Issue - meetings

To consider a report of the Borough Treasurer

The report outlines the outcomes of the Summer Review of the Council’s Medium Term Financial Plan (MTFP). The Summer Review has requested the assumptions and forecasts which underpin the MTFP to ensure they remain appropriate and robust given local and national developments since the Council’s MTFP was approved in February 2018.

The Cabinet is recommended to:-

·         note the outcomes of the MTFP Summer Review;

·         note that the Council’s savings requirement has not been revised using the available resources identified following the completion of the MTFP Summer Review;

·         note that the available resources identified will be held to support the Council’s 2019/20 budget setting process and MTFP once further information is made available about the impact of the risks identified; and

·         note that updates to the MTFP will be reported to Cabinet as part of the 2019/20 budget setting process.

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) providing the Cabinet with the outcome of the Summer Review of the Council’s Medium Term Financial Plan (MTFP) 2019/20 to 2022/23.

The Leader of the Council highlighted the 2017/18 non-cash limit budget underspend and the continued demand pressures on services.  He further emphasised that there were a number of risks facing the Council’s financial position including some that were currently unquantifiable due to lack of information.

The Leader stated that there remained uncertainty about the Local Government Finance Settlement beyond 2019/20 as the announcement had been put back until after the 2019 Government Spending Review. The Council would therefore have to rely on a number of assumptions in its medium term planning

Specifically in relation to Council Tax, the Leader stated that it was expected that the Government would set the threshold for a referendum on any proposed rise at 2.99%, and with the 1% social care precept additional allowance the Council did not utilise for 2018/19, would allow for a rise of 3.99% in Stockport. He set out his view that the Government appears to continue to see Council Tax increases as its response to increasing funding pressures, and that this is not sustainable. The Leader stated that the Cabinet would work hard to keep any increases to a minimum, with the aim of not exceeding 2.99% as he believed that there needed to be respite from continued large increases in regressive taxation.

The Government’s consultation on Fair Funding for Local Authorities was referenced and the Leader welcomed the opportunity to rethink how local government was funded, and encouraged anyone interested to respond to the consultation.

Overall, it was anticipated that the savings requirement for 2019/20 would be £15,926m.

RESOLVED – That in relation to the Medium Term Financial Plan (MTFP) 2019/20 – 2022/23 Summer Review:-

·         the outcomes of the Review be noted;

·         the Council’s savings requirement not having been revised using the available resources identified following the completion of the MTFP Summer Review be noted;

·         that the available resources identified being held to support the Council’s 2019/20 budget setting process and MTFP once further information is made available about the impact of the risks identified be noted; and

·         that updates to the MTFP being reported to Cabinet as part of the 2019/20 budget setting process be noted.