Medium Term Financial Strategy (MTFS) 2023/24 - 2027/28

Revenue outturn 2021/22

Through the pandemic and lockdown restrictions over the last couple of years, the Council has risen to the challenge. Recovery from the pandemic and learning to live with covid has started across all services of the Council to help the residents of Gateshead. Cabinet agreed in June 2022 a net revenue budget of £238.758m. The overall outturn position for the Council resulted in a surplus of £0.431m. The positive year-end position is a testament to the collective approach taken by groups and services to keep pressures under review within the financial year and ensuring that action was taken in a timely manner to ensure outturn within budget. Effective financial management has ensured that all covid funding resources and time limited funds have been maximised alongside consideration of setting aside funding for future pressures and lost income.

The Council has a strong and stable financial base with an outstanding record of budget delivery. Since the start of austerity, the council has made significant cuts and responded to demand pressures to deliver £179m of budget savings.

Revenue budget 2022/23

On 24 February 2022 the Council agreed a revenue budget of £254.3m which was balanced through planned use of £5.8m of reserves. This approach was in line with the agreed three-year approach for planned use of reserves to allow time to identify cuts and efficiencies.

Given high inflation and demand the expectation that delivery of the budget will be under significant pressure. This is evident in current year monitoring and projections.