Agenda item

(a)  That the savings set out in Appendix A to the report be included in the Revenue Budget 2016-17 to be approved by Council in February, subject to the final Local Government Finance Settlement, taxbase papers and any further adjustments.

(b)  That the latest financial planning assumptions and the impact of these on future service delivery be noted.

The Assistant Director Finance & Audit introduced a report that summarised the latest financial planning assumptions and included a tranche of savings proposals to move towards the preparation of a balanced budget in the 2016-17 financial year.

The Comprehensive Spending Review would be published on 25^th November 2015 and was expected to provide greater clarity on the level of funding reductions to local government in future years, although it had already been announced that the DCLG had settled with a reduction of approximately 30% over the next four years.  The full implications for the Council would not be known until the Local Government Finance Settlement due in December.  Commissioners noted a summary of the Medium Term Financial Strategy model and underlying assumptions as detailed in sections 5.8 and 5.10 of the report.

The Cabinet was updated on the preparation of the budget for 2016-17, which had focused on the delivery of the 5 Year Plan outcomes. Savings of £29m between 2016-17 and 2019-20 had so far been identified and a series of proposed savings totalling £4.8m in 2016-17 were presented in Appendix A to the report.  If agreed, these savings would be included in the budget to be considered by the Council in February 2016 for final approval.  Most of the proposed savings presented at this stage were either income generation, transformation or efficiency savings.

The profile of the savings programme was discussed and it was noted that the level of savings required was highest in 2016-17 and 2017-18.  Income generation would be key to help close the gaps caused by substantial further reductions in the Revenue Support Grant and the Cabinet also recognised the crucial importance of successfully delivering the savings programme.  Several Commissioners explained in more detail the specific savings proposed under their portfolios, including the merger of the highways and transport teams which would result significant revenue savings.  The success in attracting external funding and support from the capital programme would still enable strategic transport improvements through schemes such as Slough Mass Rapid Transit and A332 and A355 enhancements.

After due consideration, the Cabinet agreed that the savings proposed in Appendix A of the report be included in the 2016-17 revenue budget to be considered by Council in February 2016 and noted that further savings proposals would be presented to Cabinet at future meetings.

Resolved –

(a)  That the savings set out in Appendix A to the report be included in the Revenue Budget 2016-17 to be approved by Council in February, subject to the final Local Government Finance Settlement, taxbase papers and any further adjustments.

(b)  That the latest financial planning assumptions and the impact of these on future service delivery be noted.