Issue - meetings

To consider the head of finance’s report. 

Cabinet considered the report of the head of finance on the changes expected to local government finance.  The Cabinet member for finance reported that the Government’s finance settlement announcement had been deferred.  He advised that it was likely that New Homes Bonus funding would not be available from 2020/21.  This would impact on the council’s medium term financial plan, which projected the budget forward by five years, allowing the council to recognise and plan for changes to local government funding. 

In light of potential future financial pressures, the council had already instigated a number of actions that would help ensure it was best placed to respond to the challenges.  These actions included:

·         pausing non-essential capital spending, pending certainty around future funding  

·         reviewing all base budgets to remove any over-budgeting 

·         curtailing the discretionary growth bid process during budget setting for revenue and capital spending 

·         commissioning the Chartered Institute of Public Finance and Accountancy to assist with work on benchmarking the base budget with other councils and on a commercial strategy 

The Cabinet member for finance, in speaking to the report, recommended that as part of the council’s 2019/20 budget setting, the capital programme should include essential schemes only, and all other capital schemes should form a preparation pool of schemes to be considered when affordable.  Cabinet agreed that this was prudent, given the council’s uncertain medium to long term financial position. 

RESOLVED: to

(a)      note the report; and

(b)      instruct officers as part of 2019/20 budget setting, to revise the capital programme to include only essential schemes, with all other schemes forming a preparation pool of schemes to be considered when considered affordable.