Agenda item

[To approve a draft budget and savings proposals for the basis for consultation

Cllr Andrew Johnson presented the report which identified additional savings proposals for 2016/17 and future years in accordance with the strategy set out in the Budget 2015/16 and Medium Term Financial Strategy (MTFS) 2015/16 to 2018/19 report, approved by Full Council in March 2015. The savings proposals and base budget revisions had been further developed in recent months having initially been reported to Cabinet in July 2015.  Approval was requested to use the budget and savings proposals as the basis for consultation.

Resolved:

1.    That the Savings, Redesign and Income Generation proposals amounting to £14.1 million in 2016/17 proceed to the formal consultation and scrutiny stages of the budget process.

2.    That the Financial Transactions and Base Budget Revisions totalling a net reduction of £7.1 million in 2016/17 be incorporated into the 2016/17 draft budget.

3.    That the adjustments to the 2016/17 July Budget projections, totalling £2.049 million, as detailed in Appendix C to the report, be incorporated into the 2016/17 draft budget.

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

5.    That authority be delegated to the responsible Cabinet Member and the Cabinet Member for Resources in consultation with the responsible Director and the Director of Finance to implement financial transactions, base budget revisions, efficiencies and income generating opportunities at the earliest opportunity where the proposal is not reliant on the outcome of formal budget consultation.

6.    That it be noted that because the future remains extremely uncertain a full update to the Medium Term Financial Strategy (MTFS) 2016/17 – 2018/19 would  only be conducted once the Spending Review and the Provisional Local Government Finance Settlement have been announced, on 25 November and mid-December 2015 respectively.

7.    That it be noted that a review of the anticipated assumptions and projections built into the Draft Budget and Medium Term Financial Strategy 2016/17 – 2018/19 had been undertaken following the Government Summer Budget 2015 announcement  which indicated that there would be some additional cost pressures and potential further cuts to grant, in addition to reviewing existing assumptions concerning the successful delivery of significant levels of challenging savings. This had resulted in the savings target for 2016/17 being revised upwards from £22.0 million to £24.0 million. It is important to note, that this new savings target for 2016/17 still includes a prudent uplift of £5.2 million due to the extremely uncertain times within which the Council is operating.

8.    That it be noted that when identifying savings proposals key focus continues to be placed upon the Council’s strategic approach to addressing the projected budget deficit, which is to: manage demand for core services by using early intervention to help families in trouble live unsupported and independent lives; improve educational attainment and skills, and to encourage enterprise and business and private sector employment and to stimulate economic activity through capital investment.

9.    That it be noted that due to the uncertainty surrounding the future of public finances in 2016/17 and beyond, the projected additional savings requirement in each of the next three financial years could still change significantly as more information becomes available.

10. That it be noted that due to the current level of uncertainty medium term financial planning has been restricted to a three year period in the Medium Term Financial Strategy.

11. That it be noted that a comprehensive review of all service areas, led by Finance, was undertaken to challenge all areas of underspend and identify any recurring savings which may contribute towards the savings strategy for 2016/17. The results of this review have been included in the proposals and base budget revisions included in this report.

12.That it be noted that the Council’s General Fund Balance stands at £10.0 million; the minimum balance as determined in the Council’s approved Reserves and Balances Policy. This is in accordance with the planned approach as set out in the Council’s MTFS, approved by Full Council on 4 March 2015. Emphasis had therefore been placed on identifying budget savings to meet the approved savings strategy for 2016/17 and later years without calling on these general reserves.

13. That it be noted that the 2016/17 budget timetable would, as in previous years, include an updated report presented to Cabinet in January 2016 detailing the outcome of the Provisional Local Government Settlement, with the final budget report being presented to Cabinet in late February and then Full Council in March 2016 for final approval.

14.That it be noted that the overall level of risk associated with the Draft Budget and Medium Term Financial Strategy 2016/17 to 2018/19 continues to be assessed as Red.