Issue - meetings

To consider a joint report of the Leader and Executive Councillor (Policy, Reform and Finance) and the Executive Councillor (Corporate, Customer & Community Services)

The report updates the forecasts for the Council’s finances for the period 2014/15 to 2016/17 taking as its starting point the position set out in the budget reports considered at the Council Meeting on 5 March 2013.

The report seeks to inform:

·           The deliberations around priorities and outcomes for next and future years’ Council Plans;

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

·           The development of a balanced and sustainable budget for 2014/15 and a longer term forecast moving beyond the current Comprehensive Spending Review period up to 2016/17.

Since the previous forecast, there have been further developments which impact on the council’s medium term financial plans including:

·           The Chancellor’s budget statement delivered on 20 March 2013 which announced additional spending reductions for 2014/15;

·           The publication of the Comprehensive Spending Review (CSR) on 26 June 2013;

·           The publication of a consultation paper on 25 July 2013 covering the 2014/15 and 2015/16 local government finance settlement; and

·           The approval of additional savings plans at the Executive Meeting of 16 July 2013.

In addition, a review has been undertaken of the key assumptions underpinning the forecasts presented in this report.

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 £21.705m are required for 2015/16 and that the cumulative on-going savings requirement to 2016/17 will amount to some £36.319m.

The Executive is recommended to:

·         Note the recent announcements in the March Budget and Comprehensive Spending Review and their impact on the local government sector, in particular, the planned reductions in local government expenditure and their impact on Settlement Funding Assessments;

·         Note, and comment upon as appropriate, the financial forecasts for 2014/15 to 2016/17, and the key issues to be addressed in formulating a response to the financial challenges facing the Council;

·         Approve the adjustments to the medium term financial plan at this stage as set out in the tables at paragraphs 3.3 and 4.2, including reducing the council tax increase assumption from 2.5% to 2% per annum for planning purposes;

·         Note the indicative cumulative savings requirement for 2015/16 of £21.705m and £36.319m for 2016/17 along with the sensitivity analyses included at Appendices One and Two;

·         Take the steps necessary to propose a final balanced budget for 2014/15 and an updated Medium Term Financial Plan to 2016/17 for presentation to the Budget Council meeting on 27 February 2014.

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

A joint report of the Leader of the Council (Policy, Reform & Finance) and the Executive Councillor (Corporate, Customer & Community Services) was submitted (copies of which had been circulated) providing the Executive Meeting with an update on the forecasts for the Council’s finances for the period 2014/15 to 2016/17.

Since the previous forecast was considered by the Executive, further developments which had impacted on the Council’s medium term financial plan included:

·           the Chancellor’s budget statement delivered on 20 March 2013 which announced additional spending reductions for 2014/15;

·           the publication of the Comprehensive Spending Review (CSR) on 26 June 2013;

·           the publication of a consultation paper on 25 July 2013 covering the 2014/15 and 2015/16 local government finance settlement; and

·           the approval of additional savings plans at the Executive Meeting of 16 July 2013.

The current best estimate of the reductions necessary to bring the Council’s forecast spending down to match likely resource levels suggested that savings of around £21.705m would be required for 2015/16 and that the cumulative on-going savings requirement to 2016/17 would amount to £36.319m.

RESOLVED - That

·         the recent announcements in the March Budget and Comprehensive Spending Review and their impact on the local government sector, in particular, the planned reductions in local government expenditure and their impact on Settlement Funding Assessments be noted;

·         the financial forecasts for 2014/15 to 2016/17, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;

·         the adjustments to the medium term financial plan proposed at this stage as set out in the tables at paragraphs 3.3 and 4.2, including reducing the council tax increase assumption from 2.5% to 2% per annum for planning purposes be approved;

·         the indicative cumulative savings requirement for 2015/16 of £21.705m and £36.319m for 2016/17 along with the sensitivity analyses included at Appendices One and Two be noted;

·         the necessary steps be taken to propose a final balanced budget for 2014/15 and an updated Medium Term Financial Plan to 2016/17 for presentation to the Budget Council meeting on 27 February 2014.