Agenda item

That the Medium Term Financial Strategy 2015-19 be approved by Council at its meeting on 19th February 2015.

The Assistant Director, Finance & Audit introduced the Medium Term Financial Strategy (MTFS) 2015-19 which set out the background to the Council’s current financial position, future estimates and highlighted some of the key strands to deliver a balanced position over the period of the MTFS.

Government spending on local government had reduced by 25% since 2010 which had had a significant impact on the Council’s budget, reducing by 14% to date and projected to have declined by 22% by the end of the MTFS period.  The Council faced particular financial risks due to its large Business Rate base and rising pressures on services, particularly social care, in comparison to other authorities, however, there was less risk in Council Tax buoyancy with strong growth in the taxbase in recent years. 

The Cabinet discussed a number of issues including the contribution of increased Treasury Management investment returns to offset the savings requirement and the longer term revenue position which indicated that the Council’s income was projected to level off by 2021.  Commissioners discussed the MTFS financial model, as detailed in Table 3.1 of the Appendix, and asked about the savings likely to be required in future years.  The Assistant Director responded that significant savings ranging between £6m and £12m would be required each year to 2019.  Some of these savings had already been identified and the Five Year Plan provided clear direction about where future savings could be achieved.

After due consideration, the Cabinet agreed to recommend the MTFS to Council at it’s meeting on 19^th February 2015.

Recommended –  That the Medium Term Financial Strategy 2015-19 be approved.