Issue - meetings

To consider a report of the Borough Treasurer

This report outlines the outcomes of the Summer Review of the Council’s Medium Term Financial Plan (MTFP). The approved forecast savings requirement for 2019/20 to 2022/23 presented to the Budget Council meeting on 26 February 2019 remains robust. However, given the current complexity, volatility and uncertainty of the Local Government financial framework that underpins the MTFP, a Summer Review to retest the main assumptions, both resources and expenditure, is considered prudent. This report details the outcome of this review highlighting where adjustments can be made to these assumptions in order to present the most accurate forecast of the Council’s saving requirement over the medium term period.

The Cabinet approved the report and recommendations at the extraordinary meeting held on 3 September 2019.

The Scrutiny Committee is invited to note the report.

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

The Borough Treasurer submitted a report (copies of which had been circulated) outlining the outcomes of the Summer Review of the Council’s Medium Term Financial Plan (MTFP). The approved forecast savings requirement for 2019/20 to 2022/23 presented to the Budget Council meeting on 26 February 2019 remained robust, however, given the current complexity, volatility and uncertainty of the Local Government financial framework that underpinned the MTFP, a Summer Review had been carried out to test the main assumptions. The report highlighted where adjustments could be made to these assumptions in order to present the most accurate forecast of the Council’s saving requirement over the medium term period. The Cabinet had approved the report and recommendations at its extraordinary meeting held on 3 September 2019.

Councillors asked questions and made comments on this report and the accompanying Cabinet response during consideration of that item (see Minute 7 (ii) below).

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer

This report outlines the outcomes of the Summer Review of the Council’s Medium Term Financial Plan (MTFP). The approved forecast savings requirement for 2019/20 to 2022/23 presented to the Budget Council meeting on 26 February 2019 remains robust. However, given the current complexity, volatility and uncertainty of the Local Government financial framework that underpins the MTFP, a Summer Review to retest the main assumptions, both resources and expenditure, is considered prudent. This report details the outcome of this review highlighting where adjustments can be made to these assumptions in order to present the most accurate forecast of the Council’s saving requirement over the medium term period.

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 2020/21 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 2020/21 budget setting process.

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

The Cabinet Member for Resources, Commissioning & Governance submitted a report (copies of which had been circulated) inviting the Cabinet to consider the outcomes of the Summer Review of the Council’s Medium Term Financial Plan (MTFP) 2019/20 to 2022/23. The review has considered the key assumptions included in the MTFP approved at the Council Budget Meeting on 26 February 2019 and determined whether these assumptions are still appropriate.

The Cabinet Member reported on a very recent announcement from the Government of a one year spending review that may lead to unanticipated resources being available in the next financial year. Nevertheless the ongoing upward trend in demand for adult social care and children’s services would continue to put pressure on the Council’s finances. The Cabinet Member emphasised the continued unprecedented uncertainty, volatility and risk in local authority finances.

The Cabinet Member highlighted a number of assumptions underlying the report conclusions and some of the factors impacting on that assessment.

The Leader of the Council highlighted the difficulties created by the uncertainties in future financing on the ability of the Council’s medium term planning but that the Council would continue with its ambitious plans for reform to benefit the residents of Stockport.

RESOLVED – That in relation the Medium Term Financial Plan (MTFP) 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;

·           the intention be noted that available resources identified to be held to support the Council’s 2020/21 budget setting process and MTFP once further information was made available about the impact of the risks identified; and

·           the intention that updates to the MTFP be reported to Cabinet as part of the 2020/21 budget setting process be noted.