Council’s Medium Term Financial Plan open for consultation

Published: 22 December 2021

On Tuesday evening, the Council’s Cabinet approved a public consultation on the Council’s Medium Term Financial Plan (MTFP) for 2022/23 to 2024/25 and Council Plan.

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 remains difficult decisions to make to ensure the financial resilience 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 was 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 Thursday 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 with citizens on an increase in Council Tax for next year of 1.99% for Council Services and an additional 1% Social Care Precept.

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 a limited effect 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 also been issued for consultation alongside the MTFP.

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

“We’re really keen to hear from residents on the proposals in our MTFP and Council Plan. These two documents will shape how services are funded and operate for the people of Derby over the next three years.

We acknowledge that there are some difficult decisions ahead, given the current economic situation, and it’s important that residents are part of those conversations.

The easiest way to take part in the consultation is online but paper copies will also be made available along with other accessible formats so that no one is excluded from having their say.”

As part of the city’s plans to become more ambitious, Derby City 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.

This year’s consultation will run from Wednesday 22 December 2021 until Friday 28 January 2022 for citizens to have their say. To take part visit the Let’s Talk Derby website.

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.

Take part in this year’s Budget Consultation today on the Let’s Talk Derby website.

Consultation