Issue - meetings

Report of the Strategic Director of Housing and Customer Services

Presented by the Corporate Portfolio Holder

The Head of Finance presented the report to Members.

She advised that the report provided a summary of the first review of the assumptions of the Medium Term Financial Strategy that was approved by Council in February and it gave Members an update in respect of the Journey to Self-Sufficiency Programme. She stated that the review had re-assessed the assumptions that drove the medium term financial plans of the General Fund and Housing Revenue Account in light of the Government’s spring statement and financial outturn of the Council for the 2017/18 financial year. She highlighted that the revisions on the General Fund had resulted in a favourable movement in the 5 year savings target, bringing it down by £770k, from £5.3m over the period to £4.6m and that the Housing Revenue Account 5 year projections remained positive with balances building until 2022 for the purposes of repaying two maturity loans totalling £13m which fall due in that year.  She added that the future projected funding shortfall previously reported of £62m between 2041 and 2048 had reduced significantly to £33m over the same period due predominantly to a re-alignment of CPI forecasts over the 30 year plan which drove assumed rental income.

She informed Members that in respect of the Journey to Self-Sufficiency Programme, the commercial strategy was now in an early draft and was expected to come to Cabinet for approval later in the current financial year, and that savings in respect of a second phase of management restructures had delivered savings of £36k and £32k for the General Fund and Housing Revenue Account respectively, and early work that would deliver savings from the Council’s support services in relation to the outsourcing of leisure was progressing well with initial savings of £20k identified. She advised Members that a revised Medium Term financial plan for the Council and a further update in respect of the Journey to Self-Sufficiency Programme would be delivered to Cabinet in December as part of the review of the draft 2019/20 budget proposals.

Councillor R Blunt stated that in a time of financial uncertainty the report before them showed that the Council had taken the required steps to deliver balanced budgets and therefore there was no current requirement to raise Council Tax or charge for brown bins.

Councillor R D Bayliss stated that the report in front of them outlined how good the Authority’s treasury management was.

It was moved by Councillor R Blunt, seconded by Councillor T Gillard and

RESOLVED THAT:

1.    The impact of the review of the Medium Term Financial Strategy on the Council’s projected financial position be noted; and

2.    The progress of the journey to self-sufficiency programme be noted.

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