December Finance Planning and Medium Term Strategy Report 2018 to 2023
Meeting: 17/12/2018 - Cabinet (Item 3)
Cabinet Member for Finance, Councillor Andrew WilsonStrategic Director Corporate Resources: Jackie Belton
Contact: Group Manager – Budgeting and Planning: Rachel Harrison, RHarrison Tel: 0207 926 2027
- Appendix 1- Consolidated Proposed Savings 2019-2023 Final, item 3 PDF 146 KB
- Appendix 2- 2019-20 London BRR pilot MOU - FINAL signed, item 3 PDF 1 MB
- Appendix 3- CIP 1819 to 2021, item 3 PDF 95 KB
- Appendix 4 - Financing the CIP 1819 to 2021, item 3 PDF 31 KB
- CABINET REPORT MTFS EQUALITIES ANALYSIS 051218 FINAL DRAFT 061218, item 3 PDF 310 KB
- Appendix 6- Council Pillars, item 3 PDF 54 KB
The Cabinet Member for Finance, Councillor Andy Wilson, introduced the report and advised that the Council’s budget had been cut by £238m since 2010, one of the highest cuts of any council in the country. Over the next four years, rising demand and further government cuts meant the Council had to find a further £43m. He also stated that the in determining the saving proposals, focus was on how to protect frontline services. The Council had launched a six-week public consultation on the plans, asking residents for their views.
The Director of Finance and Property, Christina Thompson, advised Cabinet that the purpose of the report was to provide an update on the Medium Term Financial Strategy (MTFS) and the savings proposals to ensure that the gaps in funding were addressed. Despite the scale of the challenge, the Council’s MTFS focused on protecting most front-line services from major cuts and identified the bulk of savings from back-office efficiencies, new income and reducing demand. She also advised that, the future of local government finance had fundamentally shifted away from direct government grant to self-sufficiency. Where previously the majority of council funding came directly from central Government it was now generated locally.
In summary the Leader of the Council, Councillor Lib Peck, said that:
· the reality of the cuts imposed by central Government meant that 60p on every pound was lost on what we can spend on services. That meant it was difficult to invest in preventative services and local government was the hardest hit by the cuts;
· the Administration had campaigned very hard in opposing the reduction in funding and was working with London councils in making central Government Ministers aware of the impact. The Leader also advised that she had met with key Treasury Ministers as part of her role with the Local Government Association. There was also support for the “breaking point” campaign which looked at highlighting the effects of cuts to local government, urging central Government to truly end austerity in local government; and,
· no matter how unfair and disproportionate the cuts were, it was Cabinet’s responsibility to manage the budget and continue to look at innovative ways to protect frontline services.
Medium Term Financial Strategy
1) To approve the Council’s Medium Term Financial Strategy as set out within this report.
2) To note the continued uncertainty with regard to elements of government funding, price and demand pressures and the need to ensure that budgets set each year are sustainable during the settlement period to 2022/23 and beyond.
3) To note the current funding gap of £43.232m for 2019/20 to 2022/23 and how we have reduced this gap through brought forward savings and new proposed savings, which are detailed within section 2.
4) To note the financial position of the Council’s budget in 2018/19 and the actions in place to balance it over the period.
London Business Rates Pilot Pool
Establishment of Governance Arrangement
5) Approve and accept the designation by the Secretary of State as an ... view the full minutes text for item 3