51 Medium Term Financial Strategy 2019-2022 - KEY DECISION PDF 179 KB
Minutes:
The Board considered a
report of the Operational Director, Finance, on the Medium Term Financial
Strategy (MTFS) for the period 2019/20 to 2021/22.
The Board was advised
that the MTFS set out a three year projection of resources and spending based on
information currently available.
The projections in the
MTFS showed that there was a continued need to make a significant level of
savings over the next three years. This
was the effect of the projections of public spending through to 2020 resulting
from the 2015 Comprehensive Spending Review and uncertainty from 2020 on
Government plans for public spending and continuity of the austerity programme.
The MTFS took into account the:
· Budget 2018 announced by the Chancellor of the Exchequer on 13 March 2018;
· Comprehensive Spending Review 2015 announced by the Chancellor of the
Exchequer on 25 November 2015; and
· The Local Government Finance Settlement 2018/19 dated 6 February 2018.
The MTFS provided
initial guidance to the Council on its financial position into the medium term.
Revenue savings of approximately £9.8m, £8.2m, and £3.3m would be required over
the next three years. It was noted that
as a result, a total of £21.3m would need to be removed from the Council’s
budget, by reducing spending or increasing income. This represented 19.5% of the net budget and
continued to be a significant challenge to find sufficient savings over the
medium term in order to balance the budget.
The Board was
advised that the MTFS had a number of objectives, as listed in the report. The
report set out the Council’s budget strategy, with budget savings proposals and
areas identified for further savings. The report
contained details of the Council’s Capital Strategy for the management of
assets such as land and buildings in Council ownership.
Reason(s) for Decision
To seek approval for the Council’s Medium
Term Financial Strategy for 2019/20 to 2021/22.
Alternative Options Considered and Rejected
The alternative option
of not maintaining a MTFS had been considered. However, this would not follow
good financial management practice, as the MTFS was a key element in informing
the Council’s financial planning and budget setting processes.
Implementation Date
The MTFS 2019/22 would be implemented from
1st April 2019.
RESOLVED: That
1) the Medium Term Financial Strategy be approved;
2) the 2019/20 base budget be prepared on the basis of the
underlying assumptions set out in the Strategy;
3) the Budget Strategy and Capital Strategy be approved;
4) the Reserves and Balances Strategy be approved; and
5) the award of Council Tax Support for 2019/20 remains at the 2018/19 level of 21.55%.