Agenda item

(CSP: MEC & MEC1)

Purpose: To adopt the Council’s Medium Term Financial Strategy 2018/19.

Resolved to recommend that Council approves and adopts the Medium Term Financial Strategy 2018/19 to 2020/21.

This decision is not subject to call in as:

·      the item is due to be referred to Council for final approval.

therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 7) concerning the Council’s Medium Term Financial Strategy (MTFS) for 2018/19 to 2020/21. The MTFS was a rolling three year strategy which was built to ensure that the financial resources, both revenue and capital, were available to deliver the Council Strategy. The MTFS was required to be read in conjunction with the Revenue Budget 2018/19, Capital Strategy and the Investment and Borrowing Strategy reports.

The MTFS was designed to:

1)    allocate the Council’s available resources focussing on those determined as most critical in supporting the Council’s priorities and statutory responsibilities;

2)    ensure that capital investment was affordable; and

3)    ensure that the Council had sufficient levels of reserves.

The MTFS was also designed to minimise the financial risks to the delivery of the Council Strategy by providing a clear picture of the resources available and allowing the Council to focus on its priorities.

Councillor Lee Dillon highlighted that there were typographical errors to be amended and recommended that the document be proof read.

In terms of specific points, Councillor Dillon referred to the figure of £5.2m to be raised from savings and income generation (paragraph 7.2 of the summary report). He felt it would be useful to understand how this figure would be split between savings and income generation, and this could create an income generation target.

Councillor Dillon next highlighted a discrepancy in the figures in the Medium Term Financial Model table in paragraph 9.2 of the summary report. This gave a negative Revenue Support Grant (RSG) of £1.79m, however a figure of £1.75m was referred to elsewhere in the report and this needed to be corrected. Keeping to the issue of negative RSG, Councillor Dillon was hopeful that the Government would be lobbied on this matter.

Continuing with the Model table, Councillor Dillon questioned the Council Tax Collection Fund deficit/surplus as this was zero in 2019/20 and 2020/21. Line 19 (one off transitional grant funding) was shown as zero across the three years of the MTFS, he therefore suggested removal of this line. Line 9 (use of capital receipts) was also shown as zero across the three years, however the Capital Strategy and Programme report (agenda item 8) made reference to the use of capital receipts to fund the revenue cost of transforming Council services in 2018/19 and 2019/20. He felt that these figures should therefore be provided in the Model table.

Paragraph 3.3 of the supporting information highlighted savings requirements of £2.8m for 2019/20 and £240k for 2020/21 (this was based on the assumption that Council Tax increases would be at 2% per year). Councillor Dillon highlighted the need to understand the detail around this more fully as soon as possible.

Councillor Chadley gave thanks for this feedback. He would consider these points and provide a response to Councillor Dillon/consider changes to the document where appropriate, again prior to the Council meeting if possible. He agreed with the concerns in relation to negative RSG. Finally, on this item, Councillor Chadley agreed to look through the document and address any formatting issues/correct typographical errors.

RESOLVED to recommend that Council approve and adopt the Medium Term Financial Strategy 2018/19 to 2020/21.

Other options considered: None.