Issue - meetings

To consider a report of the Leader of the Council and(Policy, Reform and Finance)

The report outlines the prospects for the Council’s finances for the medium term taking the 2012/13 revenue budget as its starting point and including forecasts for 2013/14 to 2016/17.

The report provides Councillors with a starting point which will inform:

·         The deliberations around priorities and outcomes for the update of the Council Plan;

·         The preparation of medium term business plans covering all of the Council’s services;

·         The development of a balanced and sustainable budget for 2013/14, an updated Medium Term Financial Plan through to 2014/15 and a longer term forecast moving into the next Comprehensive Spending Review period up to 2016/17.

In line with the outcomes to date of the Local Government Resource Review the local government finance settlement for 2013/14 and 2014/15 will be published in December 2012. At this stage the best estimate of the reductions necessary to bring forecast spending down to match likely resource levels suggests that savings of around £11.8m are required for 2013/14 and that the cumulative on-going savings requirement to 2014/15 will amount to some £24.2m.

The report also includes details of the new Business Rates Retention regime which is currently the subject of consultation and which will commence on 1 April 2013. The outcomes and changes to the finance regime arising from the Local Government Resource Review, particularly the rates retention element, will go a long way to determining the resources available to the Council from 2013/14 onwards.

The Executive is recommended to:

·         Note the position for 2012/13 reported in the first quarter Corporate Performance and Resources Report (elsewhere on the agenda);

·         Note the outlook for local government finance and, in particular, the overview of the set up and operation of the new business rates retention scheme;

·         Note, and comment upon as appropriate, the financial forecasts for 2013/14 to 2016/17, and the key issues to be addressed in formulating a response to the financial challenges facing the Council;

·         Approve the 2013/14 starting point set out in Appendix One and agree the adjustments and the resultant indicative spending plan as set out in Appendix Three;

·         Note the indicative cumulative savings requirement for 2013/14 of £11.827m and £24.217m for 2014/15 along with the sensitivity analysis included as Appendix Four;

·         Note the ‘post CSR’ forecasts to 2016/17 along with the sensitivity analysis included as Appendix Five;

·         Request that Executive Councillors and Corporate Directors develop spending plans and savings proposals to meet the indicative savings requirement for 2013/14 and to report on progress;

·         Take the steps necessary to agree a final balanced budget proposal for 2013/14 and an updated Medium Term Financial Plan to 2014/15 for presentation to the Budget Council meeting.

Officer contact: Steve Houston / Andy Moran, 0161 474 4000/ 4086, steve.houston@stockport.gov.uk / Andrew.moran@stockport.gov.uk

The Leader of the Council (Policy, Reform & Finance) submitted a report (copies of which had been circulated) inviting the Executive Meeting to consider an outline of the prospects for the Council’s finances for the medium term, taking the 2012/13 revenue budget as the starting point and including forecasts for 2013/14 to 2016/17. The report would inform the Executive’s deliberations on the priorities and outcomes for the updated Council Plan; the preparation of medium term business plans for Council services; the development of a balanced and sustainable budget for 2013/14; an updated Medium Term Financial Plan and a long term forecast moving into the next Comprehensive Spending Review period up to 2016/17.

RESOLVED – That

·         the financial position for 2012/13 as detailed in the Corporate Performance and Resources Report - 2012/13 First Quarter be noted;

·         the outlook for local government finance, and in particular the overview of the set up and operation of the new business rates retention scheme as detailed in the report be noted;

·         the financial forecasts for 2013/14 to 2016/17, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;

·         the 2013/14 starting point set out in Appendix One and the adjustments and the resultant indicative spending plans as set out in Appendix 3 be approved;

·         the indicative cumulative savings requirements for 2013/14 of £11.827m and £24.217m for 2014/15 along with the sensitivity analysis included at Appendix 4 be noted.