Agenda item

Report E/18/18 presents an update to the Medium Term Financial Strategy (MTFS) covering both the General Fund and Housing Revenue Account (HRA) prior to consideration by Council later this month.

Councillor Lunn, Lead Executive Member for Finance and Resources presented the report which provided an update to the Medium Term Financial Strategy (MTFS) covering both the General Fund and Housing Revenue Account (HRA), prior to consideration by Council later this month.

The Lead Executive Member for Finance and Resources explained that the direction of the strategy remained unchanged from last year with ongoing reductions to the General Fund and a reduction of 1% per year to council rents. It was noted that 2019/20 would be the final year of the Government’s current four year plan to reduce social housing rents.

The Executive was informed that the business rates system was due to reset from 2020/21 which meant greater uncertainty for the revenue budget. The Lead Executive Member for Finance and Resources explained that the New Homes Bonus (NHB) was secured to 2019/20 and that the Government was considering potential alternatives. It was noted that to mitigate this potential loss, the MTFS had phased the NHB out of the revenue budget which meant reducing base income by around £700k to £800k each year.

The Executive was informed that over the coming three years, the general fund savings requirement was forecast to increase to £2.5m per annum and the Lead Executive Member for Finance and Resources emphasised the importance of delivering the necessary savings.

The Lead Executive Member for Finance and Resources highlighted the potential for Selby to be part of a 75% business rates pilot. It was explained that further work was needed to assess the implications and due to the tight timescales it was proposed that subject to a favourable outcome for Selby, delegated authority be given to the Chief Finance Officer in conjunction with the Lead Executive Member for Finance and Resources to submit a pool application.

RESOLVED:

i)             To submit the Medium Term Financial Strategy to Council for approval;

ii)            To give delegated authority be given to the Chief Finance Officer, in consultation with the Lead Member for Finance and Resources, for the submission of an application for a 75% Business Rates PiIot, as part of a wider North Yorkshire pool, should this present a favourable outcome for Selby District Council.

REASON FOR DECISION:

To set the framework for the 2019/20 budget and Medium Term Financial Plan to 2021/22.