Agenda item

To consider a report by the Director for Sustainability and Resources, copy attached as item 13

Before the Committee was a report by the Director for Sustainability and Resources, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 13.

Since 2010, the Councils had adopted and delivered a financial strategy aimed at removing dependence on central government grant support. Despite the largely successful delivery of this strategy, it had become increasingly difficult for the councils to continue to deliver service efficiencies, returns on investment, income growth and maintenance of public assets year after year, while also continuing to provide the wide range of day to day council services which are under ever-increasing pressure, for example from rises in demand for housing support.

In recent years the growing gap in the strategic financing of local government had been significantly accelerated by multiple shocks and pressures, not least the pandemic, inflationary pressures, the cost of living, housing and climate change crises. These additional pressures had been addressed only very partially by additional government support in some areas, and councils had been forced to absorb these additional costs, creating significant strain on its dedicated workforce

The joint “Our Plan” strategic framework enabled the delivery of both Administrations priorities and is supported by the councils’ financial strategy, designed to provide a stable funding environment aligned to those priorities, maintaining core service delivery and managing key risks.

The report before members introduced new core principles and key goals which would be embedded across the councils’ key strategic areas, helping create a coherent, more joined-up and resilient long term approach.

The report outlined a set of strategic reviews underway that were aimed at delivering better long term strategic direction in key areas, enabling more coordinated and realistic programmes of activity. The reviews would carefully assess and prioritise work, testing alignment to Administration priorities and creating more focused programmes. In some areas this could require a shift in delivery approach, such as housing supply or major projects, to enable delivery of outcomes with less risk and cost.

Decision

1)     That the new strategy be adopted and the delivery dates for the related strategic work and updated Medium Term Financial Strategy be noted. The key decisions in the new strategy are:

a.     That the principles outlined in section 1 which will then be applied to the connected strategic reviews listed at 1.1 be agreed

b.      That the change in the approach to developing the capital programme and the subsequent implications of this with respect to a smaller capital programme in the short term be agreed

c.     That the development of a proposition development team to pursue external funding to mitigate current funding pressures and accelerate strategic work be agreed

d.     That the approach for the update of the asset strategy which will simplify the portfolio and align it with administration priorities as well as building a bigger property resource be agreed

2)     That the significant financial risks which the Council faced which the strategy will mitigate but not eliminate be noted

Call In:

The call-in deadline for the decisions will be 5.00pm on 29 July 2024