Agenda item

Cabinet:

1.            Noted the original and currently projected budget gap and the assumptions upon which these had been based, and the risks associated with them.

2.            Noted the draft Medium Term Financial Strategy (MTFS), covering the period from 2017/18 to 2019/20, set out in the report.

3.            Noted that there was a range of risks and assumptions made as part of the development of the strategy and that updates would be provided to Cabinet should these vary, in the build-up to Council Tax setting.

4.            Noted that any alternative proposals from Overview & Scrutiny or opposition groups, that would need to be subject to consultation, would need to be subject to a robust review before they could be considered for inclusion in the Council’s budget and therefore had to be submitted by 10^th November prior to the next meeting of Cabinet on 14^th December in order to be considered as part of the consultation process.

5.            Noted that a range of corporate strategies might be impacted by the budget strategy and these would need to be updated and approved accordingly.

6.            Reviewed the initial proposal to maintain a core capital programme of around £4.9m a year subject to a detailed review of available receipts and to a further review of borrowing costs.

7.            Agreed to receive a further report in December to consider progress to date in delivering the 2016/17 budget, developing further proposals for 2017/18 and beyond and providing an update on the prospects for the financial settlement following the Chancellor’s Autumn Statement.

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

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

Cabinet was informed that the report set out the Council’s Medium Term Financial Strategy to manage the implications of funding reductions and cost pressures over the next three years.

The report set out the process for bridging the funding gap with a view to achieving a balanced two-year budget.

It reviewed the cost pressures faced by the Council and updated the financial model as reported to the Council in February 2016 when setting the Council Tax requirement for 2016-17.

The financial strategy had been updated on the assumption that the Government’s four year financial settlement would be implemented – though Members were reminded that should there be changes to Government’s policies, the financial strategy would be reviewed and appropriate action taken.

The report also explained the process and timescales for identifying further cost savings and income generation proposals that might be required to meet the funding gap over the three year cycle.

Cabinet was assured that all proposals would be subject to full and proper consultation, before any final decisions are 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 set out the process for 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.

After accepting an amendment in the wording of recommendation two (deleting “agreed” and inserting “noted”) Cabinet:

1.            Noted the original and currently projected budget gap and the assumptions upon which these had been based, and the risks associated with them.

2.            Noted the draft Medium Term Financial Strategy (MTFS), covering the period from 2017/18 to 2019/20, set out in the report.

3.            Noted that there was a range of risks and assumptions made as part of the development of the strategy and that updates would be provided to Cabinet should these vary, in the build-up to Council Tax setting.

4.            Noted that any alternative proposals from Overview & Scrutiny or opposition groups, that would need to be subject to consultation, would need to be subject to a robust review before they could be considered for inclusion in the Council’s budget and therefore had to be submitted by 10^th November prior to the next meeting of Cabinet on 14^th December in order to be considered as part of the consultation process.

5.            Noted that a range of corporate strategies might be impacted by the budget strategy and these would need to be updated and approved accordingly.

6.            Reviewed the initial proposal to maintain a core capital programme of around £4.9m a year subject to a detailed review of available receipts and to a further review of borrowing costs.

7.            Agreed to receive a further report in December to consider progress to date in delivering the 2016/17 budget, developing further proposals for 2017/18 and beyond and providing an update on the prospects for the financial settlement following the Chancellor’s Autumn Statement.

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