Issue - meetings

At its meeting on 22 November 2017 the Executive Committee considered the Medium Term Financial Strategy and RECOMMENDED TO COUNCIL that that the Medium Term Financial Strategy 2018/19-2022/23 be ADOPTED, subject to the following amendments:

·           Paragraph 10.3 of the Strategy be amended to read: ‘The previous Medium Term Financial Strategy recognises the likely need for further increases in future years in order to provide the flexibility to deal with the anticipated deficit faced. Although Council finances have improved, and additional revenue streams are now being developed, there may continue to be a need to resort to some measure of further Council Tax increase each year over the Strategy period. The Council will maintain this previous financial strategy, accepting the likely need for future increases, but seeking to maintain the Council Tax to the lowest possible levels’.

·           Table 7 of the Strategy be amended so the heading reads ‘Potential Council Tax Strategy’ and the table includes percentage, as well as monetary, amounts.

Please note: An addendum to the relevant section of the Medium Term Financial Strategy showing the changes recommended is attached. 

58.1           At its meeting on 22 November 2017 the Executive Committee considered the Medium Term Financial Strategy 2018/19-2022/23 and recommended to Council that it be adopted subject to two amendments: Paragraph 10.3 of the Strategy be amended to read: ‘The previous Medium Term Financial Strategy recognises the likely need for further increases in future years in order to provide the flexibility to deal with the anticipated deficit faced. Although Council finances have improved, and additional revenue streams are now being developed, there may continue to be a need to resort to some measure of further Council Tax increase each year over the Strategy period. The Council will maintain this previous financial strategy, accepting the likely need for future increases, but seeking to maintain the Council Tax to the lowest possible levels’; and Table 7 of the Strategy be amended so the heading reads ‘Potential Council Tax Strategy’ and the table includes percentage, as well as monetary, amounts.

58.2           The report which was considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 396-422 and the amended information had been circulated as an addendum to that report.

58.3           The recommendation was proposed by the Chair of the Executive Committee and subsequently seconded.

58.4           Accordingly, it was

                  RESOLVED          That that the Medium Term Financial Strategy 2018/19-                                     2022/23 be ADOPTED, subject to the following amendments:

·      Paragraph 10.3 of the Strategy be amended to read: ‘The previous Medium Term Financial Strategy recognises the likely need for further increases in future years in order to provide the flexibility to deal with the anticipated deficit faced. Although Council finances have improved, and additional revenue streams are now being developed, there may continue to be a need to resort to some measure of further Council Tax increase each year over the Strategy period. The Council will maintain this previous financial strategy, accepting the likely need for future increases, but seeking to maintain the Council Tax to the lowest possible levels’.

·      Table 7 of the Strategy be amended so the heading reads ‘Potential Council Tax Strategy’ and the table includes percentage, as well as monetary, amounts.

To recommend the Medium Term Financial Strategy to Council for adoption.  

That it be RECOMMENDED TO COUNCIL that the Medium Term Financial Strategy 2018/19-2022/23 be ADOPTED, subject to the following amendments:

·           Paragraph 10.3 of the Strategy be amended to read: ‘The previous Medium Term Financial Strategy recognises the likely need for further increases in future years in order to provide the flexibility to deal with the anticipated deficit faced. Although Council finances have improved, and additional revenue streams are now being developed, there may continue to be a need to resort to some measure of further Council Tax increase each year over the Strategy period. The Council will maintain this previous financial strategy, accepting the likely need for future increases, but seeking to maintain the Council Tax to the lowest possible levels’.

·           Table 7 of the Strategy be amended so the heading reads ‘Potential Council Tax Strategy’ and the table includes percentage, as well as monetary, amounts.

62.1           The report of the Head of Finance and Asset Management, circulated at Pages No. 36-60, set out the Medium Term Financial Strategy for 2018/19-2022/23. Members were asked to consider the Strategy and recommend it to the Council for adoption. 

62.2           The Head of Finance and Asset Management explained that the Medium Term Financial Strategy was a key element within the Council’s overall strategic planning framework. It took a five year perspective and was reviewed, updated and rolled forward annually to set a framework for how budget pressures and priorities would be managed within the best estimates of available capital and revenue resources. The Strategy represented a snapshot in time so it was updated regularly to ensure it reflected policy both internally and nationally. Some of the issues which contributed to the uncertainty included the government’s approach to public spending and reducing the fiscal deficit; economic impacts resulting from the country’s decision to leave the European Union; local government finance post-2020; further consultation over the future of the New Homes Bonus Scheme; the government’s approach to 100% retained business rates; and the government’s commitment to devolution. The Council’s forward projections of its financial position were impacted by further reductions in core government grant of £385,000 in the next two years; salary growth pressure in excess of the 1% cap; further significant financial contributions required for the local government pension scheme; the new General Data Protection Requirements; and increasing demand for additional resources to meet a range of service requirements and pressures.

62.3           The Strategy also contained important strategic planning in a number of areas including the increase of Council Tax and the use of New Homes Bonus. The headline recommendations of the Strategy included: Council Tax to be increased by £5 for 2018/19 and with £5 increases thereafter; New Homes Bonus support to the base budget to increase by £200,000 per year, subject to available funding through the Scheme; the Council would operate outside of the Gloucestershire Business Rates Pool in 2018/19 and until such time as the risk from Virgin Media was mitigated; a target for retained business rates income would be reintroduced to the base budget; and the Local Council Tax Scheme would remain unchanged as the default scheme for 2018/19 but a review of the scheme would take place in the first half of the new financial year.

62.4           Referring to the proposed Council Tax rises, a Member indicated that, whilst he understood the Medium Term Financial Strategy changed on an almost daily basis, it was still the Council’s strategy which set out its intentions in how it approached its finances over the next five years. With that in mind, in the previous year the Council had stepped back from declaring that the Council Tax would increase in line with the referendum limit year on year and had changed it more in line with the Council Plan which indicated that the Council recognised a possible need to increase Council Tax but did not set down any firm  ...  view the full minutes text for item 62