Agenda item

To consider the contents of the report and make any comments on the Council’s Medium Term Financial Strategy. 

The Committee received a report from the Chief Finance Officer and was asked to consider the content of the report and make any comments on the Council’s Medium Term Financial Strategy (MTFS).

The Chief Finance Officer explained that the report before them presented an update to the MTFS, covering both the General Fund and Housing Revenue Account (HRA) prior to consideration by Council on 18 September 2018. The report had been considered by the Executive on 6 September 2018.

The Executive Member for Finance and Resources, Councillor Cliff Lunn, was in attendance at the meeting.

The Committee noted that the key assumptions that underpinned the strategy had been updated. The MTFS highlighted the potential for the New Homes Bonus to be withdrawn after 2019-20, as well as the additional renewable energy business rates receipts expected in the final year before the system was reset.

Members were informed that the MTFS also identified risk and uncertainty around business rates retention, ongoing reductions to government funding for the General Fund and HRA rents as the key issues for the Council to consider. The MTFS also confirmed the Council’s strategic approach to reducing its base revenue budget and investing ‘one off’ or finite resources to stimulate economic growth, and achieve sustainable income through Council Tax and Business Rates growth.

The Committee also noted the Council’s reserves strategy which sought to set aside sums to cover known commitments and cover financial risk, as well as earmarking resources to support delivery of the Council’s Corporate Plan.

Officers explained that taking in to account prudent forecasts in Business Rates income, alongside the Council’s ongoing savings plans, a target net General Fund revenue budget of £17.8m and £11.6 for the HRA were proposed for the 2018-19 budget, which included a savings target of £1.5m, for the General Fund.

Committee Members acknowledged that based on the assumptions within the next MTFS, the savings requirement was estimated to rise to £2.9m over the next 3 years.

The Committee debated the report further and asked a number of questions of officers on a number of issues, including the impact of Brexit on the Council’s finances, council tax levels and the level of financial uncertainty facing the Council in the coming years.

Some Members expressed concern around spending on projects such as the Tour de Yorkshire and if there were measurable benefits from hosting such events.

The Executive Member for Finance and Resources explained that the benefits of events like the Tour de Yorkshire were hard to quantify, but they did have an overarching positive effect on the local and regional economies.

RESOLVED:

i.       To note the content of the report; and

ii.     To recommend to Council that the Medium Term Financial Strategy be approved.