Agenda item

That the Medium Term Financial Strategy 2014-18, as set out in Appendix A to the report, be approved.

The Assistant Director Finance & Audit introduced the Medium Term Financial Strategy (MTFS) 2014-18 and asked Members to recommend the document to Council.

The MTFS described the challenging funding environment facing the Council in the period to 2018 with Government spending on local government being reduced by 25% from 2010 to 2015 with further reductions anticipated in future years.  The Council’s reliance on Government funding was falling with a growing proportion of income from Council Tax and retained Business Rates.  The Cabinet were informed that the Council’s comparable budget would reduce from £124.7m in 2010 to £97.6m in 2018.  Pressure on services would also increase during this period, partly due to the growing population of Slough.  One of the key pressures was in Children’s Social Care, and particularly the growing number of Looked After Children, for which an additional £3.3m had been made available for 2014/15 with further one off funding if required.  The MTFS financial model in Table 3.1 set out the overall position and Members were advised that significant savings would need to be identified each year through to 2018, particularly in 2015/16 when £14.33m worth of savings would be required.

Members discussed a number of aspects of the MTFS including the impact of various scenarios as described in Table 3.3 and the Corporate Risk Register.  The Cabinet recognised the importance of growing the Council’s income from the Council Tax base and retained Business Rates, for example through housing and regeneration activity and by ensuring Slough continued to be a premier location for business.  Commissioners also commented that despite falling budgets and service pressures, the Council could still make a difference by focusing on clear priorities as had been demonstrated in recent years.  Following due consideration, the Cabinet agreed to recommend the MTFS to Council.

Recommended –  That the Medium Term Financial Strategy 2014-18, as set out in Appendix A to the report, be approved.