Agenda item

The Assistant Director, Finance and Audit detailed the key points contained within the Council’s Medium Term Financial Strategy (MTFS). 

The MTFS outlined the financial challenge facing the Council and the different methods and strategies that were being undertaken to meet this challenge. Given the scale of the ongoing reductions in Central Government spend, the Council had, and would increasingly need to, deliver public services in a more joined up, effective and efficient manner. Maintaining the current levels and delivery of existing services was unlikely to be an option to the Council in the future.

The Committee were informed that the Council was well prepared to meet the financial challenges of the coming years. It had a history of ensuring a balanced budget was delivered, as well as over recent years increasing general reserves to a sustainable level to meet the future financial challenges. The Council had successfully delivered a number of change projects in recent years, with a number of the Council’s services being delivered by private sector partners. At the same time, the Council had maintained investment in its infrastructure through the approval of capital budgets to deliver a variety of programmes.

It was highlighted however, that looking at the key outliers, and starting with the funding level and volatility around this, the Council was at a greater risk than many other Councils in its delivery of its services within the funding available to it. This was due to rising pressures within Council services in Children’s and Adults social care, but also because the Council was exposed to risk from Business Rates and falling Government Grants. It was explained that whilst many Councils would face a significant risk from one of these funding sources, Slough was at risk from both of these due to having a large business community and a higher level of financial need for the Borough compared to other Councils.

Clarity was sought regarding business tax rates and the risks associated with them. It was explained that business rate buoyancy highlighted that the fluctuation in business rates had been significant and that the overall rate of growth had been lower in Slough compared to other Councils before 2014. It was anticipated that there would not be a decrease in Central government Business Rates.

Responding to how future spend by the Council would be prioritised, Members were informed that the Five Year Plan focussed on ensuring that the role of the Council, in addressing challenges and opportunities, were defined by providing a strategic approach in prioritising outcomes against allocation of resources.  The cross cutting nature of the outcomes in the Five Year Plan and the introduction of outcome based budget, supported working in a more integrated way with partners and communities to achieve the best outcomes for Slough.

A Member questioned what levels of savings were anticipated from the procurement of the Waste Management Contract and whether there was a possibility of sharing services with neighbouring local authorities. The Committee was informed that achieved level of 35% cost base reduction was the corporate target required and all areas would be expected to contribute to this, including contracts. Sharing services for some contracts was not feasible as a number of the neighbouring local authorities were tied up in long term contracts and it would be difficult to align the contracts to run concurrently. 

The Assistant Director, Finance and Audit confirmed that the Council was not expecting to borrow funds in 2016/17 and had repaid some funds to the Treasury in the current financial year. A query was raised as to what impact any changes in re-valuation of council tax bands for residential properties was likely to have on the council tax base. It was noted that Central Government had no plans to carry out a re-evaluation of residential properties at present. 

Resolved – That details of the Medium Term Financial Strategy 2016/20 be noted.