Issue - meetings

As detailed in the recommendation.

The Leader and Cabinet Member for Finance presented part one of the latest revision of the Medium Term Financial Strategy (MTFS) which set out the financial forecast for the Council for 2015-2018. 

Producing an accurate medium term forecast in a period of fiscal and economic uncertainty was extremely challenging as there was no certainty over future levels of the main revenue support government grant that underpinned the Council’s overall funding.  Therefore, a number of assumptions had been made in arriving at a forecast.

The Chief Executive explained that the MTFS was in two parts, the first part being the production of a medium term forecast and the second being solutions to the funding ‘gaps’.

A summary of the financial picture for the three year period was detailed in the report and predicted a total funding ‘gap’ of £52.8m.  To deal with the projected funding gap, Chief Officers and Cabinet Members had reviewed options for 2016/17 – 2017/18 drawing on the developing business plans for each portfolio which was in addition to work on options for corporate financing choices.  It was those options, building on the strategies for organisational change and service reform already being implemented, which would form the second part of the MTFS on solutions to bridging the funding ‘gap’. 

The report and MTFS had been considered at Corporate Resources Overview and Scrutiny Committee the previous week and would be submitted again to that Committee in July.  Full Member engagement on the development of the second part of the strategy was also being planned for the summer months.

The Chief Executive added that the Chancellor would be announcing the emergency Budget on 8 July 2015 with the consequences for Welsh local authorities being known by the autumn / winter.

The Corporate Finance Manager provided details on some of the assumptions made within the MTFS on the national pressures, such as the Council Tax Reduction Scheme, Discretionary Housing Payments, Impacts of Legislation and Case Law and the Independent Living Fund.

The Leader and Cabinet Member for Finance said the MTFS would provide a better understanding for the public on the scale of the financial pressures faced by the Council.  He added that a key priority in the Council’s Improvement Plan was to ensure the Council was as efficient as possible and said this could be used as a lobbying tool to put a case forward to Central Government and WG.  He commented on the impact of some components such as pay increases which were negotiated nationally but were no longer funded nationally.  Also business rates which were collected locally but then put into a pool - the Council needed to be assured that they were receiving the correct share back.  Issues such as these would be discussed at the Welsh Local Government Association (WLGA) Conference later that week.

The Deputy Leader said the MTFS sent out a clear message on the financial situation and the loss of services across Wales, which should be used by all Members to lobby both  ...  view the full minutes text for item 16