Medium Term Financial Strategy (MTFS) 2022/23- 2026/27

The Medium-Term Financial Strategy (MTFS) is a key part of the Council's Budget and Policy Framework which aims to ensure that all financial resources are directed towards delivery of Council priorities. The Strategy describes the financial direction of the Council for financial planning purposes and outlines the financial pressures over a five-year period but is reviewed annually to reflect the dynamic nature of local government funding.

On 4 February 2021 a one-year financial settlement was received for 2021/22.

On 7 September 2021, the government published 'Building Back Better: Our Plan for Health and Social Care'. This represents a plan to address the backlog in the NHS resulting from the COVID-19 pandemic and the long standing systemic and funding challenges for delivering adult social care. This plan represents the first stage of information being provided around the reforms; in particular, for adult social care.

The 2021 Spending Review will be delivered on 27 October 2021 and it has been confirmed that this will set out funding totals for the three-year period 2022/23 to 2024/25. The Government plans to then consult on proposals for distributing the additional funding for adult social care across local government. In addition, the Government will also publish a white paper on system reform for adult social care.

Medium term financial planning has never been more necessary or more challenging. The continuing impact of the pandemic crisis as well as Brexit and associated volatility on funding and demand requires the Council to establish financial plans over a longer time period. As with previous years there is no guidance from Government on future funding and financial reforms, which is a significant barrier to effective financial planning for the Council. The current context is exceptional and it will require continual monitoring, financial discipline and new and flexible approaches to financial planning and management.