Issue - meetings

To consider the initial development of the Medium Term Financial Plan 2017 onwards and to consider the factors that will influence its delivery and that of the annual budget strategy 2018/19.

RECOMMENDED:

(a)         That the revised Medium Term Financial Plan, as outlined within Report Item 9 to the Cabinet and its Appendix 1, be adopted;

(b)        That the reporting timeline set out in section 6 of Report Item 9 to the Cabinet be agreed; and

(c)         That consideration of the Council’s organisational business model and plans for options to support the Medium Term Financial Plan, as set out in Report Item 9 to the Cabinet, be progressed.

The Cabinet considered revisions to the Medium Term Financial Plan.  Their attention was drawn to a number of significant changes since February, when this issue had last been considered (minute 57 refers).  Of particular note was that the Bill to reform local government funding, including the 100% retention of business rates, was now effectively suspended, with no plans for its introduction.    The overall “Fair Funding” review would continue, but the Department of Communities and Local Government was reconsidering the issue of 100% retention.   The Council’s budgets would need to evolve as the Fair Funding review took shape.  To date the budget reflected good performance in the Business Rate Collection Fund with a surplus equivalent to £373,000.  For the future, the budgets would need to reflect the loss of Revenue Support Grant by 2019/20 and the likely loss of New Homes Bonus as a reliable funding stream, and which would probably cease entirely by 20212/22.

The Cabinet was updated on the budget stabilisation strategy, forecast budget deficit and the actions required over the period to 2022.   Five key action points were set out in paragraph 5.6 of Report Item 9 to the Cabinet.

It was agreed that information of the proportion of employment costs associated with the Council’s pension contributions would be sent to Cllr Penson.

RECOMMENDED:

(a)         That the revised Medium Term Financial Plan, as outlined within Report Item 9 to the Cabinet and its Appendix 1, be adopted;

(b)        That the reporting timeline set out in section 6 of Report Item 9 to the Cabinet be agreed; and

(c)         That consideration of the Council’s organisational business model and plans for options to support the Medium Term Financial Plan, as set out in Report Item 9 to the Cabinet, be progressed.