Issue - meetings

As detailed in the recommendation.

The Chief Executive introduced the report which set out the financial forecast for 2018/19 as part of the refresh of the Medium Term Financial Strategy (MTFS).

The original forecast for the 2018/19 financial year, the third and final year of the current MTFS, set a likely ‘gap’ between the total spending requirement and anticipated income of £6.2m.  When discounting any modelling for a Council Tax increase the forecast gap would stand at £8.5m as a true figure.  The forecast had been revised and updated following decisions made as part of the 2017/18 budget, receipt of updated information on national, local and workforce pressures, and updated forecasts on inflation.

The Corporate Finance Manager explained that the revised forecast showed a projected ‘gap’ of £11.7m prior to any modelling for an increase in Council Tax. 

The Chief Executive added that an internal Member workshop was taking place later that day on the MTFS.

Councillor Shotton expressed his concern that if the significant amount of previous cuts reoccurred then this would have an even further negative impact on the Welsh block grant from the UK Government.  If that happened then a balanced budget could not be achieved without the authority making unpalatable decisions.  A cash flat settlement was being assumed but the Council would continue to lobby for better.  The Chief Executive added that a ‘cash flat’ settlement did not take into account things such as inflation and pay awards.

RESOLVED:

That the framework for the revision of the Medium Term Financial Strategy 2018/19 be adopted and the forecast as the first stage be accepted.