Issue - meetings

Report by the Corporate Director, Resources

Cllr de Rhe Philipe presented a report which updated Cabinet on the progress towards developing the Council’s Medium Term Financial Plan (MTFP) covering the five year period up until the financial year 2014-15.

Having set the budget for 2010-11, the Council was now preparing it’s MTFP which would enable strategic planning on how to manage its future resources. It was noted that following the forthcoming general election, irrespective of the result, it was widely forecast that local government would face a challenging environment of spending pressures, increased demand and restrained finance settlements.

The assumptions of the financial model were outlined – notably the Council’s commitment to minimise Council tax increases and that correspondingly from 20011-12 onwards the MTFP model assumed there would be zero Council tax increases. In terms of the General grant it was assumed that this would decrease at a level between 10% and 20% over the 4 year period. Pay and Inflation was modelled assuming an ongoing annual pay award of 0.5% and inflation of 2.5% per annum.

A number of spending pressures were identified within the report in three main areas – Statutory and Legislative changes, Demographics and Delivery of the objectives of the Corporate Plan. Furthermore existing and possible future efficiencies were outlined.

The Chief Executive explained the intention to produce a new Business Plan for the Council which would sit alongside the MTFP. This would show how the Council would deliver the business in the MTFP which would in turn deliver the Corporate Plan. Whilst the Corporate Plan would identify the Council’s priorities, individual service plans would provide further details on departmental activities.

Resolved:

That the report be noted

Reason for Decision

That members are aware of the scale of the challenge facing the council and the plan being developed to address this challenge.