Agenda item

HC25         

Members were presented with a report that set out the Council’s Medium Term Financial Position over a rolling five year timeframe to 2023/24.  The Council, along with other local authorities, had faced unprecedented reductions in Government funding since the Comprehensive Spending Review in 2010.

The Leader presented the report and the s151 Officer and Head of Paid Service responded to questions that arose.  Recommendations relating to pensions and staff terms and conditions had caused some concern but the Leader explained the rationale for the recommendations. 

During discussion, some Members felt that Recommendation 9 within the presented report that related to Treasury Management and Borrowing Strategy should be amended to reflect that Council should set the upper borrowing limit.  The s151 Officer outlined the external advice that had been received that led to the presented recommendation, and in response to a question, the ramifications of ignoring that advice.  Other Members felt it was appropriate to accept the advice given.

It was then PROPOSED, SECONDED and on being put to the vote declared LOST, that the Hub Committee does not make a recommendation on the Upper Limit for External Borrowing (for all Council Services) and instead defers that decision to Council as part of the Medium Term Financial Strategy as per Exempt Appendix G.  As a result, the recommendation as set out in the presented report was approved as part of recommendation 3 below, which stated that the Hub Committee recommend to Council an Upper Limit of £50 million on External Borrowing. 

ItwasthenRESOLVED that the Hub Committee:

1.     note the forecast budget gap for 2019/20 of £0.45 million and the position for future years;

2.     notes the current options identified and timescales for closing the budget gap in 2019/20 and future years, to achieve long term financial sustainability; and

3.     RECOMMENDS to Council to approve recommendations 1 to 10 as set out in the presented report.