Issue - meetings

Background:

This report set out the major financial issues facing the Council over the next six years. It also provided a framework for the more detailed preparation of the draft Revenue Budget for 2014/2017.

The report included details of the Council’s financial position, together with an overview of the Spending Review 2010, the Council’s strategic priorities and core values and the need for the Medium Term Financial Plan to be able to respond to the changing policy context in which the Council and its partners operated. An assessment of likely available resources and details of a number of key spending issues across the Council’s directorates were set out. Diversity Impact Assessments would be undertaken and reported to Members as part of the budget and service planning process as the quantum of resources and hence the impact on Council services unfolds.

Members were advised of potential deficits for 2014/2015 to 2016/2017 of £16.214m, £18.452m and £11.889m. The cumulative effect of these to known resource declarations was £34.666m, despite allowing for a potential council tax yield of 2% per annum and further savings from the transformational Better for Less programme.

In order to retain the strategic aim of achieving a sustainable budget without recourse to reserves, existing and emerging pressures would be challenged and weight given to the efficiency agenda and the search for more cost effective means of delivery.

The report set out the timetable for the development of the draft budget setting proposals and it was noted that business and service planning would run concurrently, leading to the development of the Council Plan.

It was noted that the Business Support Overview and Scrutiny Committee had considered the report on 19 September 2013 and its comments and recommendations were set out in the report.

Reasons:

This is a preparatory document to meet the budget process and timetable set out within the Constitution.