Issue - meetings

The Board considered a report of the Operational Director, Finance, on the Medium Term Financial Strategy for 2016/19.

The Board was advised that the Medium Term Financial Strategy (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, as a result of the effect of the Government policy to reduce the national deficit through reductions in public sector funding. The Strategy took into account the following:

·       Autumn Statement 2014;

·       Business Rates Review 2015;

·       Summer Budget 2015;

·       Technical Consultation – Local Authority Public Health Allocations 2015/16 : In-Year Savings; and

·       Comprehensive Spending Review 2015.

The forecast provided initial guidance to the Council on its financial position into the medium term. Revenue savings of approximately £18m, £16m and £7m would be required over the next three years. It was noted that as a result, £41m would need to be removed from the Council’s budget, which represented 17% of the gross expenditure 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 for 2016/17 being presented in three sets. The first of these was considered by Council at its meeting on 14 October 2015. In addition, the report set out details of the Council’s Capital Strategy, for the management of assets such as land and buildings in Council ownership.

RESOLVED: That

1)    the Medium Term Financial Strategy be approved;

2)    the 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 2016/17 remains at the 2015/16 level of 21.55%; and

6)      the Council’s 2016/17 Council Tax Support grant is not shared with the Parish Councils.