Agenda item

(a)  The Medium Term Financial Strategy contained within the report be noted.

(b)  The savings listed in Appendix A to the report be approved.

(c)  The alignment between the Medium Term Financial Strategy and Five Year Plan at section 6 and the draft outline framework for the refresh of the Five Year Plan for 2018/19 – 2022/23 at Appendix B be noted.

The Service Lead Finance introduced a report that set out the latest position on the Council’s Medium Term Financial Strategy (MTFS) and sought approval for savings for inclusion in the 2018/19 revenue budget.

The Council’s revenue budget for 2018/19 was £99.54m and there would be a continued reduction in government funding for future years as well as increased demand for services.  The Appendix to the report set out £5.27m worth of savings to include in the budget to be considered by the Council for approval in February 2018.  The MTFS provided for £1.39m of growth items in the next year and this would be allocated at a later stage.  Any growth above this level would most likely require further savings to be identified.  Lead Members reviewed the proposed savings outlined in the report and sought clarification on potential impacts of savings including the management review of regulatory services and in legal services.

The Council Tax precept of 3% to support adult social care services had been introduced in the current year and Members asked for more detail on how this funding had been used.  The financial pressures on social care were highlighted and the precept had covered the increased costs of demographic growth, inflationary costs to contracts and the new responsibilities under the Care Act.

A number of other issues were discussed including the management actions being taken to reduce the in year overspend in the current year and the capital investment in key leisure schemes including the ice arena, Langley Leisure Centre and Salt Hill Park activity centre all of which were on track to reopen in the first half of 2018.  The Cabinet also welcomed the approach being taken to ensure that the MTFS and the Five Year Plan refresh were aligned so there was clarity about how the budget would support the delivery of priority outcomes.

Significant concerns were raised about the impact of reductions to First bus services and Members asked what resources the Council could use to work with other operators to retain as many services as possible.  It was confirmed that appropriate support up to £165k for some bus services affected by the First Bus route changes could be made under delegated authority, using earmarked reserves.  The relevant Cabinet Members would be involved in discussions to provide replacement services were appropriate.

At the conclusion of the discussion the Cabinet noted the current position on the MTFS model and approved the savings proposals for inclusion in the revenue budget to be recommended to full Council on 22^nd February 2018.

Resolved –

(a)  The Medium Term Financial Strategy contained within the report be noted.

(b)  The savings listed in Appendix A to the report be approved.

(c)  The alignment between the Medium Term Financial Strategy and Five Year Plan at section 6 and the draft outline framework for the refresh of the Five Year Plan for 2018/19 – 2022/23 at Appendix B to the report be noted.