Decision details

To note the MTFS and to approve the 4 year capital programme

RESOLVED:

That the following be noted:

1.  The requirement for a medium term financial strategy to align with the Council Delivery Plan 2022-2026 and the ambitions set out in the Southwark 2030 vision whilst safeguarding the council’s financial sustainability.

2.  The 2023-24 revenue budget forecasts and indicative gaps for the following three years and the mitigation plans in place to address these.

3.  The updated capital programme 2023-24 to 2032-33 as outlined in the body of the report and detailed in the appendices.

4.  The significant short and long term pressures on the housing investment programme  (HIP) caused by the macro-economic climate and government policy and the potential mitigating actions and corresponding impact on the housing revenue account.

5.  The proposal, in light of constrained capital financing, to develop a refreshed set of governance and proposals to ensure that all future capital bids remain affordable and in alignment with key council objectives.

6.  The critical importance of financial sustainability (paragraphs 81-91 of the report) and the need to ensure that the level of council reserves for both the general fund and the housing revenue account (HRA) are sustained or increased to a prudent level.

That the following be approved:

7.  The approach to addressing the housing revenue account (HRA) projected overspend in 2023-24 in Appendix 1 of the report.

8.  The approach to contain the HRA and HIP spending in the medium and longer term to within the projected funding envelope in Appendix 1 of the report.

9.  The virements and variations to the capital programme as detailed in Appendix 3 of the report.

10.  The inclusion within the general fund capital budget of a revenue-generating asset as detailed at paragraph 62 of the report.