Agenda item

Councillor Roger Ramsey, Cabinet Member for Value, introduced the report.

At a previous meeting, Cabinet had received a report which set out the key elements of both the National Budget and the subsequent Comprehensive Spending Review (CSR) announcement.  These had now been analysed and their impact on the Council’s financial position had been assessed with details set out in the report to Cabinet. 

The report updated the longer term financial prospects which had first been outlined in a report to Cabinet in February 2013. It was explained that these needed to be set in the context of the current strategy and savings plan, and the current financial position; both of which were covered in the report to Members.

The report also set out the proposed approach to the development of a long term financial strategy, progress with the budget strategy for 2014/15, and the financial position in the year just ended and the initial forecast for the current year.  Whilst accepting that any forecasts that run to the end of the current decade were open to change, the need for the development of a strategy was clear.  The report set out the proposed approach to doing so.

Reasons for the decision:

It is essential that the Council’s financial strategy takes due account of Government plans, and any other material factors where these are likely to have an impact on the Council’s financial position.  This report provides an update to Cabinet on a range of Government announcements that impact on the Council’s funding for coming years, which are particularly relevant to the budget setting process, as well as further information on both the previous and current financial years.

Other options considered:

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

Cabinet:

1.   Noted the impact of the Comprehensive Spending Review and associated announcements on the Council’s financial position.

2.   Noted the final outturn position for 2012/13 and the initial forecast for 2013/14.

3.   Agreed that a detailed long term financial strategy, covering the period from 2015/16 to 2018/19, should be presented for consideration by Cabinet by August 2014, taking into account the announcement of the Local Government Finance Settlement, which is not expected until after Christmas.

4.   Instructed officers to prepare a range of proposals to deliver a stable financial position over that four year period as part of the budget strategy for consideration at that meeting.

5.   Approved and recommended to Council the adoption of the revenue budget strategy statement set out in Appendix A of the report.

6.   Noted that options were being assessed for potential Pension Fund investments and this would be brought back to Cabinet at a future meeting.

7.   Approved the principle of  the 2014/15  schools’ maintenance programme, as set out in Appendix C of the report, being funded up to the level of grant funding, ie £2.9m, and delegated to the Lead Member for Children & Learning authority to approve any additional schemes should further funding become available.

8.    Agreed to allocate Havering’s allocation of £422,197 for the Early Education Entitlement (EEE) for 2 Year Olds to fund works as set out in paragraph 7.6 of the report, and to delegate to the Lead Member for Children & Learning authority to approve individual schemes.