Agenda item

(a)  That the Government’s offer of funding stability in respect of Revenue Support Grant over the period 2016-20 be accepted.

(b)  That the final efficiency statement document be delegated to the S151 officer and lead commissioner to review, based on previous information presented to members setting out the Council’s financial plan.

The Interim Assistant Director Finance & Audit introduced a report on the Government’s four-year Revenue Support Grant (RSG) funding offer to local government.  The Cabinet had noted the offer to the Council at its meeting on 18^th July 2016 and had decided to defer a final decision closer to the October deadline once there was further clarity on the Government’s post-Brexit spending plans.

Accepting the Government’s offer would give the Council a greater degree of funding stability for the four year period between 2016-17 to 2019-20 and it was considered unlikely that the Council would receive a higher RSG settlement in future years if it did not accept the offer.  The Council would be required to submit an Efficiency Statement if it accepted the offer and it was proposed that delegated authority be given to the Interim Assistant Director to finalise and submit this document following consultation with the Commissioner for Finance & Strategy.

The Cabinet agreed that accepting the offer would be advantageous to the Council’s financial planning as it provided greater certainty at a time of substantial and continued reductions in Government funding.  Speaking under Rule 30, Councillor Swindlehurst asked for clarity about the possible action the Government may take if the Council did not adhere to the Efficiency Statement.  It was responded that the Government had not set out its approach to scrutinising and monitoring Efficiency Statements.

At the conclusion of the discussion, the Cabinet agreed to accept the offer of funding stability through the four-year settlement as detailed in section 5.2 of the report, and gave delegated authority to the Interim Assistant Director to finalise the Efficiency Statement.

Resolved –

(a)  That the Government’s offer of funding stability in respect of Revenue Support Grant over the period 2016-20 be accepted.

(b)  That the final efficiency statement document be delegated to the S151 officer and lead commissioner to review, based on previous information presented to members setting out the Council’s financial plan.