Decision details

Draft Budget and Medium Term Financial Strategy 2020-2021 - 2023-2024

Decision Maker: Cabinet

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To consider progress made towards identifying additional budget reduction proposals in order to address the projected budget deficit.

Decision:

1. That the updated draft budget strategy linked to the Five Year Financial Strategy, including the budget reduction and income generation proposals and one-off funding opportunities, be approved.

2. That it be approved that further options are explored between October 2019 and January 2020 to address the updated projected budget deficit of £3.9 million for 2020-2021 and the medium term, based on the Council’s Five Year Financial Strategy.

3. That authority be delegated to the Cabinet Member for Resources, in consultation with the Director of Finance, to approve the final budget consultation arrangements.

4. That it be noted that, a number of assumptions have been made with regards to the level of resources that will be available to the Council as detailed in section 5 of this report. It is important to note that there continues to be a considerable amount of uncertainty with regards to future income streams for local authorities over the forthcoming multi-year Spending Review period. At the point that further information is known it will be incorporated into future reports to Councillors. Any reduction in the Government’s allocation of funding to the Council would have a significant detrimental impact and further increase the budget deficit forecast over the medium term.

5. That it be noted that, due to external factors, budget assumptions remain subject to significant change, which could, therefore, result in alterations to the financial position facing the Council.

6. That it be noted that the projected remaining budget deficit for 2020-2021 will be in the region of £3.9 million, rising to £20 million over the medium term period to 2023-2024.

7. That it be noted that it is anticipated that the additional adult and children’s social care grant will be sufficient to meet the projected remaining budget deficit in 2020-2021 and therefore enable the Council to set a balanced budget in that year.

8. That it be noted that due to the uncertainty over the medium term, the overall level of risk associated with the 2020-2021 Budget and Medium Term Financial Strategy 2020-2021 to 2023-2024 is assessed as Red.

9. That it be noted that an element of the high-level strategy for 2020-2021 relate to one-off opportunities that can be achieved in 2020-2021.

10. That it be noted that the updated projected deficit assumes the achievement of previously approved budget reduction and income generation proposals amounting to £9.6 million over period 2019-2020 to 2023-2024.

11. That it be noted that the 2020-2021 budget timetable will, as in previous years, include an update on all budget assumptions and the Provisional Local Government Settlement which will be presented to Cabinet in January 2020, with the final budget report due to be approved by Full Council in March 2020.

Report author: Mohammed Hasan

Publication date: 17/10/2019

Date of decision: 16/10/2019

Decided at meeting: 16/10/2019 - Cabinet

Effective from: 24/10/2019

Accompanying Documents: