Issue - meetings

Report of the Head of Finance

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.

He advised Cabinet that the report provided a summary of the revisions to the Councils Medium Term Financial Plans and that it also provided an update on the Journey to Self-Sufficiency Programme and the new approach that has been designed by the Corporate Leadership Team in establishing new savings targets for all council services.

In relation to the General Fund he noted that the outlook over the forthcoming five year period was a £1.2m deficit but pointed out that the position included Journey to Self-Sufficiency savings of £5.1m meaning that if they were not delivered the deficit would be significantly higher at £6.3m.

He advised that the impact of the deferred local government funding reviews had been incorporated into the plan and that officers continued to assume a full business rates baseline reset, and that historic New Homes Bonus payments for a further 2 years would be received before the scheme was phased out.  

He informed Members that additional growth in business rates was now been incorporated into the plan specifically in relation to the recent planning decision at Junction 11 of the M42 and, that, the revisions on the General Fund had resulted in a favourable movement in the 5 year savings target, bringing it down by £4.5m, from £5.7m over the period to £1.2m. 

In relation to the Housing Revenue Account, he highlighted that the 5 year projections remained positive with a surplus of £4.7m projected. £2.6m of the forecast was a result of the targeted Journey to Self-Sufficiency savings.

He added that a number of long-ranging assumptions have been reviewed and updated and as a result a previously reported likely funding shortfall of £26.4m in 2041/42 is now not forecast to occur, meaning the HRA would be able to repay the original Self-Financing loans when they fall due.

In response to a question from Councillor N J Rushton, the Chief Executive advised Members that officers were working on plans for the Journey to Self-Sufficiency and was comfortable that they could be met.

It was moved by Councillor N J Rushton, seconded by Councillor R Blunt and

RESOLVED THAT:

1.    The revised Medium Term Financial Plans be noted

2.    The progress of the Journey to Self Sufficiency be noted

Reason for decision:To keep members up to date in respect of the council’s five-year financial projections.