Agenda item

Resolved to Recommend the approval of:

1. The revised Medium Term Financial Strategy for the period 2016/17 – 2020/21

2. The financial projections within the 5-year Medium Term Financial Strategy

3. A General Fund savings target of £1.33 million for the 2017/18 budget-setting process;

4. A four-year General Fund savings target of £3.6 million for the duration of this Medium Term Financial Strategy;

5. A review  of the Housing Revenue Account base budget and savings target be undertaken as part of the review of the HRA business plan and budget preparation cycle;

6. The Corporate Director (Finance & Operations) working with the Council’s Corporate Management Team and Portfolio Holders to deliver options that will achieve the saving targets identified within the strategy;

7. Authority be delegated to the S151 Officer, in consultation with the Budget Review Group, to consider Government’s proposed four-year Settlement, and, subject to further guidance emerging before October, to accept the offer if appropriate;

8. The Financial Planning Framework to support the budget-setting process for 2017/18;

9. The Corporate Director (Finance & Operations) be requested to revise the Medium Term Financial Strategy and re-present to Cabinet and Council for approval if material changes to forecasts are required following future Government announcements.

Decision

Resolved to Recommend the approval of:

1.     The revised Medium Term Financial Strategy for the period 2016/17 – 2020/21

2.     The financial projections within the 5-year Medium Term Financial Strategy

3.     A General Fund savings target of £1.33 million for the 2017/18 budget-setting process;

4.     A four-year General Fund savings target of £3.6 million for the duration of this Medium Term Financial Strategy;

5.     A review  of the Housing Revenue Account base budget and savings target be undertaken as part of the review of the HRA business plan and budget preparation cycle;

6.     The Corporate Director (Finance & Operations) working with the Council’s Corporate Management Team and Portfolio Holders to deliver options that will achieve the saving targets identified within the strategy;

7.     Authority be delegated to the S151 Officer, in consultation with the Budget Review Group, to consider Government’s proposed four-year Settlement, and, subject to further guidance emerging before October, to accept the offer if appropriate;

8.     The Financial Planning Framework to support the budget-setting process for 2017/18;

9.     The Corporate Director (Finance & Operations) be requested to revise the Medium Term Financial Strategy and re-present to Cabinet and Council for approval if material changes to forecasts are required following future Government announcements.

Reason for Decision

To present to Cabinet the revised Medium Term Financial Strategy for approval.

Implications

Contained within the body of the report.

Risk Implications

The updated strategy reduces the risk of forward projections becoming out of date.

Health & Safety Implications

There are no health and safety implications.

Equality Implications

There are no Equality implications.

Corporate Objectives

The Medium Term Financial Strategy supports the delivery of all five of the Corporate Objectives.

Monitoring Officer/S.151 Officer Comments

Monitoring Officer:  

No comments to add to the report.

S.151 Officer

This is a Section 151 Officer report.

Advice

The Corporate Director for Finance and Operations explained that the Medium Term Financial Strategy (MTFS) incorporated details of the proposed Revenue Support Grant (RSG) and four year settlement.

He explained that the Secretary of State had confirmed that the four year deal would not protect against any ‘unforeseen events’. He referred members to the detail of the deal available to Dacorum from the Revenue Support Grant and the Transitional Grant. He noted that it was only £225k being received in 2017/18 however he felt that the council should still go forward with the deal. Other Local authorities all felt the same.

Members were referred to the proposed structure shown on page 96 of the report and explained that responsibilities would be split and would be discussed through the Corporate Review Group.

The Portfolio Holder for Housing noted the recommendation to Full Council but she queried the level of member involvement.

The Leader of the Council confirmed that he and the Portfolio Holder for Finance & Resources were included in the Budget Review Group.

It was highlighted that the recommendations included within the strategy would also be recommended to Full Council.

The Leader of the Council asked if the four year deal would avoid the council having a negative RSG.

The Corporate Director for Finance and Operations said that if they did not do the deal then the situation could be worse than the current state. There would not be a huge amount of certainty provided from the deal, but it was still a worthwhile option.

Voting

None.