Issue - meetings

A report from the Executive Director - Resources is attached. (Key decision – reference number 4924)

(Report No.42)

(7.35 – 7.40 pm)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources (No.42) refreshing the Council’s financial position for the medium term which had been set out in the report to Council in February, including an update on the risks and uncertainties facing local government at this time.

NOTED

1.            That Local Government continued to experience increasing demand for its services during a period of unparalleled uncertainty, as detailed in section 3 of the report. It was important to ensure that the Council’s finances were both resilient and sustainable. The vision was for a 5-year medium term financial plan; a 10-year capital programme; and, a 10-year treasury management strategy, as set out in the report.

2.            The approach being taken to the identification of savings against a framework of nine themes, as detailed in the report. It was planned to bring forward savings proposals in two tranches for 2020/21, in October and December 2019. The proposed timetable was set out in the report.

3.            In response to a question raised, the anticipated timetable for the announcement of the Government’s funding settlement was outlined to Members.

4.            The current assumptions on spend in relation to the NLWA as detailed in table 1 of the report.

5.            In conclusion, Members noted the general financial instability faced by local government and the increasing reliance on grant funding to provide core services. Long-term solutions were required. The difficulties being faced were reiterated and acknowledged by Members.  

Alternative Options Considered: NOTED, that no alternatives had been considered.

DECISION: The Cabinet agreed to

1.            Note the updated financial position over the medium term.

2.            Agree the vision, approach and timetable to develop the 2020/21 to 2024/25 Medium Term Financial Plan.

Reason: Given the uncertainty in the overall funding levels for local government and the framework for its distribution it was essential there was a clear strategy in place to manage the Council’s finite resources over the medium term and for the planning process to be in place early in the financial year.

(Key decision – reference number 4924)