Issue - meetings

To consider the latest Medium Term Financial Plan (2020/21 to 2024/25) and Budget Forecast for 2020/21.

RESOLVED that:

(i)            The Medium Term Financial Plan, set out in the report presented, be adopted as the framework for the budget elements of service and financial planning for 2020/21 onwards.

(ii)          The Draft Reserves Policy be noted for review and development as part of the service and financial planning process with the final version presented for approval with the November 2019 budget report.

(iii)         The Draft Fees & Charges Policy be noted for review and development as part of the service and financial planning process with the final version presented for approval with the November 2019 budget report.

Councillor T. Schofield, Deputy Leader and Executive Member for Finance, introduced the Medium Term Financial Plan Update as set out. It was explained that the purpose of this update was to set out the background and context for the budget elements of service and financial planning for 2020/21 onwards.

Councillor Schofield explained that local government continued to face a very challenging financial situation. It was noted that funding from central government was set to reduce further. As a result the Council needed to find new ways to make more efficient use of existing resources while at the same time seeking out new and sustainable income streams.

In view of these financial challenges, the Deputy Leader and Executive Member for Finance highlighted some changes to the service and financial planning cycle. The Executive was informed that the information set out in the report of the Head of Finance and Assets presented key budget and financial information at a much earlier stage of this cycle.

In response to questions, it was explained that the Medium Term Financial Plan set out key information that would be used for budget setting for 2020/21 onwards. It was also noted that the update report included new draft policies on fees and charges and on the use of reserves. It was highlighted that these updates would help set the direction of travel for these important areas moving forward.

The Overview and Scrutiny Committee had considered the report on 11 July 2019. The Deputy Leader and Executive Member for Finance thanked the Committee for its questions and comments. The input from the Committee on the Medium Term Financial Plan was welcomed by the Executive and it was noted that their observations had been fully captured in the minutes from the meeting.

Councillor Schofield concluded by stating that despite the financial challenges the Council would continue to be ambitious and would continue to deliver excellent services to residents across the borough.

RESOLVED that:

(i)            The Medium Term Financial Plan, set out in the report presented, be adopted as the framework for the budget elements of service and financial planning for 2020/21 onwards.

(ii)          The Draft Reserves Policy be noted for review and development as part of the service and financial planning process with the final version presented for approval with the November 2019 budget report.

(iii)         The Draft Fees & Charges Policy be noted for review and development as part of the service and financial planning process with the final version presented for approval with the November 2019 budget report.

Reason for decision: The Council is required to set a budget by 11 March each year. The report presented, and the associated documents, supports this obligation.

Alternative options: To amend or reject any or all of the MTFP information and request other factors be taken into account when preparing budgets for 2020/21.

To consider any Exempt information in relation to the Medium Term Financial Plan Update.

Members considered information which had been published via an addendum to the agenda, in relation to the Medium Term Financial Plan Update in the exempt part of the meeting.

RESOLVED that the exempt information, published via an addendum to the agenda, in relation to the Medium Term Financial Plan Update (Exempt) be noted.

The meeting closed at 10.05pm.

To consider the latest Medium Term Financial Plan (2020/21 to 2024/25) and Budget forecast for 2020/21.

Members considered the latest Medium Term Financial Plan update (2020/21 to 2024/25) and Budget forecast for 2020/21.

Councillor Tony Schofield, Portfolio Holder for Finance, introduced this item. He said that local government continues to face a very challenging financial situation. Government funding is set to reduce further so the Council is continually challenged to find new ways to make more efficient use of existing resources while at the same time seeking new sustainable income streams.

The timing for many of the proposed funding changes was unclear – there was speculation that there may be a delay, but the Council needed to plan for implementation next year until formal announcements were made.

Councillor Schofield said that the Committee had been given the opportunity to consider the key budget and financial information earlier in the financial planning cycle that in previous years. The report gave as much information as possible at this early stage in the service and financial planning process to put the financial challenges and plans into context.

Members of the Committee were asked to consider and comment on aspects such as:

  - the scale of commercial investment opportunities to be pursued

  - the types of investment that the commercial strategy should focus on

  - the extent of planned borrowing to purchase income generating assets

  - the extent to which investment should be through joint-ventures

  - the relative balance between commercial and people/place objectives when considering new investment opportunities.

Members commented on a number of areas of the MTFP update which included:

·       New Homes Bonus Reserve – this was noted to be quite high with no restrictions on use. It was asked if some of this money be given to provide future affordable housing rather than waiting for the draft housing strategy to be completed. The Portfolio Holder for Finance said that the Council had not previously assumed that the grant would continue therefore it was not being used to support the base budget. And the government had set out its intention to end the New Homes Bonus as part of the Fair Funding Review in 2020. Affordable housing was potentially one area being looked at for use of these funds but there was not a firm plan yet.

·       Strategic Property – Capital Programme – Members asked for more detail on the list of properties in the Capital Programme in Appendix 2 of the report. It was confirmed that this was mainly expenditure incurred on purchasing property.

·       Towns and Villages initiatives – Members asked what would be included in future budgets to fund Corporate Plan priorities for 2020-25 (p58 of the report) that recognise the need for the Council to support towns and villages in the borough to thrive. This included villages that are in the north of the borough such as Banstead village which provided significant income to the whole borough. This would be considered as part of the budget setting process along with other priorities.

·       Economic growth – Members asked if any allowance had been made for potential  ...  view the full minutes text for item 18