Decision details

The Group Director, Corporate & Frontline Services  provided Members with an update on the Medium Term Financial Plan for 2018/19 to 2021/22, based on current modelling assumptions in advance of formulating the detailed budget strategy proposals for 2019/20 during the autumn.

The Group Director explained that whilst investment through the use of one off funds has been very positive, the Council recognises that it must still address base budget shortfalls and make difficult decisions to balance its ongoing revenue budget into the medium term, adding that the report before Members provided an interim view on the scale of the challenge faced and the actions and arrangements being put in place to address any shortfalls across the planning period.  Members were referred to section 5 of the report which provided key assumptions in respect of income and expenditure. The Group Director continued by explaining to Members that the modelling assumptions within the report were all subject to change and would be reviewed as part of the detailed budget strategy work in the autumn. The ‘base case’ includes a reduction in Welsh Government funding of 1% per annum over the three year period. The variability of the potential level of Provisional Settlement from Welsh Government has a significant impact on the budget gap, at £3.6M per 1% as illustrated within figure 1 of the report.

Members were referred to Appendix 1 of the report which provided further detail in respect of the medium term financial planning arrangements.

The Leader advised that the plan would be brought forward to the next meeting of Council to ensure all Members were aware of the Council’s budget position, adding that the responsibility for setting the Council’s budget was a responsibility for all elected Members. The Leader continued by commenting on the pressures facing services in respect of increasing numbers of children looked after and adult service demands and also commented on the pressures in respect of inflation.  He added that funding of services couldn’t continually be made through back office savings.

The Deputy Leader spoke of the provision available for all Members to propose an alternative budget to assist in bridging the budget funding gap going forward, and spoke positively of the services, provision and investment available across the County Borough, in the current financial climate.

Members discussed the potential settlement in respect of Health and the consequential funding Health would receive with Members commenting that investment needs to be taken forward across Health and Social Care and not just primarily health.

Following discussions it was RESOLVED:

1.    To note the current position modelled in respect of the ‘Medium Term Financial Plan 2018/19 to 2021/22’ and receive further updates in the Autumn as part of the annual budget setting process; 

2.    For wider communication and engagement with full Council and the Finance and Performance Scrutiny Committee in respect of the plan.

N/A