Medium Term Financial Strategy 2023-24

2. National Context

1. 2.1. There continues to be significant uncertainty around Local Government Funding and Policy, namely delays to fundamental reviews i.e., the fair funding review and the business rates retention review that will inform the future funding for local services. In addition, like all local authorities Great Yarmouth Borough Council (GYBC) face significant financial challenges due to inflationary rises to both capital and revenue costs.
2. 2.2.The continued economic uncertainty further exacerbates these challenges. There have been significant shifts in the economy whilst September saw CPI rates remain unchanged at the August level of 6.7% month on month increases had been 0.5%. Over the past 12 months there has been continued increases to the Bank of England base rate to 5.25% which remained unchanged at the September 2023 meeting of the Monetary Policy Committee. These factors coupled with the increases to fuel and utility prices are having and will continue to have a financial impact to Local Authorities in the short to medium term.
3. 2.3. The Autumn statement will be made by the Chancellor later in November which will set out the plans for the UK economy for the next 12 months. Until the detail behind the announcements is made the impact for Local Government funding will not be known until later in the year, in the meantime the council is still required to make preparations for the budget for the coming financial year. Announcements on the provisional Local Government Finance Settlement are not expected until later December (before Christmas), although the 2023/24 plus inflation is the basis for the funding assumptions for 2024/25.
4. 2.4. It remains important that the Council continues to adopt a prudent approach for its medium-term financial strategy to set priorities that will support and deliver savings, additional income and efficiencies for the Council. The continued uncertainty further curtails the ability to provide accurate financial projections and forecasts over the medium term, the forecasts are therefore reliant assumptions.
5. 2.5. The key themes of the MTFS as outlined in the business strategy section of the document remain critical to delivery of a balanced budget for 2024/25 and future budget setting. Despite the national uncertainty, the refresh of the MTFS is required to inform the detailed budget setting process for the 2024/25 budget ahead of approval of the budget in February 2024.