Issue - meetings

Report of the Deputy Chief Executive (Corporate Direction).

On the motion of Councillor Lynch, seconded by Councillor Bray, it was

RESOLVED – the Medium Term Financial Strategy be approved.

Report of the Deputy Chief Executive (Corporate Direction) attached.

Members were presented with the Medium Term Financial Strategy and also provided with a verbal update with information that had been announced by the Chancellor of the Exchequer in his Spending Review 2015/16 since production of the report. The conflict between the reduction of grants from central government and the pressure from the public to keep fees and charges low was highlighted.

The New Homes Bonus was discussed and it was explained that the government had announced that a portion would go to Local Enterprise Partnerships. It had originally been thought that this would be from the district councils’ portions only, but it had since been confirmed by the Secretary of State that it would be from both the district and county councils’ sums. It was stated that the government would be consulting on the amount to go to Local Enterprise Partnerships within the next couple of months.

With regard to council tax, Members were reminded that in order to increase the Borough Council’s income from this by more than 2%, a referendum must be held, but the cost of running a referendum would be higher than the income from the council tax increase. It was noted that the council tax support scheme would need to be reconsidered, including considering the contribution by residents who were eligible for support. Concern was expressed that all decisions both locally and nationally had a knock-on effect on preceptors.

The impact on district council jobs of moving to universal credits was discussed, and it was stated that it was not yet known whether this would be a centralised service or whether it would be administered by local authorities on behalf of the government.

Members were reminded that many efficiency savings had been identified and actioned by the Council over the past few years and a further senior management re-structure report would be presented to Council on 16 July which proposed further savings as a result of a vacancy. It was also reiterated that efficiency savings as a result of moving to the Hub and of sharing the building were also being realised. It was felt that the point may be reached that sharing with other authorities, particularly at management level, became the next logical step.

With regard to other major projects it was noted that the projected capital receipt for the bus station redevelopment was still £2.72m which would be used for the leisure centre.

RESOLVED – the Medium Term Financial Strategy be noted and RECOMMENDED to Council for approval.