Decision details

Cabinet received a report setting out the financial position as at 30^th June 2016, the latest position in respect of the County Council's reserves and the County Council's updated financial outlook (Medium Term Financial Strategy) for period 2017/18 to 2020/21.

Cabinet considered the current predicted overspend and the ongoing risks to the council's financial position due to increasing demand and reduced resources. Particular reference was made to the reserves position, noting that by 31st March 2018, the County Council is expected to have reserves available of £21.772m, with the total current reserve essentially already committed or required to meet the budget shortfall in 16/17 and 17/18. Attention was also drawn to the fact that, whilst the reported funding gap had reduced, this was because of a new assumption built in to the figures that there would be a Council Tax increase of 3.99% each year.

Resolved: That

(i)  the forecast overspend of £11.267m on the 2016/17 revenue budget be noted;

(ii)  the position in respect of the Council's reserves and to agree the transfers outlined in the report be noted;

(iii)  authority be delegated to the Director of Financial Resources, in consultation with the Deputy Leader of the County Council, to authorise appropriate use of the Transitional Reserve within the parameters of the level of funding agreed by Cabinet and Full Council in setting the budget;

(iv)  the revised funding gap of £147.944m as set out in the Medium Term Financial Strategy be noted