Agenda item

Medium Term Financial Plan and Efficiency Statement 2017-2021

 Report by Dr Carlton Brand and Carolyn Godfrey, Corporate Directors



 Councillor Dick Tonge presented the report which enabled the Cabinet to consider and assess its medium term financial plan, and the four year funding offer from Government.


Issues discussed during the course of the presentation and discussion included: that the technical consultation document was available on the website; that the Council was working with the LGA, County Council Network and society of County treasurers to address wider issues; how a four year settlement would give the council some ability to plan; how the reduction in the revenue support grant would be offset by the income from business rates, but that a funding gap would still need to be addressed; that this would amount, it was estimated, to be a required saving of £45m over four years; that the use of capital receipts, not normally to be used for revenue, but may be able to be released to fund some restructuring revenue costs; how commercialisation and trading of services can be used to offset the removal of subsidies from non-core services, and how services can be traded.


Councillor Simon Killane, Chair of the Overview and Scrutiny Management Committee, highlighted the engagement of Scrutiny, and invited Councillor Glenis Ansell, Chair of the Financial Planning Task Group, to give a more detailed response.


Councillor Ansell noting the challenging timeframe for Councillors and officers to respond to the Government’s consultation, stated that the Group had looked at forecast and there were areas were possible savings could be made. She drew the meeting’s attention to the recommendations and the information highlighted in the Task Group’s response to Overview and Scrutiny Management Committee


In response to an issue raised in the recommendations, Councillor John Thomson invited the Overview and Scrutiny Management Committee to consider appointing a Scrutiny Member to the board of the One Estate project board, as he believed this may be a more efficient way of gaining insight into its work rather than creating a separate Task Group. Councillor Killane stated that this offer would be considered by the Committee


Councillors present were encouraged to attend the Members’ briefing on the Budget on Thursday 13 October,  which would offer further opportunities for Members to ask question on the MTFP ahead of the Council meeting on Tuesday 18 October.




To recommend to the meeting of Council:


1.    That the Efficiency Statement at Appendix A for submission to the DCLG, subject to conditions at paragraph 2.7of this report, as part of the conditions to accept the current four year funding ‘deal’ offered by central government.


2.    That subject to conditions at paragraphs 2.6 and 2.7 of this report, as part of its Medium Term Financial Plan (MTFP) set out a Council Tax increase of 2% each year for 2017-2020. Noting that this does not fetter future administrations from having a lower Council tax increase should further savings be made.


3.    That subject to conditions at paragraphs 2.6 and 2.7 of this report, as part of its MTFP set out a Social Care Levy increase of 2% each year for 2017-2020.


Reason for Decision:


To meet Government’s requirement to accept the four year funding offer and thus the statutory requirement to set the Council Tax and Social Care Levy. The final calculations will be reported to Council in February 2017 once the final government offer and precepts from partnership bodies are known.

Supporting documents: