Issue - meetings

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

The purpose of the report is to present to Members the updated position on the Council’s 2017/18 to 2021/22 MTFP following the 2017/18 Provisional Local Government Finance Settlement (PLGFS). The starting position for the report is the MTFP reported to the Executive meeting on 4 October.

The report will inform the 2017/18 budget setting process including:

·         The discussions around the Council’s priorities and expected outcomes over the medium term; and

·         The development of a balanced and sustainable budget for 2017/18 and longer term forecasts to 2021/22.

The MTFP forecasts and assumptions have been updated to reflect new information becoming available since the 4 October and announcement made within the Provisional Local Government Finance Settlement. The consultation period for the Provisional Settlement finishes on the 13 January 2017 with the Final 2017/18 Local Government Finance Settlement expected to be announced in February 2017.

At this stage the Council’s 2017/18 forecast saving requirement is £5.312m rising to £52.595m in 2021/22. 

The Executive is recommended to:

·                Note the announcements made in the 2017/18 PLGFS and resulting impact of the Council’s 2017/18 to 2021/22 MTFP forecasts and assumptions;

·                Note the Council’s updated cumulative savings requirement following these changes; and

·                Approve the adjustments to the MTFP set out in the report and the Council’s revised cumulative savings requirement for 2017/18 to 2021/22.

Officer contact: Jonathan Davies, 0161 218 1025, jonathan.davies@stockport.gov.uk

The Leader of the Council (Policy, Finance & Devolution) submitted a report (copies of which had been circulated) updating the Executive on the Council’s financial forecasts for 2017/18-2021/22 following the 2017/18 Provisional Local Government Finance Settlement.

The Leader of the Council highlighted the following developments:-

·         The Council would receive 4-year budget settlements, as previously reported.

·         The increase allocation of Adult Social Care Grant, funded from savings to the New Homes Bonus, would have a net benefit to the Council of approximately £0.5m in 2017/18.

·         The Government had announced an increase in the amount of Adult Social Care Precept that could be levied, although this would reduce the amount that could be levied in future years. Nevertheless, the Executive would propose to increase Council Tax and the Adult Social Care Precept to the maximum of 4.9% as this would better enable to Council to meet the needs of vulnerable people in the borough.

·         It had been agreed that the Council would participate in the Greater Manchester Business Rates Retention Pilot following assurances that this would not adversely affect the Council’s finances.

·         The revised provisional savings requirements were now £5.312m for 2017/18 rising to £52.595m in 2021/22.

Executive councillors emphasised the significant financial challenges facing the Council, but endorsed the need to increase the Adult Social Care Precept up to the maximum permitted for 2017/18.

RESOLVED – That in relation to the Medium Term Financial Plan Update:-

·         the announcements made in the 2017/18 Provisional Local Government Finance Settlement and resulting impact of the Council’s 2017/18 to 2021/22 Medium Term Financial Plan forecasts and assumptions be noted;

·         the Council’s updated cumulative savings requirement following these changes be noted; and

·         the adjustments to the Medium Term Financial Plan set out in the report and the Council’s revised cumulative savings requirement for 2017/18 to 2021/22 be approved.