Decision details

This report provides an update on the Council’s 5-year financial forecasts following the global pandemic.

The report gives the Executive the opportunity to consider the Council’s 5-year financial forecasts as set out in the Medium-Term Finance Strategy (MTFS) following the setting of the budget 2021/22 at the January Executive.

The impacts of COVID-19 have affected many areas of the Council’s finances during 2020/21 and these have continued through to the current financial year.  In light of the changes a new table of figures highlighting the effects of the pandemic and other operational changes has been compiled and the effects of this going forward over the strategy period is shown in the table below:

The detailed report highlights the main spending pressures affecting the budgets and also opportunities taken to close the budget gap.

5-Year Financial Forecasts

The 5-Year financial forecasts for 2021/22 to 2025/26 are predicting a funding shortfall for all years with reserves being used to ensure a balanced budget in 2021/22.  The Opportunities Plan approved last year is still predicted to address some of the shortfall and build in some capacity for future pressures and uncertainties.

RESOLVED that the Executive approves the Medium-Term Finance Strategy for the period 2021/22 to 2025/6, as set out at Appendix A to the report.