Issue - meetings

Report of the Cabinet Member for Finance detailing the Medium Term Financial Strategy (MTFS) for the period 2018/19 to 2021/22 and providing the budget position for 2018/19 and later years for the General Fund and the Housing Revenue Account (HRA).

DECISION MADE:  (CAB 17/18 20159)

On consideration of the report of the Cabinet Member for Finance, and an amended Appendix 1 and amended Annex 1 in Appendix 2, Cabinet agreed the following:

General Fund

i)  Note the position on the forecast adverse outturn position for 2017/18 as set out in paragraphs 32 to 38.

ii)  Note the revised Medium Term Financial Strategy 2018/19 to 2021/22 as detailed in Appendix 2.

iii)  Note the aims and objectives of the Medium Term Financial Strategy which will be presented to council for approval on 21 February 2018.

iv)  Note that the Executive’s budget proposals are based on the assumptions detailed within the MTFS and that this includes a council tax increase of 5.99 %, 2.99% under general powers to increase council tax without a referendum and 3.00% Social Care Precept in 2018/19.

v)  To note that the report identifies additional general fund pressures totalling £10.07M in 2018/19 as detailed in paragraphs 42 to 46 and 58 to 59 along with the proposed funding mitigations.

vi)  To note that the report identifies direct investment in services totalling £2.46M, with a further sum of £1.18M invested in an Enterprise Resource Planning Programme in 2018/19 as detailed in paragraph 60 along with the proposed funding mitigations.

vii)  To note that further proposals will need to be considered to address the 2019/20 and future years budget gap.

viii)  Notes and recommends to council where appropriate, the MTFS and General Fund Revenue Budget changes as set out in council recommendations i) to xiv).

Housing Revenue Account

xi)  To note that, from 1st April 2018, a standard decrease be applied to all dwelling rents of 1.0%, as set out in paragraph 107 of this report, equivalent to an average decrease of £0.85 per week in the current average weekly dwelling rent figure of £84.57.

x)  To note an increase in weekly service charges of 3% from 1st April 2018 (including supported accommodation) based on a full cost recovery approach – as detailed in paragraph 108.

xi)  To note an increase in the charges to council tenants for garages by 15% and parking spaces by 10% from1st April 2018 as detailed in paragraph 106.

xii)  To note savings totalling of £3.94M in 2018/19 as laid out in Appendix 9.

xiii)  To note and recommend the Housing Revenue Account Revenue Estimates as set out in the report.

xiv)  To note the 30 year Business Plans for revenue and capital expenditure set out in Appendices 7 and 8 respectively, that based on current assumptions are sustainable and maintain a minimum HRA balance of £2M in every financial year.

xv)  To note that rental income and service charge payments will continue to be paid by tenants in 48 instalments across a 52 week period.