Agenda item

The Executive Director of Finance and Resources provided Members with an update on the Medium Term Financial Plan 2019/20 – 2022/23.  It was confirmed that the Fees and Charges for 2019/20 would be considered by the Budget Scrutiny Working Group at its meeting on 7^th January 2019.

The report outlined the issues faced by the Council in achieving a balanced budget and delegated to officers to investigate ways to achieve this.  The Executive Director of Finance and Resources drew Members’ attention to a table within the report which demonstrated the changes in the financial projects and budget gap for 2019/20 based on the original estimation of a £475k gap as presented in February 2018.  Explanations of the reasons for the changes which resulted in the current gap of £496k were also highlighted, with particular reference being made to the additional costs in respect of the implementation of the National pay agreement in relation to increasing the spinal points attached to the current pay model, which had increased the cost by £160k.

The following areas were also discussed in more detail:

·         Unavoidable costs in order to maintain current services.  This included funding for an automated transactional process which would allow for the process to become more efficient.

·         Savings and income – this included £100k from a contract with Cannock achieved by the Lifeline service.

·         The need to ensure that all savings were identified and not to be recorded as “unidentified” as had been the case previously.

·         Negative Revenue Support Grant – it was noted that, whilst it had not been confirmed, the projections included the removal of the £331K negative grant payment to Central Government.

·         Business Rates baseline, the increase in the Section 31 Grant and the impact of this.

·         The officer recommendation to increase Council Tax by 2.99% and the proposed increase at County Council level.

·         New Homes Bonus Scheme (NHB) – concerns around the future of the scheme and the impact from the loss of the “new” NHB payments.

·         Assumptions that had been made for future years including additional costs of borrowing for the capital programme.

·         The current and minimal recommended level of balances.

·         Capital bids including fleet replacement.

·         Members sought clarification in respect of the £58k additional rental income in respect of savings and additional income.  Officers agreed to provide information in respect of the properties this referred to outside of the meeting.

·         It was confirmed that the reduction in the Grants budget of £20k had been returned to balances and formed part of the savings.

·         The £10k referred to in respect of the new Lottery Scheme was for the licencing fee.

·         The additional cost of £28k in respect of Electoral Services and what this referred to – officers agreed to provide the information outside of the meeting.

·         Members asked for the capital bid in respect of Terry’s Field to be clarified and it was confirmed that this should read Terry’s Memorial Field and would be highlighted in the report presented to the Executive Committee.

·         Offices confirmed that the Council had a statutory duty to provide a balanced budget by 23^rd February 2019.

Members took the opportunity to thank the Executive Director of Finance and Resources and her team for all their hard work in producing a balanced budget.

RESOLVED that

the recommendations within the Medium Term Financial Plan 2019/20 – 2022/23 be noted.