Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the Medium Term Financial Strategy 2019-2024.

RESOLVED:  That the Committee recommended to Cabinet to proceed.

The Service Director - Resources presented a report on the Council’s Medium Term Financial Strategy 2019-2024.

The Service Director – Resources explained that the strategy made references to the uncertainty facing the Council in relation to funding received which had been the case for a number of years.  It was difficult to forecast beyond next year, and that next year would present challenges.  £2.25m saving was required over the next four year period.  Recent consultation from Central Government was suggesting negative revenue, support grants would be funded which would increase our income by £1m.  However, indications were that NHB would decrease next year, and would be ending or replaced subject to further consultation.  The message was to expect income to be halved next year.  For future years the fair funding formula would take out that £1m and more.  Changes to NHB (New Homes Bonus) would result in less funding.  For savings and the budget over the next 4 years,  £700,000 annually would need to be found by 2022/23, as a minimum.  There were likely to be further savings required, preferably funded by income generation or possibly service reductions. 

This was the current picture and basis for setting a budget for next year. 

The Committee were asked to comment on the document.

RESOLVED:  That the Committee recommended to Cabinet to proceed.