Agenda item

At its meeting on 25 November 2015 the Executive Committee considered the Medium Term Financial Strategy 2016/17-2020/21 and RECOMMENDED TO COUNCIL that the Medium Term Financial Strategy 2016/17-2020/21 be ADOPTED.  

42.1           At its meeting on 25 November 2015 the Executive Committee had considered the Medium Term Financial Strategy 2016/17-2020/21 and had recommended to Council that it be adopted.

42.2           The report that had been considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 14-38.

42.3           The recommendation from the Executive Committee was proposed and seconded. During the discussion which ensued, a Member noted that the five year Medium Term Financial Strategy was based on the Council Plan which would need to be renewed next year. She therefore questioned whether it was the intention that the Medium Term Financial Strategy would be varied as a result of any changes to the Council Plan. In response, she was advised that the Medium Term Financial Strategy would definitely change, and probably in the very near future, for a number of reasons, not least the new Council Plan and the awaited financial settlement from the Government. The Strategy was a working document and therefore would be subject to change throughout its life. Referring to the Treasury Strategy and Minimum Revenue Provisions, a Member indicated that the Council’s approach had been very risk averse since the Icelandic banking crash and he questioned what the new strategy would be. In response, the Deputy Chief Executive indicated that the Council would be looking to diversify its holdings and reduce risk to ensure it had security in investment overall. In addition, the Lead Member advised that the Treasury Management Strategy would be considered and approved by the Council in due course.

42.4           One Member expressed great concern about the large amount of New Homes Bonus which was being used to support the finances of the Council. She was of the view that a larger amount of the monies should go to the communities where houses were being built. The answer provided to the question she had asked at Agenda Item 6 showed that much of the money spent on the one-off programme was going to Tewkesbury Borough Council i.e. elections, planning development etc. so in theory it was actually over 90% that was propping up the Council’s finances rather than the previously agreed 65%. In terms of the community grants budget she noted that not even half of that money had been used this year. She was of the view that the areas in the Borough where there was large scale housing development/completions needed that money for infrastructure etc. In response, she was advised that the New Homes Bonus funding was not allocated for any particular use by the Government and the reason it had been introduced was to force Councils to build houses. The point was taken about the needs of the communities but it should not be forgotten that Section 106 monies were negotiated for that purpose and, further to that, communities could apply for a share of the community grants pot should they wish. The hole in the Council’s budget was very real and ideas were always welcome from Members as to how that could be addressed. Another Member expressed the view that New Homes Bonus had not been introduced to provide money to specific parts of the Borough where housing was built but rather to replace the loss of some of the revenue support budget. With this in mind, he felt it was right that it be used as a general provision to the Borough to provide services across the whole area.

42.5           Having considered the information received, and points raised, it was

                  RESOLVED          That the Medium Term Financial Strategy 2016/17-2020/21 be                          ADOPTED.