Issue - meetings

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.