RESOLVED:

1.    That the rolled forward MTFS for 2019 – 23 be noted.

2.    That the latest position with regards to savings already in the MTFS be confirmed.

3.    That the approach to setting a balanced budget using the unmet balance of last year’s savings targets as the basis for the setting of targets for 2019-23 be agreed.

4.    That the proposed savings targets be agreed.

5.    That the timetable for the Business Plan 2019-23 including the revenue budget 2019/20, the MTFS 2019-23 and the Capital Programme for 2019-23 be agreed.

6.    That the process for the Service Plan 2019-23 and the progress made so far be noted.

7.    That the information regarding the London Business Rates Pool - Strategic Investment Pot set out in Appendix 3 be noted and authority be delegated for future action regarding the London Business Rates Pool to the Director of Corporate Services in collaboration with the Deputy Leader and Cabinet Member for Finance.

The Deputy Leader and Cabinet Member for Finance presented the report, which set out an initial review of the Medium Term Financial Strategy (MTFS) and updated it for development as part of the business planning process for 2019/20.  The report set out an approach towards setting a balanced budget for 2019-2023 and a draft timetable for the business planning process for 2019/20. It also proposed initial corporate and departmental targets to be met from savings and income over the four year period of the MTFS.

The Cabinet Member advised that many local authorities have experienced financial challenges, losing approximately 62% of their direct grant funding from central government since 2010.  He highlighted the current gap in the budget and the measures which had been put in place to address and deliver savings, as well as future pressures on the budget from an ageing population and children with complex needs.

The Assistant Director of Resources advised that at this stage in the financial year, there was still a degree of uncertainty in the figures.  Guidance was still awaited on the Better Care Fund, the future of the London Business Rates Pool and the Fair Funded Review, all of which could impact on the Council’s budget position.  He drew the Cabinet’s attention to the savings outlined with the report, stressing the need to monitor the delivery of all savings; and highlighted the recommendation to delegate authority to the Director of Corporate Services to take action on the future of the London Business Rates Pool. 

In response to a question from the Cabinet, the Assistant Director of Resources advised that there was a degree of uncertainty around the impact of Brexit on the future funding formula, however the Council was looking at a number of measures to increase resilience and discussions would continue to take place with the Local Government Association.

The Leader of the Council welcomed the report and the proposed approach to business planning with the aim of protecting vulnerable residents and presenting a balanced budget, which would be subject to the Council’s scrutiny process.

The Cabinet agreed the recommendations in the report.

RESOLVED:

1.    That the rolled forward MTFS for 2019 – 23 be noted.

2.    That the latest position with regards to savings already in the MTFS be confirmed.

3.    That the approach to setting a balanced budget using the unmet balance of last year’s savings targets as the basis for the setting of targets for 2019-23 be agreed.

4.    That the proposed savings targets be agreed.

5.    That the timetable for the Business Plan 2019-23 including the revenue budget 2019/20, the MTFS 2019-23 and the Capital Programme for 2019-23 be agreed.

6.    That the process for the Service Plan 2019-23 and the progress made so far be noted.

7.    That the information regarding the London Business Rates Pool - Strategic Investment Pot set out in Appendix 3 be noted and authority be delegated for future action regarding the London Business Rates Pool to the Director of Corporate Services in collaboration with the Deputy Leader and Cabinet Member for Finance.