Agenda item

Report of the Chief Officers Executive.

Pursuant to Minute C94(1)/Jan/20, the Leader introduced the report of the Chief Officers Executive (previously circulated) proposing a Medium Term Financial Plan (MTFP) for 2020/21 to 2023/24 including setting a budget and council tax increase for 2020/21, to Council for approval on 20 February 2020.

The submitted report stated that over the last decade, the Council had faced significant challenges following the economic downturn and reduction in public sector spending; to date the Council had been successful in responding to those challenges but there were still financial pressures to be faced, particularly in respect of a growing elderly population and pressure in the children’s social care sector; the draft Local Government Finance Settlement (LGFS) had been received on 20 December 2019; the settlement was in line with the Chancellors spending review announcement with the continuation of Revenue Support Grant (RSG) and  New Homes Bonus (NHB), additional social care monies of £2m and the ability to raise inform for Adult Social Care through the precept; as the settlement was for one year only assumptions had been made in regard to future years funding; and outlined the proposed amendments to the draft MTFP.

It was reported that the Council undertook a significant consultation exercise in 2016, following an in-depth and detailed review of all services which resulted in the agreement of a Core Offer budget which allowed for a small futures fund allocated to discretionary services; in subsequent MTFP’s the Council had agreed to use unallocated balances of £4.7m to invest in five areas which held great value to the community; although the Core Offer remained challenging, an additional £1.8m had been allocated to bolster the Futures Fund themes whilst retaining usable balances of £3.683m; and that the Council’s financial position was robust with a four year balanced MTFP with funds available for investment which would be delegated to Cabinet.

Details of the projected expenditure and income, budget pressures and savings, schedule of fees and charges, assumptions used to prepare estimates, projected Revenue Outturn 2019/20, assessment of risk balances, and comments from the Economy and Resources Scrutiny Committee,  were also appended to the submitted report.

RESOLVED - That the Revenue Medium Term Financial Plan, as set out in Appendix 7 of the submitted report, be approved and recommended to the special meeting of Council on the 20 February 2020 including:-

(a)    a Council Tax increase of 1.99 per cent plus the two per cent adult social care precept to fund social care for 2020/21 totalling 3.99 per cent;

(b)    the schedule of charges, as set out in Appendix 3 of the submitted report; and

(c)    the Futures Fund investment of £1.8m, as set out in paragraph 61 of the submitted report.

REASONS - (a)  The Council must set a budget for the next financial year.

(b)  To enable the Council to continue to plan services and finances over the medium term.

(c)  To ensure decisions can be made in a timely manner.?????