Issue - meetings

RESOLVED TO RECOMMEND that:

the revised Medium Term Financial Strategy for the period 2019/20 – 2023/24, including the recommendations at Section 2 of the Strategy be approved.

Decision

RESOLVED TO RECOMMEND that:

the revised Medium Term Financial Strategy for the period 2019/20 – 2023/24, including the recommendations at Section 2 of the Strategy be approved.

Corporate objectives

The Medium Term Financial Strategy supports the delivery of all five of the corporate objectives.

Advice

Councillor Elliot introduced the report and the MTFS looks at the general fund savings target be approved for the financial year. The four year general fund savings target is £2.9 million. The council are still awaiting the announcement of the government’s spending review.

J Deane said the £2.9 million savings target represents 17% net cost of services which is a significant amount of money to find. Next year, the savings target is £780k. However, as a result of the Council’s multi-year approach to savings, significant inroads have already been made to that figure leaving £130k still to find.

J Deane highlighted a number of fundamental assumptions within the MTFS. The council is in the final year of a four year deal and at present there is no certainty on future years’ funding as we are awaiting the announcement of the Fair Funding Review which is scheduled for the end of this year. Until further announcements are made, the MTFS assumes continued reductions in future government funding of the magnitude experienced over previous years, resulting in the Council becoming self-sufficient by 2022/23. There is a risk that cuts could be deeper and faster than this but this is unlikely. The New Normal programme will look at cross departmental savings.

Councillor Williams said he was sceptical that an announcement from government would be made by the end of the year.

J Deane said if there is no announcement this year, and there is a roll forward of current funding arrangements in the interim then it would be prudent for the Council to treat any resultant benefits as one-off, and continue to meet the savings outlined until Government makes a formal funding announcement.

Councillor Tindall said he could not see an update on the New Normal programme on the Cabinet forward plan.

S Marshall said it would be brought forward with the budget report and it will be brought to Cabinet if there are any actions required.

Councillor Anderson asked about the annual settlement on staff pay and if there was any information for next year.

S Marshall said they were currently in negotiations. There has been a pay request from Unison for a 10% pay increase, a reduction in the working week by 2.5 hours and an extra day holiday. This is obviously their starting position and negotiations will be ongoing. The roadshows start in September so we will get more clarity then.

Councillor Anderson said it was frustrating that the decision gets put off.

S Marshall said there was a two year settlement last year which helped.

The recommendations were agreed.