Agenda item

(a)  That the update on the Medium Term Financial Strategy be noted.

(b)  That the draft savings proposals in respect of 2015-16, as detailed in Appendix A of the report, be approved for inclusion in the proposed budget to full Council in February 2015.

(c)  That the level of restructuring implied within the report, being that this could be in excess of 20 members of staff / posts, be approved.

The Assistant Director Finance & Audit introduced a report which updated the Cabinet on the financial planning assumptions for future years and required savings levels between 2015-19.

A key area of volatility in setting for the budget for 2015-16 was in respect of Business Rates.  Commissioners were informed that whilst the expected Business Rates forecast remained above expectations earlier in the year, it had fallen by circa £1m since the previous Cabinet report in November.  The Assistant Director reported on the key aspects of the Autumn Statement delivered by the Chancellor on 3^rd December 2014 and it was noted that there were no major alterations to the financial planning assumptions arising from the various announcements.  The Local Government Finance Settlement was awaited later in the week and would set out in detail what the Council could expect in 2015-16 in terms of the Revenue Support Grant, other non-ringfenced grants, Education Services Grant and NHS monies to support social care.

Taking into account the £7.62m savings approved by Cabinet in November, the underlying budget gap was currently £3.29m and Commissioners considered proposals for a further £0.7m savings in relation to increasing the Managed Vacancy Factor by 1% and savings following a bus / transport review.  This would leave a further £2.6m which would be allocated across directorates as set out in paragraph 5.7 of the report.  Proposals to close this savings gap would come back to Cabinet for approval before being referred to full Cabinet on 19^th February 2015.  After due consideration, the Cabinet approved the draft savings proposals for inclusion in the proposed budget.

Resolved –

(a)  That the update on the Medium Term Financial Strategy be noted.

(b)  That the draft savings proposals in respect of 2015-16, as detailed in Appendix A of the report, be approved for inclusion in the proposed budget to full Council in February 2015.

(c)  That the level of restructuring implied within the report, being that this could be in excess of 20 members of staff / posts, be approved.