Agenda item

Medium Term Financial Strategy 2022/23 to 2025/26 - Proposals for Consultation.


The Cabinet considered a report of the Director of Corporate Resources setting out the proposed Medium Term Financial Strategy for 2022/23 to 2025/26. A copy of the report, marked ‘Agenda Item 4’, and a supplementary report with the detailed proposals, which was circulated separately, are filed with these minutes.


Mr Breckon said that this would be a tough MTFS with over £100m of savings needing to be achieved over the next four years alongside the delivery of a £514m Capital scheme to provide highway, transport and school infrastructure.


He added that rising costs and demand for adult and children’s social care and SEND provision was placing substantial pressure on the budget and the proposed 3% increase in Council Tax for 2022/23, which included the 1% adult social care levy, was required to help manage the difficult position. The Authority would continue to campaign for Government funding reform which was required in order to break the cycle of service demand and cost pressures having to be met by Council Tax increases and further savings. He urged Leicestershire residents to respond to the Council’s consultation exercise.


Mr Rushton said that the proposed 3% increase in Council Tax was necessary in order to meet the significant financial challenges the Council faced and to honour the Conservative Group’s Manifesto pledge to protect the most vulnerable. He welcomed the proposed allocation of £28m to support highway maintenance and additional funding to support the commitment to plant 700,000 trees across the County. 




a)    That the proposed Medium Term Financial Strategy, including the 2022/23 revenue budget and capital programme, be approved for consultation and referred to the Overview and Scrutiny Committees and the Scrutiny Commission for consideration;         


b)    That the Director of Corporate Resources, following consultation with the Cabinet Lead Member for Resources, be authorised to –


                          I.          agree a response to the draft Local Government Finance Settlement;


                        II.          decide on the appropriate course of action for the Leicester and Leicestershire Business Rates Pool in 2022/23 and subject to agreement by all member authorities to implement this;


c)     That a further report be submitted to the Cabinet on 11 February 2022;


d)    That the allocation of £28m of one-off funding for additional highways maintenance, additional resilience for capital schemes, to reduce capital borrowing requirements and provide an initial investment fund for carbon reduction initiatives be approved;


e)    That authority be granted to the Chief Executive and the Director of Corporate Resources, following consultation with the Lead Member for Resources, to approve the use of any additional funding which may be made available by the NHS locally to ease the burden on the health and care system, noting that this is likely to be non-recurrent funding for use in the current financial year.






To enable the County Council to meet its statutory requirements with respect to setting a budget and Council Tax precept for 2022/23 and to provide a basis for the planning of services over the next four years.


To ensure that the County Council’s views on the Local Government Finance Settlement are made known to the Government.


To enable the County Council (alongside the pooling partners) to respond to the Department for Levelling Up, Housing and Communities in respect of the Business Rates Pool within 28 days from the draft Local Government Finance Settlement.


To enable contingency funding no longer required in 2021/22 to be redirected to County Council priorities.


Leicester Leicestershire and Rutland NHS were expected to have significant non-recurrent funding available in the current financial year. Discussions were taking place between the Authority and the NHS regarding the potential to use the money for the benefit of social care services in Leicestershire. The delegation will allow the County Council to agree the best approach with the NHS.


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