Issue - meetings

The Corporate Director to submit a report giving Members the opportunity to consider a number of key items which will feed into the Council’s Medium-Term Financial Strategy (MTFS) and the 2018/19 budget and service planning preparation process.

The Corporate Director submitted a report to consider a number of key items which will feed into the Council’s Medium-Term Financial Strategy (MTFS) and the 2018/19 budget and corporate planning preparation process.

The Corporate Director explained that 2018/19 will be the third year of the four year funding settlement which was guaranteed with the submission of the efficiency statement. It was said that there is still much uncertainty surrounding the Local Government finance with a fair funding review underway and changes to the New Homes Bonus still on the agenda. It was explained that the Autumn statement is due on 22 November 2017 which may bring further information.

It was said that the budget process and MTFS review is being started and it would be timely to revisit efficiency plans as done with other assumptions as part of this process. It may become necessary to utilise reserves over the life of the MTFS in order to balance the budget whilst longer term savings are identified and delivered as the Council pursues its growth and commercialisation agenda.

It was also explained that a technical consultation is out at present which has proposals to limit council tax to the higher 2% or £5. The council tax was raised by £5 last year and this is included in the forward projections in the MTFS.

The Corporate Director further explained that based on previous experience and inflation forecasts it is proposed that no inflation be provided for non pay costs even by way of a contingency but that 1% be included in the estimates for pay and pay related costs and 2.5% for fees and charges. It was said that the other key issue considered as part of the report is the review of working balances. The risk model attached at appendix B has been updated and confirms that the current level of £640k for the general fund working balance is reasonable. No changes are proposed for the special expenses and HRA working balances.

A handout was distributed amongst Members which proposed a new budget timetable. The Chair explained that this was produced following discussion at the Conservative Chairs meeting and is a way of streamlining the budget setting process as there is an overlap in the current process. A Member expressed his dissatisfaction of taking this process and giving it to an informal body which potentially diminishes the role of the Policy, Finance and Administration Committee and queried whether this was a step towards a cabinet structure. It was noted that the Conservative Chairs meeting cannot make decisions and the purpose of utilising this meeting was to enable ideas to be developed before they were brought forward to the committee for discussion and decision making.

A Member explained that the Council already utilised member away days for this purpose.

The Chief Executive explained that the proposal was seeking to create a clear process and ensure member involvement in the development of ideas and options at the earliest possible stage. It was agreed that  ...  view the full minutes text for item 28