Issue - meetings

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

This report updates the forecasts for the Council’s finances for the period 2013/14 to 2016/17 taking as its starting point the position set out in the Landscape and Forecasts report considered by the Executive at its meeting on 20 August 2012.

The report 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.

Since the previous report of 20 August 2012, there have been further developments within the local government finance arena including:

·         The forthcoming Local Government Finance Settlement.

·         The Government’s Business Rates Retention Scheme (Business Rates Localisation); and

·         Localised Council Tax Support.

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 £15.463m are required for 2013/14 and that the cumulative on-going savings requirement to 2014/15 will amount to some £29.079m.

The Executive is recommended to:

·         Note the position for 2012/13 previously reported in the half-year Corporate Performance and Resources Report;

·         Note the outlook for local government finance and, in particular, the forecast for the forthcoming finance settlement and the additional risks arising from business rates retention and the localisation of council tax support;

·         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 indicative budget adjustments as set out at paragraph 5.3 and Appendix One;

·         Note the indicative cumulative savings requirement for 2013/14 of £15.463m and £29.079m for 2014/15 along with the sensitivity analysis included as Appendix Three;

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

·         Request that Executive Councillors and Corporate Directors continue to develop spending plans and savings proposals to meet the increased 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 on 5 March 2013.

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) updating the Executive Meeting on the forecasts for the Council’s finances for the period 2013/14 to 2016/17, following a number of further developments within the local government finance arena since the previous landscape and finance report was submitted to the Executive in August 2012.

RESOLVED – That

·         the position for 2012/13 previously reported in the half-year Corporate Performance and Resources Report be noted;

·         the outlook for local government finance and, in particular, the forecast for the forthcoming finance settlement and the additional risks arising from business rates retention and the localisation of council tax support 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 indicative budget adjustments as set out at paragraph 5.3 of the report and Appendix One be approved;

·         the indicative cumulative savings requirement for 2013/14 of £15.463m and £29.079m for 2014/15 along with the sensitivity analysis included as Appendix Three be noted;

·         the ‘post CSR’ forecasts to 2016/17 along with the sensitivity analysis included at Appendix Four be noted;

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

·         approval be given to taking 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 on 5 March 2013.