Decision details

The Council is required to set the  Budget for 2017/18.

Councillor Roger Ramsey, Leader of the Council, introduced the report.

The report before Members updated the financial strategy (Cabinet had received a report on 12th October 2016 setting out the potential funding gap in the Councils financial strategy over the next two years) and included a range of proposed actions which were intended to bridge that gap. If agreed, these proposals would be integrated within the financial model as part of the Council Tax setting report to be considered by Cabinet in January 2017 and for approval by Council in February 2017.

It was reported that the Chancellor of the Exchequer had presented his Autumn Statement to the House of Commons on 23rd November 2016. The Chancellor confirmed that the Government remained committed to the spending plans introduced in 2015 although previous plans to produce a budget surplus for 2019/20 had been abandoned.

The Local Government Financial Settlement (LGFS) had been confirmed for the four-year period ending in 2019/20. All proposals would be subject to the necessary level of consultation, before any final decisions were made.

Reasons for the decision:

It was essential that the Council’s financial strategy took due account of Government plans and any other material factors where these were likely to have an impact on the Council’s financial position.  The report before Cabinet represented a further significant step in developing the Council’s budget strategy for the next three years and reflected the expected continued Government approach of reduced levels of funding. 

Other options considered:

None.  The Constitution required this as a step towards setting the Council’s budget.

Cabinet:

1.         Noted the Government’s announcements affecting Local Government as set out in the Autumn Statement.

2.         Noted the latest projection of budget gap and the assumptions upon which these have been based and the risks associated with them.

3.         Note the income generation proposals identified through the budget preparation process and that fully costed proposals will be included in the January report.

4.         Noted the latest projection of the draft Medium Term Financial Strategy (MTFS), covering the period from 2017/18 to 2018/19, as set out in the report.

5.         Noted the action plans being developed by the Senior Leadership Team (SLT) and of their importance in delivering a balanced MTFS.

6.         Noted the size and significance of the projected budgetary positon for 2019/20 to be included in the Council’s draft MTFS.

7.         Agreed to receive a further report in January 2017 which considers the impact of the Local Government Financial Settlement on the MTFS and the implications for Council Tax setting, which will be referred onto the joint scrutiny board.

8.         Noted the advice of the Section 151 Officer in setting a robust budget.