Issue - meetings

Background:

This report set out the major financial issues facing the Council over the next four years. It also provided a framework for the more detailed preparation of the draft Revenue Budget for 2016/2017.

The report included details of the Council’s financial position, together with an overview of the Government’s spending plans 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 in the report and accompanying appendices. It was also noted that 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 the impact on Council services unfolded.

It was reported that there was a forecast deficit of £13.8m in 2016/2017, which increased to over £41m by 2019/2020. This gap was largely attributable to the projected reductions in Revenue Support Grant from £38.8m in 2015/2016 to around £7.4m by 2019/2020. 

Notwithstanding the service pressures impacting on the Council’s budget requirement and the significant financial constraints imposed through Government grant reductions, it was noted that it must remain the Council’s main strategic aim to achieve a sustainable budget without recourse to reserves. That aim would only be achieved through a combination of focussing resources on services that deliver the Council’s corporate priorities, by delivering these services more efficiently through, among other things, digital transformation and by seeking to maximise all revenues, including local taxation and fees and charges.

It was noted that the Business Support Overview and Scrutiny Committee would be considering the report on 8 October 2015.

Reasons:

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