Decision details

The Director of Finance and Digital Services provided Members with an update on the Medium Term Financial Plan for 2019/20 to 2022/23, based on current modelling assumptions in advance of formulating the detailed budget strategy proposals for 2020/21 during the autumn.

Members were reminded that that Public Sector continues to face a prolonged period of real term reductions in funding levels with challenging times expected for services across local government.  The Director added that this was coupled with increasing demand and costs associated with many services, in particular Social Care Services.

The Director advised Members that the latest indication from the UK Central Government was that the Comprehensive Spending Review, setting public sector expenditure / funding limits, was not likely to happen in line with the original timescale of autumn 2019 and that the implications of the delay on the 2020/21 local government settlement in Wales would be key to planning the Councils assumptions.

Members were referred to section 7 of the report, with the Director explaining   that subject to the level of funding from Welsh Government, a significant budget gap is likely to be faced in 2020/21 and for the following two years. He added that the proactive strategy adopted in recent years through early identification of savings and the targeting of key areas such as procurement and new ways of working could still deliver significant efficiency savings. He concluded by advising that once the Provisional Settlement was received, given the actions already being worked through, any budget gaps will in the first instance be addressed through efficiency actions and process changes thereby protecting, as far as possible, the much valued frontline services.

The Cabinet Member for Corporate Services commented on the continuous hard work of the Director and the finance section being undertaken to address any potential funding gaps and spoke of the pressures facing the Coucnil in respect of Social Services and the pensions and pay awards, commenting that funding protection was needed by Welsh Government. The Cabinet Member also referenced the considerable investment being taken forward by the Council during austere times, which again was a credit to the financial management by the Cabinet and finance colleagues.

The Leader spoke of the uncertainty with the comprehensive spending review and the implications of a roll over budget.  He also referenced the specific grant that had previously been made available in respect of pensions and teacher pay awards and the uncertainty as to whether this would be made available going forward.

It was RESOLVED:

1.    To note the current position modelled in respect of the ‘Medium Term Financial Plan 2019/20 to 2022/23’ and receive further updates in the autumn as part of the annual budget setting process;  and

2.    for wider communication and engagement with full Council and the Finance and Performance Scrutiny Committee.