Agenda item

That the financial planning assumptions and required level of savings for the period between 2015-19 be noted.

The Assistant Director, Finance & Audit introduced a report which updated Commissioners on the financial planning assumptions and required level of savings for the Council between 2015-19.

The key financial challenges in the Medium Term Financial Strategy (MTFS) were detailed, including continued pressures on the demand for Council services and further significant Government funding reductions.  It was noted that the ‘Delivery of Children’s Social Care’ was included as a challenge although the financial cost and implications for the savings requirement of any new arrangements was uncertain.  Central Government funding in the form of the Revenue Support Grant (RSG) would fall by 30% in 2015-16 which contributed to a savings requirement of £14.5m.  The total savings projected over the period of the MTFS was estimated to be £37m and this would require further service transformation in the coming years.  Members attention was drawn to chart 1.5 of the report which showed the 2015-16 savings identified to date, and it was noted that specific proposals would be brought to the Cabinet in the autumn.

Commissioners recognised the scale of the financial challenges facing the Council over the MTFS period and acknowledged that the Government funding reductions from 2016-17 could be higher than the assumed 20%.  It was noted that whilst the precise figures would vary, the direction of travel over the MTFS was clearly set.  The greater volatility in income, for example from retained business rates, would also be an increasingly important feature of the Council’s finances and Commissioners felt that it was therefore important to take further steps to promote economic growth in the Borough.

Resolved –  That the financial planning assumptions and required level of savings for the period between 2015-19 be noted.