Issue - meetings

To consider a report on the medium Term Financial Plan for 2014/14 – 2016/17.

(Oral presentation)

The Executive Director (Finance and Corporate Resources) gave a presentation which provided Members with an update on the position regarding the Medium Term Financial Plan 2014/15 to 2016/17. The presentation highlighted the Authority’s Strategic Purposes and the expenditure associated with each of the purposes together with the costs of enabling.

The projected shortfall in funding for 2014/15 had been reduced from £1,631,000 to £352,000 by way of the use of reserves both general and capital replacement, through the reduction in enabling costs and through further service reviews. The remaining shortfall was being addressed by Heads of Service and Managers identifying further savings through the redesign of services, with the proviso that front line services would not be adversely affected. In addition income generation was being reviewed wherever possible.     

It was reported that the shortfall in funding was due largely to the drastic reduction in funding from central Government rather than from an increase in spending.  

Issues which were highlighted within the presentation included the assumption of a staff pay award of 1%, the cost of borrowing for example for fleet replacement, potential capital receipts in the future and the impact of cuts in Worcestershire County Council funding, including the likely increase in demand for services provided by this Authority.

Members were very concerned regarding the current position particularly in view of the efforts made by officers and Members of the Authority to significantly increase efficiency through shared services and transformation and to reduce spending where possible.

Reference was made by Members to the poor level of financial support received by the Borough from central Government in comparison to other Authorities in Worcestershire. This had previously been the subject of a complaint to the Department of Communities and Local Government and it was felt a further letter should be sent by the Leader in response to this year’s settlement.

There was also a request from a Member for information regarding the level of grant settlement to Authorities within the County over the past 10 years.

RESOLVED that

1)         the presentation of the Executive Director (Finance and Corporate Resources) on the Medium Term Financial Plan be noted : and

RECOMMENDED that

2)         the Leader writes in the strongest terms to the Department of Communities and Local Government in response to the grant settlement as the Borough Council has again received  the worst settlement in Worcestershire.  

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