Issue - meetings

As detailed in the recommendations.

Councillor Shotton introduced the report on the next version of the Medium Term Financial Strategy (MTFS) which would be set for the period 2016/17-2018/19.  Republication of the strategy for the period would both meet the agreed three-year planning cycle and forward plan the Council financial strategy to 2019.

            The Chief Executive explained that the Council had adopted a three part strategy of addressing the financial ‘gap’ each year which was: service reform; corporate financial stewardship and working with Welsh Government (WG).  He recommended that the three part strategy be continued.

            Flintshire was a low funded Council and had made the case that it was particularly exposed to the impacts of the significant annualised reductions in public sector funding to meet current and new cost burdens.  The risks to Council performance posed by the financial position would be set out clearly before new Government Ministers once the new Government was appointed following the National Assembly for Wales elections on 5 May 2016.

            The original forecast for the 2017/18 financial year set a likely ‘gap’ between the total spending requirement, and anticipated income, of £13.7M.  That forecast had been revised based on more recent budget developments.  A first iteration of the revised budget forecast for 2017/18 was detailed in Table 1 in the report which was explained in detail by the Corporate Finance Manager with the projected gap revised to £12.20M.

            Councillor Kevin Jones commented that the Single Environment Grant should be included in the document which the Chief Executive responded to say this would be covered in the third part of the strategy, Working with WG.

            Councillor Shotton explained that progress against the approved budget 2016/17 would be monitored and reported through the monthly budget monitoring reports to Cabinet and Corporate Resources Overview and Scrutiny Committee.  The initial forecast as shown in Table 1 would be the subject of ongoing professional review, consultation with Group Leaders and Overview and Scrutiny Committees, consultation with external advisors and representative bodies such as the Welsh Local Government Association (WLGA). 

The business plan proposals would be reported to Overview and Scrutiny Committees for consultation in May and June which was earlier than in previous years.  He commented on the need to continue lobbying WG and seek early discussions with Ministers following the election in May.

RESOLVED:

(a)       That the framework for the revision of the Medium Term Financial Strategy 2016/17-2018/19 be adopted; and

(b)       That the developing portfolio business plans and corporate financial stewardship plans for early consideration with the Overview and Scrutiny Committees be endorsed.