Issue - meetings

To consider a joint report of the Deputy Chief Executive and Borough Treasurer.

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution (Councillor Alex Ganotis) submitted a report (copies of which had been circulated) providing an update the Council’s 2018/19 to 2022/23 Medium Term Financial Plan (MTFP) forecasts and assumptions taking account of local and national changes including the Government’s 2017 Autumn Budget, Provisional Local Government Finance Settlement (PLGFS) and Final Local Government Finance Settlement (FLGFS) announcements since the completion of the Summer Review.

RESOLVED - That the Medium Term Financial Plan forecasts for the Council’s finances for the period 2018/19 to 2022/23 be noted.

The first part of this report outlines the update to the Council’s Medium Term Financial Plan forecasts and assumptions taking account of local and national changes including the Government’s 2017 Autumn Budget announcements since the Summer Review.

This report revisits the initial assumptions made following the Summer Review and considers the ongoing uncertainty around the reform of the Local Government Financing Regime, pay inflation negotiations and the complexity of the transformational change needed to move the Council to a self-sufficient funding model by 2019/20.

Cabinet is recommended to:

•        Note the details of the report including the announcements made in the Government’s 2017 Autumn Budget;

•        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;

•        Note the budget reduction requirement for 2018/19 of £1.221m and the indicative cumulative reduction requirement of £16.556m in 2019/20 rising to £47.101m in 2022/23; and

•        Take the final steps necessary to propose a balanced budget for 2018/19 to the Budget Council meeting on 22 February 2018.

Officer contact: Holly Rae / Jonathan Davies, 0161 474 3014 / 0161 218 1025, holly.rae@stockport.gov.uk / jonathan.davies@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 Council’s 2018/19 to 2022/23 Medium Term Financial Plan (MTFP) forecasts and assumptions taking account of local and national changes since the completion of the Summer Review, including the Government’s 2017 Autumn Budget announcements.

The Leader of the Council reported on the announcement made earlier in the day on the 2018/19 local government financial settlement. This announcement included the ability to raise Council Tax by a further 1% before triggering a local referendum and allowing a doubling of the Police precept up to £12. The government had also announced that councils could raise pay by up to 2%, but this would need to be funded through Council Tax increases. Given the lateness of the settlement publication, the Cabinet had not yet considered the implications of these announcements.

The Leader highlighted the challenge of the financial situation facing the Council.

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

·                the details of the report including the announcements made in the Government’s 2017 Autumn Budget 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;

·                the budget reduction requirement for 2018/19 of £1.221m and the indicative cumulative reduction requirement of £16.556m in 2019/20 rising to £47.101m in 2022/23 be noted; and

·                the final steps necessary to propose a balanced budget for 2018/19 to the Budget Council meeting on 22 February 2018 continue to be taken.