Issue - meetings

To consider a report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution.

Following the announcement of the 2018/19 Provisional Local Government Finance Settlement in December 2017, this report updates the Council’s 2018/19 to 2022/23 Medium Term Financial Plan forecasts and assumptions.

The report will inform the development of a balanced and sustainable budget for 2018/19 and a longer term forecast budget position up to 2022/23.

The report asks that the Cabinet consider a number of proposals in setting the Council’s 2018/19 budget.

The Cabinet is recommended to:

•        Note the details of the 2018/19 Provisional Local Government Finance Settlement and its impact on the MTFP forecasts and assumptions presented in this report;

•        Note, and comment upon as appropriate, the financial forecasts for 2018/19 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council;

•        Consider the use of the additional 1% Council Tax increase flexibility to propose a 2018/19 Council Tax increase of up to 5.99% (i.e. 2.99% increase to the General element and 2% increase to the Adult Social Care Precept element);

•        Consider the use of the additional 1% Council Tax increase flexibility to switch the increases in the General Council Tax and Adult Social Care Precept elements (i.e. 2.99% increase to the General element and 2% increase to the Adult Social Care Precept element);

•        Approve the indicative budget adjustments as presented in this report including the use of the Summer Review adjustments to increase the Council’s Corporate Contingency budgets;

•        Consider the allocation of Corporate Contingency budgets as part of the 2018/19 budget to support the underlying budget pressures within the Children and Family Services and Adult Social Care Portfolios;

•        Consider the use of the one-off available resources to support the Council’s 2018/19 budget, MTFP and Reserves Policy; and

•        Note the 2018/19 balanced budget position (subject to the Final Local Government Finance Settlement to be announced in February 2018) to be presented for approval to the Budget Council meeting on 22 February 2018.

Officer contact: Michael Cullen, 0161 474 4631, michael.cullen@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) updating the Cabinet on the forecasts for the Council’s finances for the period 2018/19 to 2022/23 following the provisional Local Government Finance Settlement announced in December 2017.

The Leader of the Council reported that the government had issued its finalised Local Government Financial Settlement that day, but that it did not appear to be significantly different from the provisional settlement. The government had also announced an additional £150m in funding for Adult Social Care although the details of how this would be distributed and any restrictions on its usage were not yet known.

The Leader also stated that despite the increased flexibility for local authorities to increase Council Tax by an additional 1% without triggering a referendum, the Cabinet would not be proposing to increase Council Tax (including the Adult Social Care precept) by more than 4.99% and that all the funding pressures facing the Council would be managed in the proposals to be considered by the Cabinet. He emphasised that the Cabinet did not wish to add undue additional burdens to the residents given rises proposed for other precepts. The flexibility of the new arrangements however would allow for the Council to collect additional resources that would be allocated to Adult Social Care but could be used to offset pressure in Children’s Services should this be necessary.

The Cabinet Member for Children & Family Services welcomed the additional funding for Adult Social Care, but expressed disappointment that no similar recognition had been given to significant pressures facing Children’s Services and in particular the increases in cost for residential care. The Cabinet Member outlined some of the pressures facing the Council and emphasised that work was being undertaken to try to address this.

The Leader of the Council stressed the importance of longer term financial planning and the need to reduce recurrent expenditure.

RESOLVED – That in relation to the Medium Term Financial Plan - Financial Landscapes and Forecast 2018/19 to 2022/23:-

·         the details of the 2018/19 Provisional Local Government Finance Settlement and its impact on the MTFP forecasts and assumptions presented in the report be noted;

·         the financial forecasts for 2018/19 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;

·         use not be made of the additional 1% Council Tax increase flexibility to propose a 2018/19 Council Tax increase of up to 5.99% but instead use be made of the additional 1% Council Tax increase flexibility to switch the increases in the General Council Tax and Adult Social Care Precept elements (i.e. 2.99% increase to the General element and 3% increase to the Adult Social Care Precept element);

·         the indicative budget adjustments as presented in this report including the use of the Summer Review adjustments to increase the Council’s Corporate Contingency budgets be approved;

·         the allocation of Corporate Contingency budgets as part of the 2018/19 budget to support the underlying budget pressures within the Children and Family Services and Adult Social Care Portfolios be noted;

·         the use of the one-off available resources to support the Council’s 2018/19 budget, MTFP and Reserves Policy be approved; and

·         the 2018/19 balanced budget position (subject to the Final Local Government Finance Settlement to be announced in February 2018) to be presented for approval to the Budget Council meeting on 22 February 2018 be noted.