Issue - meetings

The Corporate Director to submit a report to provide Members with the latest position regarding the estimates for 2017/18 and 2018/19 and the Medium Term Financial Strategy (MTFS).

The Corporate Director submitted a report on the latest position regarding the estimates for 2017/18 and 2018/19 and the Medium Term Financial Strategy (MTFS) following the Conservative Chairs Group meeting held on 13 November 2017.

The Corporate Director explained that the report sets out the latest position on the estimates for the Council as a whole for general and special expenses. The estimated year end position for 2017/18 indicates an underspend against in year approvals of £155k and the main variances set out in paragraph 3.2.3 which are ongoing and have been built into next years estimates, others are non recurring in nature. For special expenses Melton Mowbray an underspend of £7k is forecast.

It was explained that with regard to the 2018/19 latest position there currently is a deficit of £515k on general expenses and a contribution for the special expenses reserve for special expenses Melton Mowbray. This does not take into account any savings or growth proposals. Appendices A and B set out proposals for General Expenses and the net impact of those recommended by Management Team for approval would reduce the deficit by £66.5K in 2018/19 to £449K. It is proposed that this deficit be funded from the spending pressures and corporate priorities reserves.

It was said that with regard to special expenses Melton Mowbray whilst there is surplus on the revenue account of £25k there is also ongoing growth being recommended which is £50k this is being refined and options for funding to be shared with alternate sources are being explored.

The Corporate Director explained that with regards to the Autumn statement this was fairly neutral on local government finances and it is assumed that the 4 year settlement will remain as previously notified however there is no certainty until the finance settlement is released.

It was pointed out that it is not sustainable to continue to draw from reserves to balance the revenue budget going forward and therefore Management Team are developing a budget management strategy. One of the key factors to be resolved is the impact of the waste procurement and the green waste element which could have a significant impact on the bottom line for the Council and it would be prudent to see what the outcome of this is and the impact on the Council’s forward projections.

The Corporate Director further explained that the report provides an update on the business rates pilot bid and the pool. Should the pilot not be successful it will still be necessary to assess the financial position of the pool following the announcement of the finance settlement and therefore delegation is again requested to withdraw from the business rates pool should the modelling across the country demonstrate this is no longer a financial benefit. However at the current time the pool is performing well in terms of surpluses estimated for the current financial year and the indications are that a pilot if successful would see additional funding being retained within the county area.

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