Issue - meetings

Medium Term Financial Plan 2024-28

Meeting: 11/01/2024 - Cabinet (Item 76)

76 2024-28 Medium Term Financial Strategy pdf icon PDF 314 KB

Report to follow

Additional documents:


Cabinet received the report on the Medium Term Financial Strategy (MTFS) which provided an integrated view of the whole of Thanet District Council’s (TDC) finances.  This covered the General Fund revenue and Capital budgets along with the HRA Revenue and Capital budgets, setting out its strategic approach to these; risks to be managed and the policies to be applied over the period 2024-2028. It also covered indicative budgets and Council Tax for the medium term. Whilst the report was focused on the Council’s future financial position, it was helpful to look back at past circumstances.


Members noted that clearly there was great uncertainty as to what form local government finance would take over the medium term, let alone the shape of the macroeconomic environment. Nonetheless, the Council continued to prudently identify longer-term budget savings, which could be implemented if and when necessary to close the forecast budget gaps as presented within the report. The key assumption in place under this central forecast was that the reform of the local government finance system was implemented in 2026/27, resulting in:


?  Funding allocations being broadly the same in 2025/26, including one final year of NHB at £228k;

?  That business rates baselines and related compensation funding remain at current levels and are increased by inflation;

?  No core grant funding (RSG, NHB or otherwise) allocated from 2026/27 onwards with a consequent £1.365m loss of funding;

?  A reset of the business rates systems in 2026/27, leading to a loss of £1.6m in accumulated growth.


Other key assumption applied include:


?  Continued high inflation and stagnant economic growth at least into 2025/26;

?  Consequent 3% pay award assumed in the later years of MTFS;

?  Financial pressures on the Homelessness service remain high;

?  That the Council Tax referendum limit is 3% in 2025/26 and then 2% afterwards and that the council sets council tax at these limits (as per government funding assumptions);

? The Council tax base grows about 2% in each of the following three years of the MTFS;

? Significant borrowing repayments associated with the financing of the capital programme, including budget provision for electrification of refuse collection vehicles.


Councillor Yates proposed Councillor Duckworth seconded and Cabinet agreed the following:


1.  That the 2024/28 MTFS be agreed and referred to Council for Approval.