68 Medium Term Financial Strategy - KEY DECISION PDF 494 KB
Minutes:
The Board considered a report of the Operational Director, Finance, on
the Medium Term Financial Strategy (MTFS) for the period 2018/19 to 2020/21.
The Board was advised that the MTFS set out a three year projection of
resources and spending based on information currently available.
The projections in the forecast showed there was a need to make a
significant level of savings over the next three years. This was the effect of
projections of public spending through to 2020 which resulted from the 2015
Comprehensive Spending Review. The MTFS took account of:
· The
Comprehensive Spending Review 2015;
· The
Local Government Finance Settlement 2017/18 dated 21 February 2017;
· The
Budget 2017 announced by the Chancellor of the Exchequer on 8 March 2017; and
· The
announcement of the Government’s final position on the schools national funding
formula and high needs formula dated 14 September 2017.
The MTFS provided initial guidance to the
Council on its financial position into the medium term. Revenue savings of
approximately £5.6m, £13.2m and £3.3m would be required over the next three
years. It was noted that as a result, a total of £22.1m would need to be
removed from the Council’s budget which represented 21.4% of the net budget.
The Board was advised that the MTFS had a
number of objectives, as listed in the report. The Council would need to
consider these objectives when balancing its budget over the next three years.
The report also set out the Council’s budget strategy, with budget savings
proposals and areas identified for further savings. The report contained
details of the Council’s Capital Strategy for the management of assets such as
land and buildings in Council ownership.
Reason(s) for the Decision
To seek approval for the Council’s Medium Term Financial Strategy for
2018/19 to 2020/21.
Alternative Options Considered and Rejected
The alternative option of not maintaining a MTFS had been considered.
However, this would not follow good financial management practice, as the MTFS
was a key element in informing the Council’s financial planning and budget
setting processes.
Implementation Date
The Medium Term Financial Strategy 2018/21 would be implemented from 1
April 2018.
RESOLVED: That
1) the
Medium Term Financial Strategy be approved;
2) the
2018/19 base budget be prepared on the basis of the underlying assumptions set
out in the Strategy;
3) the
Budget Strategy and Capital Strategy be approved;
4) the Reserves
and Balances Strategy be approved;
5) the
award of Council Tax Support for 2018/19 remains at the 2017/18 level of
21.55%; and
6) the Council’s 2018/19 Council Tax Support grant is not shared with the Parish Councils.