Issue - meetings

1.  That the draft Medium Term Financial Strategy and Efficiency Plan set out at Appendix A to the report of the Director of Finance and Business Improvement be agreed.

2.  That it be recommended to Council that the Government’s offer of a four year funding settlement be accepted, subject to recommendation 3.

3.  That it be recommended to Council that authority be delegated to the Chief Executive and the Section 151 Officer, in consultation with the Chairman and Vice-Chairman of the Policy and Resources Committee, to make any amendments to the Efficiency Plan, within the parameters of the agreed Medium Term Financial Strategy, that may be required based on emerging new information between now and the submission deadline.

The Director of Finance and Business Improvement presented the report which set out a combined Medium Term Financial Strategy for the five years 2017/18 to 2021/22 and Efficiency Plan in response to the government’s four year local government finance settlement from 2016/17 to 2019/20.

It was explained that:

·  The officer proposal was for the Committee to accept the funding offer to provide security over the four year period. The budget gap at the end of the Medium Term Financial Strategy planning period was expected to reach £4.2M. The potential savings set out in the Efficiency Plan would help to reduce the gap.

·  Consultation would be undertaken with residents using electronic surveys and face to face meetings. The process would culminate with the budget setting in March 2017.

During discussion the following points were raised:

·  Focus should be placed on the Commercialisation Strategy and developing new income streams founded upon current Council assets and services.

·  The majority of local authorities were choosing to proceed with the government’s finance settlement although concerns had been expressed by many regarding whether the settlement was more beneficial long term. If there were further cuts to funding, then the four year settlement would provide stability. If the financial outlook improved then there was a risk that an authority would be locked into the four year agreement and be unable to benefit from the change in circumstances.

·  A base contingency of £200,000 would be put back into the budget for stability.

In reference to the Efficiency Plan it was stated that:

·  The MOSCOW (Must, Should, Could, Won’t) ratings were illustrative of how the ratings could work, and did not represent formal decisions.

·  The consultation would be partly delivered through a Councillor led road show. The consultation would need to centre upon residents priorities and be communicated clearly and concisely.

RESOLVED:

1.  That it be recommended to Council that the draft Medium Term Financial Strategy and Efficiency Plan set out at Appendix A to the report of the Director of Finance and Business Improvement be agreed.

For – 13  Against – 1  Abstain – 1

2.  That it be recommended to Council that the Government’s offer of a four year funding settlement be accepted, subject to recommendation 3.

3.  That it be recommended to Council that authority be delegated to the Chief Executive and the Section 151 Officer, in consultation with the Chairman and Vice-Chairman of the Policy and Resources Committee, to make any amendments to the Efficiency Plan, within the parameters of the agreed Medium Term Financial Strategy, that may be required based on emerging new information between now and the submission deadline.

For – 12  Against – 1  Abstain – 2