Agenda item
[10.05-10.20] Revenue Budget Update
Report of Deputy Chief Executive and City Treasurer
This report sets out the latest forecast revenue budget position, and the next steps.
Each scrutiny committee is invited to consider the current proposed changes which are within its remit and to make recommendations to the Executive before it agrees to the final budget proposals 15 February 2023.
Minutes:
The Committee considered the report of the Deputy Chief Executive and City Treasurer that set out the latest forecast revenue budget position, and the next steps.
Following the provisional finance settlement announced on 19 December the Council was forecasting a balanced budget for 2023/24 and 2024/25. The risk had moved to the next spending review period 2025/26 where a shortfall of £57m was forecast. This reduced to £40m after the proposed use of £17m smoothing reserves.
The report further described that in November 2022 scrutiny committees were presented with cuts and saving options totaling £42.3m over three years for consideration. The provisional settlement on 19 December reflected a change in government policy and provided more funding than initially expected. This had given the opportunity to review the quantum and phasing of savings. It was now proposed that options of £36.2m were progressed. The settlement also gave some scope for targeted investments which would put the council in a more sustainable position to face the next spending review in 2025.
The Executive Member for Healthy Manchester and Adult Social Care reiterated the need to consider the suite of budget reports in the context of more than a decade of austerity and repeated cuts to funding. He stated that, despite the lack of appropriate funding for NHS Services and Adult Social Care, both nationally and locally, Manchester Council had remained committed to supporting the most vulnerable residents in the city. He also paid tribute to the work of the City Treasurer, the Deputy City Treasurer and the officers for bringing forward these reports.
Some of the key points that arose from the Committee’s discussions were: -
· Thanking the Executive Member and officers for their continued work to support the residents of Manchester and supporting the key priorities identified;
· Commenting that the decision to delay future cuts to local authority budgets was a cynical move by the Government, noting the timing of the next General Election;
· Request that any Adult Social Care charging be handled sensitively; and
· Noting that Steve Barclay, the Secretary of State for Health and Social Care had declined the invitation to visit Manchester and meet with the Committee.
Decision
To note the report.
Supporting documents: