Issue - meetings

[To provide an update on progress towards identifying additional budget reduction and income generation targets in order to address the projected £22.2 million budget deficit for 2017/18]

Cllr Andrew Johnson presented the report which provided an update on progress towards identifying additional budget reduction and income generation targets in order to address the projected £22.2 million budget deficit for 2017/18.

The report was the first of the financial year on the budget and Medium Term Financial Strategy (MTFS) and provided an update on some key factors, the timetable for the budget process and the risks in relation to them.

Resolved:

1.     That the budget reduction and income generation targets amounting to £21.9 million in 2017/18, be further developed, including the necessary equalities analyses, for inclusion in the Draft Budget and Medium Term Financial Strategy 2017/18 – 2019/20, to be reported to Cabinet in October 2016 for approval to proceed to the formal consultation and scrutiny stages of the budget process.

2.     That the commencement of initial consultation and/or stakeholder engagement relating to individual budget reduction and income generation opportunities, where this is necessary in order that they can be fully developed ahead of the Draft Budget and Medium Term Financial Strategy 2017/18 – 2019/20 being reported to Cabinet in October 2016 be approved.

3.     That a high level strategy to address the projected budget deficit over the medium term; namely identifying £32.4 million of budget reduction and income generation proposals in 2018/19 and 2019/20; allocating the People Directorate with a target of identifying a further £18.0 million of budget reduction and income generation proposals by 2019/20, with the remaining £14.4 million to be identified by the rest of the Council. The outcome being that the People Directorate and the rest of the Council share the £54.6 million projected deficit in equal proportions overall be approved.

4.     That work starts immediately to identify additional budget reduction and income generation targets to address the projected budget deficit in 2018/19, in order to ensure that a balanced budget can be set.

5.     That the prudent postponement of the previously approved ‘Reduce the Number of Councillors’ budget reduction totalling £90,000 from the Medium Term Financial Strategy in 2018/19, until the outcome of the Boundary Commission work is known be approved. Current indications are that this work would not be complete by 2018/19.

6.     That it be noted that the updated projected deficit assumes the achievement of budget reduction proposals amounting to £37.4 million over the four year period to 2019/20. Having identified budget reductions in excess of £175.0 million over the last six financial years, the extent of the financial challenge over the medium term continues to represent the most significant that the Council has ever faced.

7.     That it be noted that the due to external factors, budget assumptions remain subject to change. This could therefore result in alterations to the financial position faced by the Council.

8.     That it be noted that the while significant progress is being made towards identifying the projected budget deficit for 2017/18; work continues to identify possibilities to deliver the remaining £0.3 million of budget reduction and income generation targets for  ...  view the full minutes text for item 9