Issue - meetings

To enable Cabinet to:

•        Consider the updated financial baseline for 2017/18; and

•        Consider for approval the detailed budget proposals for a revised budget 2016/17 and original budget for 2017/18.

(a)  Cabinet agrees the updated Financial Baseline 2017/18 and the detailed budget proposals (including fees and charges and special expenses), as set out in the Appendices to item A.7 of the Report of the Finance, Revenues and Benefits Portfolio Holder;

(b)  Cabinet requests the Corporate Management Committee’s comments on the Updated Financial Baseline 2017/18 and detailed budget proposals (including special expenses); and

(c)  all future expenditure in 2016/17 be in line with the proposed revised budget 2016/17 set out in the aforementioned Appendices, subject to final approval by Council at its meeting to be held on 7 February 2017, and that the corporate financial system be amended accordingly to reflect those changes along with any amendments arising from revisions to the code of practice relating to the presentation of the Council’s annual Statement of Accounts

Councillor Broderick had earlier declared a non-pecuniary interest in this item insofar as she was a member of the Citizens Advice Bureau.

There was submitted a report by the Portfolio Holder for Finance, Revenues and Benefits, which sought to enable Cabinet to:

·                Consider the updated Financial Baseline for 2017/18; and 

·                Consider for approval the detailed Budget proposals for a revised budget 2016/17 and original budget for 2017/18, including special expenses.

Cabinet was informed that the updated financial baseline set out how the financial and budget position of the Council for 2017/18 had progressed since Cabinet had considered the Initial Financial Baseline for 2017/18 at its meeting held on 5 August 2016.

Members were reminded that, during the year the Council had accepted the Government’s minimum Revenue Support Grant (RSG) offer which meant that unless the Government made any further changes, the minimum level of funding receivable over the next three years was as follows:

2017/18 - £1.650m (reduction over prior year = 36%)

2018/19 - £1.070m (reduction over prior year = 36%)

2019/20 - £0.422m (deduction over prior year = 60%)

Members were aware that since 2011/12 the Council had found savings totalling £12.000m. However, given the significant reductions in RSG set out above, further savings of potentially £5.000m were required over the next three years, with £1.565m required in 2017/18 alone.

It was reported that a number of actions had been taken with the aim of delivering a balanced budget for 2017/18. To date, a budget ‘gap’ of £0.603m remained. Work remained on-going to minimise that ‘gap’ before final recommendations were made to full Council in February 2017.

A summary of the budget adjustments made along with other changes that had emerged during the budget setting process was set out in the report. Although additional costs and other adjustments had emerged, net savings /budget reductions totalling £0.962m had been identified to date.

Cabinet was asked to note that the savings identified to date represented only the initial steps to close the forecasted funding gap in the longer term. Further uncertainties also remained against this overall backdrop which might not yet have been reflected in the forecasted budget ‘gaps’ in future years that might require additional savings to be identified in order to deliver a balanced and sustainable budget in the future.

Cabinet was made aware that the medium term forecast covering the period 2018/19 and 2019/20 was in the process of being updated with the outcome planned to be presented to Cabinet in January 2017 when the final budget position would be presented. It was difficult to forecast any further ahead at this stage given the huge level of uncertainty that the 100% retention of business rate model would introduce from 2020. The longer term forecast would remain a ‘live’ activity and updates would be provided to Members as the forecast evolved over 2017/18.

The Interim Finance, Revenues & Benefits Portfolio Holder made the following statement on the Budget:

“The budget presented in the report brings together the savings strands  ...  view the full minutes text for item 135