statutory public consultation on the MTFP and Council Plan, which allows local residents to have their say on Council’s priorities and how it spends its money and the proposals in the MTFP.

The Budget includes savings and income proposals of £13 million for next year. These focus on prioritising resources and reducing costs to those priority outcomes detailed in the proposed Council Plan. The Budget proposals seek to minimise impact of changes to front line services and will have limited the impact on the Council’s workforce.

Despite the challenges bought on by increasing demands for services and the pandemic, Derby City Council remains ambitious in its plans for the city, as reflected in the updated Council plan which has will be issued for consultation next week.

Cllr Jonathan Smale, Cabinet Member for Finance, Assets and Digital Services, said:

“Against the backdrop of increasing demands following the pandemic and increasing costs within the Economy the Council has worked hard to plan for a balanced budget for next year and improved financial sustainability in the medium-term. The Budget proposals seek to deliver shared outcomes for and with the city supported by significant change programmes to improve the effectiveness of services and to work with communities and partners in developing new service models.

We have looked across the Council for efficiencies and savings and despite the size of the financial challenge facing councils, we have managed to minimise job losses and protect many services that residents value.

Planning for the future to help balance the budget is our priority and will help support the city to be more ambitious and inform our strategy for future years.”

The Council is proposing a three-year Capital investment programme of £ 291 million, including the opening of the state-of-the-art Moorways Sports Village next Spring. Over the past year the Council approved major investment in a Performance Venue at Becketwell, job creation at SmartParc in Spondon and £69 million of transport investment through the Transforming City Programme. Over the next three years the refurbished Market Hall will reopen and further investment will be made in our flood defences and riverside redevelopment.

Cllr Chris Poulter, Leader of Derby City Council, said:

“There is increasing confidence from investors and the Government in Derby.
Our ambitious Capital Investment Programme over the next three years builds on the significant investments we’ve made in recent years. Our programme balances regeneration and economic proposals, alongside investment for our citizens.”

The new proposed Council Plan 2022 - 2025 will be issued for consultation alongside the Medium Term Financial Plan 2022/23 to 2024/25 on Wednesday 22 December with residents able to comment on the proposals until Friday 28 January 2022. Residents can also view the Council Plan 2022-2025 on a page.

Subject to the consultation, the Council Plan and MTFP will be adopted by Council at the end of February 2022.

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