Issue - meetings

To consider a presentation updating the Committee on progress with the Medium Term Financial Plan.

Members received an Officer presentation on current progress against the Medium Term Financial Plan.  It was noted that a similar presentation had been given at the Overview and Scrutiny (O&S) Committee meeting on 6th December 2016, which O&S had resolved to note.

Officers explained the Medium Term Financial Plan process so far, which had included production of an Efficiency Plan for the Department for Communities and Local Government, development of 4-year budget projections and a 4-year Capital Programme.  There had been a full review of all fees and charges, including areas where the Council could be more commercial in its approach whilst ensuring that facilities were accessible to all residents.  The budget assumptions had also been approved.  It was noted that the Government’s Autumn Statement for 2016 had given no detail in relation to the New Homes Bonus or Business Rates, with settlement figures expected to be announced on 15th December.  Officers confirmed that they would issue a briefing note to Members on the settlement figures on 16th December.

In relation to budget savings, Heads of Service had reviewed all service costs and income, and had reduced any budgets which had not been spent in service delivery in previous years.  Savings which could be made without impacting on service delivery had been identified in order to release capacity moving forward.  Areas of achievable additional income had also been identified.  The Capital Programme had been reviewed to ensure that this delivered on the Council’s Strategic Purposes, and Officers were currently preparing plans for alternative service provision for reporting to the Executive Committee in January.  Heads of Service had considered cost recovery of services delivered and there would be proposed increases to the budget based on current service demands, including potential costs arising from the rollout of Universal Credit and the impact of this on families.

The current financial position for 2017/18 – 2019/20 was outlined, which detailed year-on-year savings and budget pressures.  The 2017/18 shortfall stood at just over £1m, with the Council’s reserves currently standing at £1.9m.  2018/19 saw same level of shortfall, with 2019/20 and 2020/21 shortfalls being £1.56m and just under £1.7m respectively.  Whilst the shortfalls were significantly less than had previously been reported there were still gaps in information, with the New Homes Bonus being the main area of concern at this stage.

Heads of Service would be assessing the implications of the final settlement figures and a report on this would be referred to the Executive in January/February.  There would be a Housing Revenue Account and Capital report in January and the budget setting would take place in February.  The Council’s balances would be reviewed and 156 money-saving suggestions had been received from members of staff.  Officers would consider these and include any relevant suggestions in future budget reports.

It was noted that both Members and Officers had undertaken a lot of hard work on the budget and Members expressed their thanks to staff for the suggestions put forward.

RESOLVED that

the Medium Term  ...  view the full minutes text for item 57