Agenda item

To consider a report of the Leader of the Council (Policy, Finance & Devolution) and Executive Councillor (Reform and Governance)

The Medium Term Financial Plan Update provides two reports.  The first report outlines the outcomes of the summer review of the Council’s Medium Term Financial Plan (MTFP) and the revised 2017/18 to 2020/21 budget saving requirement as a result.  The report also sets out the Council’s draft efficiency plan which needs to be submitted to the Department for Communities and Local Government by 14 October 2016 as the Council’s acceptance of the Government’s offer of a four year settlement.  The report also includes the reserve policy following consideration at Scrutiny Committee.

The second report is the Executive response to the updated MTFP position and accompanying it are a series of working papers that explain the initiatives the Executive is bringing forward to shape or reform programmes and address wider challenges over the medium term and business cases for proposed changes to address the spending reduction requirement for 2017/18.

In relation to the first report, the Executive is recommended to:

·         Note the outcomes of the MTFP Summer Review and the revisions to assumptions and MTFP forecasts detailed in Appendix 1.

·         Note the revised MTFP saving requirements following revisions to assumptions and MTFP forecasts detailed in Appendix 1.

·         Approve the adjustments to the MTFP set out in the report and the revised saving requirements.

·         Comment on the draft Efficiency Plan included in Appendix 2 which will be submitted to DCLG on 14 October 2016 as the Council’s acceptance of the four year funding settlement.

·         Note the revisions to the Reserves Policy following review at the Council’s Scrutiny Committees.

·         Approve the adoption of the Reserve Policy and subsequent realignment of reserves detailed in Appendix 3 and 4.

In relation to the second report the Executive is recommended to:-

·         Agree for planning purposes a proposed recommendation to increase Council Tax by 3.99% in 2017/18.

·         Delegate the finalising and submission of the Council’s Efficiency plan to the Borough Treasurer in consultation with the Leader and the Executive Councillor (Reform and Governance).

·         Discuss and note the progress in developing programmes for radical reform described in the working papers and agree.

·         Discuss the Executive Proposals set out in draft business cases; ask that these be considered at relevant Scrutiny Committees; and agree to begin public and workforce consultation as set out in this report.

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

The Leader of the Council (Policy, Finance and Devolution) submitted two report (copies of which had been circulated), the first outlining the outcome of the summer review of the Council’s Medium Term Financial Plan (MTFP) and the revised 2017/18 to 2020/21 budget saving requirement as a result; setting out the Council’s draft efficiency plan to be submitted to the Department for Communities and Local Government by 14 October 2016 as the Council’s acceptance of the Government’s offer of a four year settlement, and the proposed Reserve Policy following consideration at scrutiny committees. The second report set out the Executive’s response to the updated MTFP position and a series of working papers explaining the initiatives the Executive was bringing forward to shape or reform programmes and address wider challenges over the medium term; and business cases for proposed changes to address the spending reduction requirement for 2017/18.

The Leader of the Council emphasised the significant financial challenge facing the Council, and the need to transform services to allow the Council to become financially self-sufficient. The completion of the MTFP Summer Review had resulted in the projected saving requirement being revised downward due to more favourable conditions.

The Leader highlighted the specific proposals to meet the savings requirements for this upcoming financial year and outline proposals for the following year were set out in the agenda, and these had been developed in line with the principals agreed at the last meeting and to avoid the need to discontinue services but instead redesign services to improve efficiency.

The Leader further emphasised the consultation that would be undertaken on these proposals, and encouraged the public and stakeholders to get involved.

The Leader of the Council clarified that while the report had been based on a working assumption of a Council Tax rise of 3.99% rise, this did not necessarily mean that this would be proposed to the Council Meeting in February.

In relation to the proposed Reserves Policy the Leader emphasised that in agreeing to the Policy the Executive would not be committing any individual level of reserves but rather to the framework for how to justify those levels. The Leader further stated that he believed the current level of Reserves would provide the Council with the resilience to address the financial challenges and transform services.

RESOLVED – (1) That in relation to the Medium Term Financial Plan (MTFP) Update:

·         the outcomes of the MTFP Summer Review and the revisions to assumptions and MTFP forecasts detailed in Appendix 1 of the report be noted;

·         the revised MTFP saving requirements following revisions to assumptions and MTFP forecasts detailed in Appendix 1 of the report be noted;

·         the adjustments to the MTFP set out in the report and the revised saving requirements be approved;

·         the revisions to the Reserves Policy following review at the Council’s scrutiny committees be noted;

·         the Reserve Policy and subsequent realignment of reserves detailed in Appendix 3 and 4 be adopted, subject to the inclusion under para 3.2 ‘Infrastructure Investment Reserve’ of the sentence ‘and for additional infrastructure, where necessary, to protect existing council assets,’ after the word ‘maintenance’.

(2) That in relation to the MTFP – Executive Response and Proposals:-

·         for planning purposes a proposed recommendation to increase Council Tax by 3.99% in 2017/18 be agreed;

·         the finalising and submission of the Council’s Efficiency plan be delegated to the Borough Treasurer in consultation with the Leader of the Council (Policy, Finance & Devolution) and the Executive Councillor (Reform & Governance);

·         progress in developing programmes for radical reform described in the working papers be noted and agreed;

·         the Executive Proposals set out in draft business cases be agreed for public and workforce consultation as detailed in the report, and that these be referred to the relevant scrutiny committees for consideration.