Decision details

The report to Cabinet forms part of the council’s formal Budget and Policy Framework. This requires Cabinet to initiate and propose service proposals and updated assumptions to set a balanced and sustainable budget for the financial years 2019/20 to 2021/22.  The purpose of this report is to:

?     Recommend that Cabinet approve the Tranche One service proposals.

?     Recommend that Cabinet approve the budget assumptions to update the Medium Term Financial Strategy (MTFS), to ensure estimates reflect the most up to date information available.

?     Outline the financial challenges facing the council in setting a sustainable and balanced budget for MTFS 2019/20- 2021/22.

?     Outline the resources required, to undergo project work to develop and implement new transformational strategies, which will unlock future financial benefits for the council.

?     Outline the approach the Council is taking to close the budget gap over the three year budget planning horizon to deliver a sustainable budget.

?     Outline potential avenues the Council is considering pursuing to ensure future budget sustainability.

Cabinet considered the report and RESOLVED to recommend to Council:

1.   The Tranche One service proposals, outlined in Appendix D.

2.   The updated budget assumptions, to be incorporated within the Medium Term Financial Strategy 2019/20- 2021/22. These are outlined in section 5 of the report.

3.   The revised capital programme approach outlined in section 5.8 and referencing Appendix C.

4.   The additional resourcing of £1.4m, required to deliver transformation projects, in order to achieve future financial benefits. These are outlined in section 5.6 of the report.

5.   The Medium Term Financial Strategy 2019/20-2021/22- Tranche One, as set out in the body of the report and the following appendices:

·        Appendix A – 2019/20-2021/22 MTFS Detailed Budget Position- Tranche One

·        Appendix B – Performance Data

·        Appendix C – Capital Schemes

·        Appendix D – Budget Consultation Document, including Budget Proposals

·        Appendix E – Equality Impact Assessments

·        Appendix F – Budget Consultation Feedback

Cabinet RESOLVED to note:

6.   The future strategic direction for the Council outlined in section 5.7 of the report.

7.   The forecast reserves position outlined in section 5.9 of the report.

8.   The feedback received on the budget proposals, received via the consultation detailed in Appendix F.

There is a legal requirement to set a balanced budget for 2019/20.

No alternative option has been considered as the Cabinet is responsible under the constitution for initiating budget proposals and the Council is statutorily obliged to set a lawful and balanced budget by 11 March annually.

Cabinet Report 16/07/18 - Medium Term Financial Strategy 2019/20 to 2021/22 - Tranche One