Issue - meetings

Update on the Medium Term Financial Strategy – Report to Cabinet

The Director of Corporate Resources presented the Update on the Medium Term Financial Strategy Report.

Members of the Committee noted the report. The update had been presented to Cabinet earlier in November and had also been discussed at the Cabinet Member’s Policy Development Advisory Group and other forums. Therefore the Committee was satisfied that there had been a number of opportunities to comment.

Two questions were raised, both referring to the New Homes Bonus (NHB).

Members questioned the projected cost of The Bridge at Broadbridge Heath against the amount allocated from the NHB. The Director of Corporate Resources would provide Members with a written answer to this question following the meeting.

Secondly, Members sought clarification as to whether the entire project at Broadbridge Heath leisure centre was being funded out of the NHB. It was explained that although it was not originally intended, a recommendation was made to Cabinet to increase the amount used from the NHB as it was considered financially prudent to do so, rather than to borrow additional money.

Members also questioned the purchase of the Forum investment, it was originally intended that this be partly funded by the sale of the Council’s assets, Members questioned what funds had been raised to date and projected in the next six months. It was agreed that a  written answer would also be provided following the meeting after consultation with the Head of Property Services.

It was noted that the Committee would meet on 23^rd January 2018 to discuss the Budget.

To receive the report of the Cabinet Member for Finance and Assets

            RECOMMENDED TO COUNCIL

(i)         That the Medium Term Financial Strategy 2018/19 to 2021/22 be approved.

(ii)        That New Homes Bonus be used to finance more infrastructure and investment property already in the capital programme as detailed in paragraph 3.29 of the report.

(iii)       That the projected balanced budgets and budget gap as detailed in report be noted.

            REASON

            To enable a balanced budget target to be established.

The Cabinet Member for Finance and Assets reported that a review of the Financial Strategy, as part of the budget setting process, enabled a balanced budget target to be established with a focus on an affordable level of Council Tax, delivery of the corporate priorities and policies of the Council and the continued enhancement of value for money and satisfaction with services for the residents of the District.

The budget for 2017/18 had been approved in February 2017 and a balanced budget projected for 2017/18 through to 2019/20, with a projected deficit in 2020/21.  Since then, further work had been undertaken on income generation, continuing the business transformation journey to the next stage and other efficiency measures to mitigate cost pressures that continued to rise.  The submitted report set out the proposed strategy for the period 2018/19 to 2021/22, to establish the context for the Council’s budget and medium term financial planning scenarios and assumptions.

The report referred to the strategic political, economic and regulatory outlook; budget assumptions based on the implementation of current income and efficiency actions; inflation cost pressures and interest rates; Council Tax; the localisation of Business Rates; New Homes Bonus; the capital programme; reserves and reserve strategy; Future Horsham initiatives; and potential actions to further mitigate the deficit in 2021/22 and beyond.

The Finance and Assets Policy Development Advisory Group had considered and supported the proposed Medium Term Financial Strategy.

            RECOMMENDED TO COUNCIL

(i)         That the Medium Term Financial Strategy 2018/19 to 2021/22 be approved.

(ii)        That New Homes Bonus be used to finance more infrastructure and investment property already in the capital programme as detailed in paragraph 3.29 of the report.

(iii)       That the projected balanced budgets and budget gap as detailed in report be noted.

            REASON

            To enable a balanced budget target to be established.