Financial Strategy 2022

Our Financial Strategy is the link between the Council's long term strategic objectives and its financial capacity. Our strategic objectives are set out in the Council's Corporate Plan. These objectives are determined by elected members and will reflect political priorities, legal requirements, national policy and reflect the particular needs of our communities in terms of both our people and place. Priorities and key objectives may therefore change over time. 

The aim of the Financial Strategy is therefore, to build financial resilience and ensure that we have an affordable and sustainable Medium Term Financial Plan and Revenue Budget, which directs our resources to where they are most needed, in line with our agreed priorities and strategic objectives at any given time. 

The Council is legally required to set a balanced Revenue Budget each year. Revenue expenditure relates to the day-to-day operating costs of the Council, for example staff costs as well as the borrowing costs incurred in funding the Council's Capital programme. 

At present, the Council's recurring Revenue expenditure is, in part, funded from Reserves. The application of non-recurring resources to meet ongoing expenditure is not sustainable and is referred to as a structural (recurring) deficit which requires to be addressed. 

The Financial Strategy is predicated on the Council taking corrective action to manage its expenditure and income to return to a position of long-term financial sustainability. 

Financial sustainability will be achieved and maintained through prudent financial management, targeted investment and dis-investment, increasing income, reducing costs and developing more efficient and effective ways of working.