Issue - meetings

Cabinet discussed the proposals for the new Medium Term Financial Strategy for 2021-25 and acknowledged the effect of Covid-19 on the public finances which had been considerable, as it created the largest peacetime shock to the global economy on record.

The pandemic had affected the collection of council tax and business rates. In response, the business rates relief and grants for businesses in the retail, hospitality and leisure sectors had been administered in line with government guidelines helping more than 3,000 businesses in Thanet, through allocating more than £40m of financial support. Additional council tax relief had been given to recipients of council tax support through the government’s hardship fund. 

The government funding reforms that had been in development have been deferred for various reasons, one of which was the pandemic. The implications of this review for Local Government are uncertain, but have the potential to be profound.There are also inflationary pressures of over £800,000 each year, which could not be covered by increases in Council Tax and fees and charges alone. A budget gap of £1.7 million in 2022-23 and another £700,000 in 2023-24 was anticipated. The Housing Revenue Account was under some similar inflationary pressures as the General Fund.However, the HRA is projected to return to surplus in future years, thereafter.

The proposed MTFS would aim to achieve the three key corporate priorities, which are Growth, Environment and Communities. Alongside the Corporate Statement were a number of other service-related plans that included the Housing Revenue Account (HRA) Business Plan, individual service plans and capital and asset management strategies. The proposed MTFS would provide a key link between all of these plans. It underpinned these other strategic documents by translating the plans, actions and non-financial resources into financial terms so as to evidence their affordability and sustainability.

Councillor Yates proposed, Councillor Albon seconded and Cabinet approved the Medium Term Financial Strategy 2021-25.