Agenda item

(a)  That the current position regarding the MTFS be noted.

(b)  That the savings set out in Appendix A to the report be included in the Revenue Budget 2015-16 to be approved by Council in February, subject to any further adjustments.

The Assistant Director, Finance & Audit updated Commissioners on the adjustments to the financial planning assumptions set out in the Medium Term Financial Strategy (MTFS) 2014-19 since the previous report to Cabinet in July 2014.  Approval was sought to include the savings package totalling £7.62m as detailed in Appendix A to the report in the revenue budget to be recommended to Council in February 2015.

It was noted that the savings requirement for 2015-16 of £14.5m remained relatively unchanged, however, growth in the Council’s Business Rates baseline, and to a lesser extent its Council Tax base, was forecast to close the savings gap by circa £4m on current projections.  The savings required in 2015-16 were forecast to be the largest of any year of the MTFS, primarily due to the reduction in central Government funding via the Revenue Support Grant which would fall by almost 30% next year.  The total savings requirement over the period of the MTFS was £34m which equated to 30% of the Council’s current net budget, and this did not take into account any financial implications arising from the new arrangements for Children’s Social Care.  It was noted that the directorate pressures of £1.6m in 2015-16 were significantly lower than in previous years.  The bulk of these pressures were in social care services arising from the Care Act which came into effect in April 2015.

(Councillor Swindlehurst joined the meeting)

Commissioners considered the risks including the volatility in Business Rates and discussed the key assumptions in the plan including a Council Tax rise of 1% which would be funded throughout by a Council Tax Freeze Grant.  The proposed savings, which were itemised in Appendix A to the report, were agreed and it was noted that further savings to close the residual gap would be identified over the Autumn to enable a fully balanced Budget to be presented in February 2015.

Resolved –

(a)  That the current position regarding the MTFS be noted.

(b)  That the savings set out in Appendix A to the report be included in the Revenue Budget 2015-16 to be approved by Council in February, subject to any further adjustments.