Agenda item

Medium Term Financial Strategy 2017/18 - 2021/22

Minutes:

E.24/16          

Members were asked to consider a report that presented an annual review of the Council’s Medium Term Financial Strategy (MTFS).  It was based on a financial forecast over a rolling five year timeframe to 2021/22 which would help to ensure resources were aligned to the outcomes in Our Plan.  The forecast was intended to provide a framework within which decisions could be made regarding future service provision and council tax levels whilst building an approach that guaranteed the longer term viability for South Hams District Council.

 

The Executive Portfolio Holder for Support Services introduced the report and drew Members attention to the key elements.  He explained that the elements within the first recommendation would be discussed as part of the budget workshop to be held on 21 September 2016.

 

During discussion, the following points were raised:

 

·      Members discussed the growth in business rates and the s151 Officer advised that an analysis of rateable values would be carried out.  In response to a question regarding business rates appeals, the s151 Officer advised that there would be a revaluation of business rates in 2017 and it was expected that more appeals may be forthcoming as a result;

·      The s151 Officer advised that whilst the Council could demonstrate a broadly balanced budget until 2020/21, there was some uncertainty after that date as existing grants would be lost and rolled into one figure with business rates;

·      The Group Manager Business Development responded to questions regarding potential investment opportunities;

·      The Lead Executive Member for Business Development confirmed that the Local Plan was moving through housing numbers into the economy and there was some work ongoing about how they could be joined up;

·      Finally, the Deputy Leader advised that an update from the Economy Working Group would be presented to the next meeting of Overview and Scrutiny Panel meeting on 6 October 2016.

           

It was then:

 

RESOLVED:

 

1.    That the five year Medium Term Financial Strategy had been considered and indications given of the budget principles to be adopted, with particular reference to:

-       The level of council tax increase

-       The use of New Homes Bonus to support the revenue budget

-       Bringing forward income generation and budget savings and

-       Maintaining the current Council policy on the minimum level of unearmarked reserves being £1.5 million ( as set out in section 10 of the presented report)

 

That Council be RECOMMENDED:

 

2.    To accept the four year financial settlement being offered by the Government as set out in Section 2 of the presented report;

3.    That the approval of the Efficiency Statement (for the four year funding settlement) be delegated to the Head of Paid Service in consultation with the Leader, Executive Portfolio Holder for Support Services and the s151 Officer (COP Lead Finance); and

4.    To inform Town and Parish Councils on an annual grant reduction of 9.85% for the next three years in the Local Council Tax Support Grant, as set out in Appendix E of the presented report.

Supporting documents: