Issue - meetings

To consider a report of the Executive Councillor (Corporate, Customer & Community Services)

This report presents the forecasts for the Council’s finances for the period 2015/16 to 2018/19 taking as its starting point the position set out in the budget reports considered at the Executive Meeting on 15 July 2014.

The report will 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; and

·         The development of a balanced and sustainable budget for 2015/16 and a longer term forecast moving beyond the current Comprehensive Spending Review period up to 2018/19.

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

·         The Local Government Finance Settlement Technical Consultation published in July 2014;

·         Policy announcements relating to Business Rates covered in the Chancellor’s Autumn Statement published on 3 December 2014;

·         The Council Tax Base and Non-Domestic Rates forecasts included in a further report (elsewhere on the agenda);

·         A review of other key assumptions underpinning the forecast.

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 £17.681m are required for 2015/16 and that the cumulative on-going savings requirement to 2018/19 will amount to some £66.2m.

The Executive is recommended to:

·         Note the recent announcements in the Autumn Statement and their potential impact on the planned reductions in local government expenditure and Settlement Funding Assessments;

·         Note, and comment upon as appropriate, the financial forecasts for 2015/16 to 2018/19, 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 set out in the tables at paragraphs 3.2 and 4.2;

·         Note the indicative cumulative savings requirement for 2015/16 of £17.7m, £38.8m for 2016/17 rising to £66.2m by 2018/19 along with the sensitivity analysis included at Appendices One and Three;

·         Request that Executive Councillors and Corporate Directors continue to develop their spending plans and savings proposals to address the budget requirements for 2015/16 and to report on progress;

·         Take the steps necessary to propose a balanced budget for 2015/16 and an updated Medium Term Financial Plan for presentation to the Budget Council meeting on 26 February 2015.

Officer contact: Andy Moran, 0161 474 4086, andrew.moran@stockport.gov.uk

The Executive Councillor (Corporate, Customer & Community Services) submitted a report (copies of which had been circulated) updating the Executive on forecasts for the Council’s finances for the period 2015/16 to 2018/19 to inform the development of a balanced and sustainable budget for 2015/16.

RESOLVED – That

·         the recent announcements in the Autumn Statement and their potential impact on the planned reductions in local government expenditure and Settlement Funding Assessments be noted;

·         the financial forecasts for 2015/16 to 2018/19, 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 set out in the tables at paragraphs 3.2 and 4.2 be approved;

·         the indicative cumulative savings requirement for 2015/16 of £17.7m, £38.8m for 2016/17 rising to £66.2m by 2018/19 along with the sensitivity analysis included at Appendices One and Three be noted;

·         that Executive Councillors and Corporate Directors be requested to continue to develop their spending plans and savings proposals to address the budget requirements for 2015/16 and to report on progress;

·         the steps necessary be taken to propose a balanced budget for 2015/16 and an updated Medium Term Financial Plan for presentation to the Budget Council meeting on 26 February 2015.