Issue - meetings

Report by Chief Finance Officer (CC11).

The Medium Term Financial Plan (MTFP) agreed by Council in February 2016 included a requirement for further savings for which proposals had not been identified of £10.4m in 2017/18 and £6.2m in 2018/19.  A surplus position of £1.3m was included for 2019/20. Over the medium term to 2019/20 a total of £15.3m additional savings are required.

Given the need to make significant additional savings only became apparent following the publication of the Draft Local Government Finance Settlement late in December 2015 due to a change in the distribution of Revenue Support Grant, it would not have been prudent to propose further significant savings without proper financial planning and consultation. Therefore, recommendations for meeting the £15.3m further savings were proposed to be brought forward as part of a revised MTFP for 2017/18 – 2019/20 to Cabinet and then Council for approval before the autumn of 2016.

The Cabinet considered the report at its meeting on 19 July 2016 and recommended Council to approve the report.

Council is RECOMMENDED to approve the:

(a)             revised Medium Term Financial Plan for 2017/18 to 2019/20; and

(b)             four year Efficiency Plan for 2016/17 to 2019/20 including the Flexible Use of Capital Receipts strategy for 2016/17 for onward submission to the Department for Communities and Local Government.

Recommendations Agreed (by 45 votes to 10, with 4 abstentions).

Councillor Stratford moved and Councillor Hudspeth seconded the recommendations set out in the report and on the face of the agenda.  In moving the report, the Cabinet Member for Finance, Councillor Lawrie Stratford paid tribute to the Finance Team for their work over the past year and on an excellent report.

Following debate, the motion was put to the vote and was carried by 45 votes to 10, with 4 abstentions.

RESOLVED: (45 votes to 10, 4 abstentions) to approve the:

(a)             revised Medium Term Financial Plan for 2017/18 to 2019/20; and

(b)             four year Efficiency Plan for 2016/17 to 2019/20 including the Flexible Use of Capital Receipts strategy for 2016/17 for onward submission to the Department for Communities and Local Government.

Cabinet Member: Finance

Forward Plan Ref: 2016/047

Contact: Katy Jurczyszyn, Strategic Finance Manager (Finance, Strategy & Monitoring) Tel: (01865) 323975

Report by Chief Finance Officer (CA9).

The Medium Term Financial Plan (MTFP) agreed by Council in February 2016 included a requirement for further savings for which proposals had not been identified of £10.4m in 2017/18 and £6.2m in 2018/19.  A surplus position of £1.3m was included for 2019/20. Over the medium term to 2019/20 a total of £15.3m additional savings are required.

Given the need to make significant additional savings only became apparent following the publication of the Draft Local Government Finance Settlement late in December 2015 due to a change in the distribution of Revenue Support Grant, it would not have been prudent to propose further significant savings without proper financial planning and consultation. Therefore, recommendations for meeting the £15.3m further savings were proposed to be brought forward as part of a revised MTFP for 2017/18 – 2019/20 to Cabinet and then Council for approval before the autumn of 2016.

The Cabinet is RECOMMENDED to  RECOMMEND Council to approve:

(a)             The revised Medium Term Financial Plan for 2017/18 to 2019/20; and

(b)             The four year Efficiency Plan for 2016/17 to 2019/20 including the Flexible Use of Capital Receipts strategy for 2016/17 for onward submission to the Department for Communities and Local Government.

Recommendations agreed.

The Medium Term Financial Plan (MTFP) agreed by Council in February 2016 included a requirement for further savings for which proposals had not been identified of £10.4m in 2017/18 and £6.2m in 2018/19.  A surplus position of £1.3m was included for 2019/20. Over the medium term to 2019/20 a total of £15.3m additional savings are required.

Given the need to make significant additional savings only became apparent following the publication of the Draft Local Government Finance Settlement late in December 2015 due to a change in the distribution of Revenue Support Grant, it would not have been prudent to propose further significant savings without proper financial planning and consultation. Therefore, recommendations for meeting the £15.3m further savings were proposed to be brought forward as part of a revised MTFP for 2017/18 – 2019/20 to Cabinet and then Council for approval before the autumn of 2016. Cabinet had before them the report setting out the proposed recommendations for meeting these further savings.

Councillor Hards, Shadow Cabinet Member for Finance sought assurance that everything possible would be done to ensure that Government were aware of the difficulties caused by the late settlement in February 2016 and to urge them not to repeat it. With regard to the use of digital access he urged the council to remember the problems of people for whom it was difficult or not possible to access services digitally. This was not an older people issue as he was aware of many older people using the internet. Councillor Hards welcomed the good work so far on the strategic property review but highlighted the need to do better. He sought an update on the income generation pump priming.

Councillor Stratford, Cabinet Member for Finance in moving the recommendations stated that he feared that the timing of the settlement would be the same or worse for the budget setting in February 2017. He welcomed the 4 year settlement referred to at paragraph 8 for bringing some certainty but it would depend on what was meant by the caveats. He took on board the point made by Councillor Hards that some would find digital access challenging. He commented that more work was required in relation to the income generation pump priming although the other was moving forward.

Lorna Baxter, Chief Finance Officer noted that the Efficiency Plan would be amended to reflect the statement made at Minute 60/16 above.

RESOLVED:           to RECOMMEND Council to approve:

(a)        the revised Medium Term Financial Plan for 2017/18 to 2019/20; and

(b)        the four year Efficiency Plan for 2016/17 to 2019/20 including the Flexible Use of Capital Receipts strategy for 2016/17 for onward submission to the Department for Communities and Local Government.