Issue - meetings

As per the recommendations.

The Leader and Cabinet Member for Finance introduced a report to provide an overview of the financial challenges facing the Council and a strategic overview of the Council’s medium term financial planning framework and timetable.

            The Leader thanked the Cabinet Members for the work they had been undertaking around the financial challenges facing the Council since taking up their posts following the annual general meeting.  The report set out the clear financial pressures, such as the impacts of Welfare Reform and the shared Welsh Government (WG) and Council commitments to increase schools and social care budgets.  A great deal of work had been undertaken by officers to address the predicted budget gap but further work needed to be carried out urgently to meet the challenges ahead.

            The Head of Finance reported that the forward projections provided by WG show increased in Aggregate External Finance (AEF) of 1.1% and 0.4% in 2013/14 and 2014/15 respectively.  The level of AEF funding to the Council over the proceeding two years had been reduced.  Against the cumulative reduction in funding the Council needs to fund the pressures of growth, demographic growth and service demands, and the impacts of the economic downturn, to protect services and find resources to fund Council priorities for improvement and service growth.  Further discussions will be held with Members over the coming weeks on future financial pressures.

            The Leader confirmed that early discussions would be held with the appropriate Overview and Scrutiny Committee in order to consider how best to develop and refine the current Medium Term Financial Strategy (MTFS).  The Chief Executive commented that Members had contributed well to the progress made through the MTFS and that this should continue through working together to set out the Council’s priorities. 

RESOLVED:

(a)       That the report be noted;

(b)       That the ongoing work on the Medium Term Financial Plan be endorsed; and

(c)        That no changes be made to the 2012/13 budget as set on 1 March, 2012 prior to discussions taking place over the coming months in the light of the more detailed financial forecast and clarity over Council Priorities under a new Council and Leadership.