Issue - meetings

Report of the Interim Director of Resources

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.  He advised that the Medium Term Financial Strategy provided a high level assessment of the financial resources required to deliver the strategic priorities and essential services over the next four years.  He stressed the importance of having reserves and being prudent, especially as local government funding was under close scrutiny and there had been a change in focus from central funding to local funding streams.  He informed Members that the revenue support grant would disappear altogether by 2019/20 as well as there being a review of business rates. These changes along with the uncertainty of the Country’s exit from the European Union made the need to plan carefully and to monitor regularly even more important than in the past.  He referred Members to the potential shortfall of just over £0.46million indicated for 2019/20 but he was confident that the leadership team and Cabinet would be able to address it. 

Councillor R Blunt commented that there had been uncertainty regarding government funding and the economy for many years, and the proposed prudent approach was important.  He also reminded Members that the Strategy was also based on the continuation of a zero percent increase in council tax.

Councillor R D Bayliss referred to the council housing section of the strategy and explained that there were some constraints due to the requirement for all social landlords to reduce rents by one percent each year from 2016 to 2019, and the Right to Buy discount funding.  He added that the budget summary was detailed within the report and referred to the new build programme.  Councillor R Blunt commented that there had been a change in direction towards social housing with the Right to Buy scheme and the recently introduced rent controls.  He acknowledged that council housing was a huge part of the Council’s budget.

Councillor N J Rushton stated that from 2018/19 the plan was to reduce the Local Council Tax Reduction/Support Scheme grant to town and parish council’s by approximately 25 percent per annum over a four year period. Other options that saw a quicker reduction in grant had been assessed, but he believed using the 25 percent phased approach was fair and this would need to be communicated to town and parish councils.

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

RESOLVED THAT:

1.   The Medium Term Financial Strategy be approved.

2.   The authority to make minor amendments to the Medium Term Financial Strategy be delegated to the Interim Director of Resources in consultation with the Corporate Portfolio Holder.

Reason for decision: Requirement of the budget setting process.