Report of the Deputy Chief Executive and City Treasurer attached

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which sets the strategic and financial context which supported the 2022/23 Budget.

A Medium-Term Financial Strategy report to Executive in February 2021 included a three-year budget forecast, indicating an annual shortfall in the region of £40m a year from 2022/23. This was based on assumptions of a flat government settlement and cost pressures including inflationary increases and demography.

As reported to Executive on 17 January 2022, the settlement was at the positive end of expectations. It provided additional unringfenced funding, increased Social Care Grant and additional one-off resources through the continuation of New Homes Bonus.  The additional funding announced, alongside the proposed savings and mitigations of £7.7m previously proposed would enable a balanced budget to be delivered in 2022/23.

The Medium-Term Financial Plan and Capital Strategy had been updated to reflect the 2022/23 budget position including the current and anticipated financial impacts of the COVID-19 pandemic.

The report went on to set out the strategic and statutory context for setting the budget, which includedg:-

·                The Our Manchester Strategy;

·                Progress to date on delivering the Our Manchester Strategy, building on the recent State of the City analysis;

·                The Corporate Plan;

·                A summary of the financial position and context;

·                The required statutory assessment of the robustness of the proposed budget and adequacy of proposed reserves;

·                Other fiduciary and statutory duties; and

·                Financial Governance.

Decision

The Executive note the Medium Term Financial Strategy 2022/23 and 024/25