Issue - meetings

(a)       That the report be noted;

(b)       That the Committee’s comments be forwarded to Cabinet for their consideration. 

The Head of Finance introduced a report to present the updated Medium Term Financial Plan (MTFP) 2014/15 to 2018/19 for consideration. 

The Chief Executive and Head of Finance provided a presentation with the main features being as follows:-

·        The ‘Bigger’ Picture Context

·        Organisational & Financial Planning

·        MTFP and MTFS

·        MTFP – Continuous Development

·        Why have two MTFP ‘revisions’?

·        Re-setting the MTFP – May 2013 and October 2013

·        Headline Overview – May 2013

·        Assumptions behind the figures

·        Funding – the biggest uncertainty/ where we were

·        Beyond Scenario 3?

·        English Style Reductions?

·        WG Funding – possible levels/sensitivity

·        Surviving with much less

·        MTFP & Budget Timetable – key dates

Councillor Patrick Heesom welcomed what might come forward in the next update in October 2013, but reiterated his concerns about the financial planning framework.  He felt that the approach being taken would not fill the funding shortfall which had been reported in the presentation and suggested that no amount of financial planning would avoid the need for political decisions.  He commented on the use of base budgets and referred to the comments of Councillor Arnold Woolley at the previous meeting. 

The Chief Executive responded that the starting point for the plan was the amount of Revenue Support Grant and the predictive income from the Government.  A significant amount of work was ongoing which included looking at over/underspend trends and discussions would need to include reprioritising some services and possibly losing others.  He felt that there would be significant challenges ahead and that it was important to plan for the next four to five years. 

The Leader of the Council felt that the presentation included a very stark and overwhelming message and said that these were projections from a national perspective and that national negotiations still needed to be undertaken.  He commented on the likely reduction in budgets from Welsh Government and said that if it followed the English way and protected the NHS at the behest of government services, then there needed to be an element for social services too.  He explained that discussions were ongoing and added that early clarity from WG about issues such as funding of specific grants was awaited. 

In response to a question from Councillor Haydn Bateman, the Head of Finance said that for planning purposes, a 3% rise in Council Tax had been assumed but this was not a policy decision which had been taken for 2014/15 and later years.  The Leader reminded Members that this had been the position taken by the previous administration and that it had not been changed at this stage.  The Head of Finance explained that a 1% rise in Council Tax would result in an increased amount of income of £0.500m. 

Councillor Nancy Matthews asked whether consideration of collaboration with other authorities had been considered.  The Chief Executive said that the issue of localities for social care would need to be considered. 

RESOLVED:

(a)       That the report be noted;

(b)       That the Committee’s comments be forwarded to Cabinet for their consideration.