Agenda item - 4 Year Resource and Integrated Service and Financial Planning Update

Report of the Executive Director for Finance & Resources (copy attached).

RESOLVED – That the Committee:

1)     Note the resource and net expenditure projections for 2017/18 and the Medium Term Financial Strategy (MTFS) projections set out in the body of the report and appendices 1 and 2 based on 1.99% Council Tax increases and annual 2% Adult Social Care precept.

2)     Note the revised savings requirement of £44.4 million over the 3 years 2017/18 to 2019/20, including £18.2 million in 2017/18, to be used for budget setting purposes as detailed at paragraph 3.11.

3)     Instruct the Executive Leadership Team (ELT) to refresh the current 4 Year Service & Financial Plans and develop further savings proposals to address any outstanding budget gaps, in particular for 2017/18, based on the MTFS assumptions in this report for consideration by Policy, Resources & Growth Committee.

4)     Agree the proposed approach to reviewing the Council Tax Reduction Scheme as set out in paragraphs 3.23 & 3.24.

5)     Note the resource projections for the Capital Investment Programme as shown in appendix 3.

24.1       The Committee considered a report of the Executive Director for Finance & Resources in relation to 4 Year Resource and Integrated Service & Financial Planning Update. The report provided a budget planning and resource update for the 2017/18 budget process including an updated Medium Term Financial Strategy (MTFS) based on latest information and resource projections.

24.2       In response to Councillor Wealls it was clarified that Officers would be more than willing to share the draft response to 100% Business Rate retention with the Budget Review Group before it was returned. In relation to the apprenticeship levy it was explained that there was currently no information from Central Government about the income from this, which made planning difficult.

24.3       Councillor Janio stated his view that the Council should hold greater reserves to better address the varying position across the financial year. He noted that his comments also related to Item 25 – Targetted Budget Management.

 24.4      In response to Councillor Sykes it was clarified that Officers were still working through a number of budget uncertainties; however, comments in relation to the presentation of the report would be taken away, it was also acknowledged that the information needed to be accessible to ensure the Council remained transparent.  Councillor Hamilton also provided assurance that he was aware of the issues raised by Councillor Sykes, but highlighted the uncertainty in relation adult social care budgets. The Acting Executive Director for Health & Adult Social Care explained that there were still ongoing discussions with the Department of Health in relation to signing of Better Care Fund plans due to the level of funding that was being transferred across and what percentage would be for social care. It was also clarified that the demand for adult social care was an issue for all local authorities discharging this function and not simply a local issue.

24.5       Councillor Sykes highlighted that the report projected a 17% Council Tax rise over the next four years, and noted that in opposition the Labour Group had blocked above threshold Council Tax increase proposals by the then Green Administration.

24.6       The Chair then put the recommendations to the vote.

24.7       RESOLVED – That the Committee:

1)     Note the resource and net expenditure projections for 2017/18 and the Medium Term Financial Strategy (MTFS) projections set out in the body of the report and appendices 1 and 2 based on 1.99% Council Tax increases and annual 2% Adult Social Care precept.

2)     Note the revised savings requirement of £44.4 million over the 3 years 2017/18 to 2019/20, including £18.2 million in 2017/18, to be used for budget setting purposes as detailed at paragraph 3.11.

3)     Instruct the Executive Leadership Team (ELT) to refresh the current 4 Year Service & Financial Plans and develop further savings proposals to address any outstanding budget gaps, in particular for 2017/18, based on the MTFS assumptions in this report for consideration by Policy, Resources & Growth Committee.

4)     Agree the proposed approach to reviewing the Council Tax Reduction Scheme as set out in paragraphs 3.23 & 3.24.

5)     Note the resource projections for the Capital Investment Programme as shown in appendix 3.