Issue - meetings

2. Medium Term Financial Strategy 2020/21-2024/25 - Initial Scoping and Assumptions

Meeting: 23/07/2019 - Policy and Resources Committee (Item 47)

47 Medium Term Financial Strategy 2020/21-2024/25 - Initial Scoping and Assumptions pdf icon PDF 146 KB

Additional documents:


The Director of Finance and Business Improvement presented the report on the Medium term Financial Strategy 2020/21 – 2024/25 – Initial Scoping and Assumptions.  There was significant uncertainty in setting the strategy as it was the end of the funding settlement period and though the existing arrangement would be rolled forward the Council tax referendum limit was unknown, the amount of business rates retention was unknown and the amount of new homes bonus was unknown.  Other factors such as Brexit also introduced uncertainty.  However, the Council was more self funding than it had been previously which put it in a surer financial position.


A number of scenarios would be modelled and these would be based on assumptions.  The key source of funding for the Council was Council tax and one of the assumptions was based on a referendum limit level of Council tax increase.


The Committee considered that the scenarios should be expanded such that other Council tax levels could be modelled.  In particular a Council tax freeze and a no real terms change in Council tax (i.e. consistent with inflation).




1.  The issues and risks and associated with updating the Medium Term Financial Strategy be noted;


2.  The assumptions described in the report of the Director of Finance and Business improvement for planning purposes, as well as the alternative scenarios for the possibility of a council tax freeze, and council tax no real terms change; and


3.  The approach outlined to development of an updated Medium Term Financial Strategy for 2020/2021 – 2024/25 and a budget for 2020/2021 be agreed.


Voting:  Unanimous