Issue - meetings

To consider the report of the Chief Officer Financial Services presenting the Council’s Medium Term Financial Strategy (2025/26 – 2029/30).

The Chief Officer, Financial Services submitted a report presenting an update on the Council’s Medium Term Financial Strategy for the period 2025/26 – 2029/30, and which provided details of both the context and the factors that influence the shape of the strategy. The report noted that the intention was to submit budget savings proposals to future Executive Board meetings in advance of the proposed 2025/26 budget being submitted to the Board in December 2024.

The Executive Member introduced the report, highlighting the currently estimated General Fund budget gap which existed over the 5-year period that the Strategy covered, including the budget gap relating to 2025/26. Further details were provided on the context and the associated challenges that the Council faced, including inflationary pressures and also increased demand regarding adult and children’s social care. It was noted that the Strategy also covered the Council’s Capital Programme, Housing Revenue Account and Dedicated Schools’ Grant.

Members discussed the budget gap detailed within the report relating to 2025/26 and the liaison taking place with Government regarding Local Government finances.

Responding to a Member’s specific comments regarding the high costs of external residential placements for children looked after, the Board received an update on the current position in Leeds in relation to demographic and demand pressures, with it being highlighted that this continued to be a significant national issue. Further detail was provided on the Council’s sufficiency strategy and the work that continued in Leeds to develop in-house residential care provision. It was noted that the Council continued to work closely with Ofsted on such matters. Members also received an update on the recent announcements made by the Government aimed at tackling national issues regarding children’s external residential placement provision.

Members noted the actions that continued to be taken to reduce associated pressures where possible and to address the General Fund budget gap detailed with the report. Whilst it was noted that proposals to contribute towards addressing this position would continue to be submitted to Members for consideration, the significant scale of the challenge faced was emphasised. With regard to related proposals being brought forward, it was noted that there was a clear timetable in place for Member engagement and Scrutiny consideration.

RESOLVED –

(a)  That the updated Medium Term Financial Strategy for 2025/26 to 2029/30, as presented in the submitted report and appendices, be noted;

(b)  That it be noted that budget savings proposals will be received at future Executive Board meetings in advance of the Proposed Budget for 2025/26 being received by Executive Board in December 2024.