Decision details

CAB 42/17 

Medium Term Financial Plan

Options Considered/Reasons for Decision

The Leader presented the report on the Medium Term Financial Strategy, based on the current financial outlook. 

The Chief Executive highlighted the figures relating to Welsh Government budgets and changes in funding levels in the report (Table 1 and Chart 1), and how this impacted upon the local authority’s budgetary pressures.  The Leader reiterated comments made earlier in the meeting, regarding the need to maintain pressure on national governments to improve the funding position of local authorities, and her commitment to drive this forward on behalf of this Council working with colleagues from the WLGA.

In response to a question on the impact of cabinet financing costs on the revenue budget (Table 4 in the report), the Assistant Head of Finance confirmed that the percentages shown would not be impacted significantly by the Friars Walk deal.  The drop shown in the 2019/20 figure was due to the timing of particular repayments and refinancing of borrowing costs.  It was confirmed that the authority continually reviewed borrowing and financing to ensure the best deal possible was in place.

Decision:

1.    To approve the current key planning parameters in setting out the current budget gap for 2018/19 and the medium term, noting that this work is subject to refinement.

2.    To note and approve the current working strategies officers are working under to provide budget solutions to the current financial challenge.

3.    In particular, to approve the working strategy in relation to schools funding in the next financial year which funds school inflation, demographics and school reorganisation pressures whilst noting that this could be reviewed in light of the draft settlement when known;

4.    To agree the approach to the one off funding that was allocated to schools from 2016/17 unused contingency budget.  This was one off funding which is to be reviewed as part of the 2018/19 budget process;

5.    To note the Head of Finance’s comments and observations on the current risks facing the budget, how they are being managed and financial resilience issues;

6.    To note the current level of reserves, projected use and their utilisation in the context of the medium term.

Consultation

Senior Leadership Team and Statutory Officers.

Implemented By:   Head of Finance, Senior Leadership Team and Corporate Management Team to develop budget proposals and discuss with Cabinet; Head of Finance and Chief Education Officer to discuss schools funding strategy with schools / schools’ forum and develop plans to meet the financial challenges of the funding strategy outlined.