Agenda item

Report by Executive Director Alistair Cunningham OBE.

Cllr Simon Jacobs, Cabinet Member for Finance and Procurement presented a report which provided an update on the 2020/21 budget setting process and the Medium-Term Financial Strategy (MTFS) 2020/21-2024/25. The report also proposed a new set of financial objectives to help frame the Council’s strategic financial direction.

Jane Laurie asked a question about the Strategy and suggested that it should contain a recognition of climate emergency.  The Leader confirmed that Ms Barry had received a response to her question and this had been published on the Council’s website prior to the day of the meeting. Ms Laurie then asked a supplementary question about the need for additional funding to combat the climate emergency.  Cllr Clewer, Deputy Leader and Cabinet member for Corporate Services, Heritage, Arts, Tourism, Housing, Climate Change and Military-Civilian Integration, provided a verbal response in relation to the funding streams available for the Council, general public and community groups to access in order to tackle climate issues.

The Cabinet noted that the proposal had been scrutinised by the Financial Planning Task Group, who raised a number of comments on the proposals in relation to (i) the need for clarity around the financial objective ‘To generate income through a commercial approach’ and the new financial objectives in general and, (ii) queried whether a corporate contingency budget might be used as an alternative to tight financial control. Cllr Jacobs and Cllr Whitehead, Leader of the Council and Cabinet Member for Economic Development, reported that (i) the Council was in the process of setting up commercial businesses to generate additional funding and details of this had been previously considered by the Cabinet and; (ii) the strategic approach to mitigating against financial risks would include the creation of a corporate contingency/risk provision budget as part of the budget setting process.

Cllr Ruth Hopkinson, Deputy Leader of the Liberal Democrats had no comments on the report.

In response to a comment from Cllr Oldrieve about a concern that the report did not reflect the decision of Full Council in February 2019 acknowledging a climate emergency, Cllr Whitehead and Cllr Clewer explained that the Council’s business plan would contain detail about how it proposed to tackle the climate emergency. Initial funding has been provided through capital budgets with future medium and long term proposals being developed through funding from within the Council’s revenue budgets. 

Cllr Hill provided reassurance that Overview and Scrutiny would be providing an opportunity for councillor involvement in the forthcoming budget setting process, as in previously years.

Resolved:

1.    That the contents of the report be noted.

2.    That the Financial Objectives set out in the report and detailed below under which the Council plans and operates, be approved:

a.    To ensure that the allocation of all resources is policy and evidence led and ensures delivery of the Councils strategic objectives.

b.    To provide strong, robust financial management and control in order to deliver a balanced budget and a sound financial framework including a five-year medium-term financial strategy.

c.    To continue to generate savings and secure value for money through measures aimed at greater efficiency in service delivery and management, including invest to save investments and reductions in activity costs.

d.    To generate income through a commercial approach.

e.    To support local residents and businesses through the current challenging economic climate for Local Government.

f.      To maintain general fund balances at or above the minimum prudent level as determined by the Chief Finance Officer and to add to balances whenever the opportunity arises.

g.    To undertake investment only where a value for money case can be demonstrated. This will include social value.

h.    To keep local taxation increases in line with Central Government set limits.

Reason for decision:

To inform Cabinet of the 2020/21 budget setting and Medium-Term Financial

Strategy processes.