Agenda item

The Deputy Leader of the County Council, County Councillors David Borrow, presented the "Money Matters" financial report, covering the current financial position, the financial outlook and medium term financial strategy (MTFS), as well as proposals to address the funding gap reported. It was noted that the forecast overspend for 2015/16 had reduced since the last report to £19.666m. It was also noted that the anticipated budget shortfall had increased to around £262m, largely due to the implementation of the National Living Wage.

Reference was made to the Government's Autumn Statement made the previous day, and it was confirmed that the implications of this for the County Council's finances would be worked through in due course.

Cabinet noted the views of the Budget Scrutiny Working Group, and accepted the alternative recommendation proposed by ESC.

In considering the budget proposals, it was noted that revisions had been made to the proposals relating to Bus Services and Arts Funding, and it was made clear that, in relation to Libraries, no specific decisions had yet been made about the location of services or the role of the mobile library service.

It was recognised that the decisions now facing the council were extremely difficult, but that they would be made on the basis of need in line with the Corporate Strategy. Workable alternative proposals were welcomed from other groups or external bodies.

Given the financial position, and the costs incurred in any delay to the implementation of the proposals, including consultation where appropriate, it was agreed that the decision should be designated as urgent in accordance with Standing Order 34(3)

Resolved: That

(i)  the forecast overspend of £19.666m on the revenue budget in 2015/16  and ongoing pressure of £37.161m be noted

(ii)  the revised funding gap of £262.0m covering the period 2016/17 to 2020/21 as set out in the revised financial outlook forecast for the Council be noted.

(iii)  the budget adjustments for 2016/17 and 2017/18, and following years' increases, included in the MTFS reflecting the phased financial impact of the national living wage be approved.

(iv)  the adjustment of previously approved savings targets to reflect the £52.8m of undeliverable savings identified within the MTFS and that the 2016/17 budget be prepared on that basis be approved.

(v)  the principle of reserves supporting the revenue budget in 2016/17 and 2017/18 be approved.

(vi)  the principle of replacing revenue support to the capital programme with capital borrowing be approved.

(vii)  the attached budget proposals set out in Appendices 'D' and 'E' be approved, officers be authorised to proceed with their implementation subject to consultation where appropriate, and that the 2016/17 budget be prepared based upon these revenue decisions be agreed, with the outcome of any consultations being reported to Full Council.

(viii)  a financial strategy that sets a spending target for service expenditure levels to move in line with the lower quartile of the most appropriate comparator group of local authorities for individual services be approved

(ix)  key stakeholders and partners be formally advised of the outcome of the budget decisions.

(x)  This decision be designated as urgent in accordance with Standing Order 34(3) as any delay in its implementation could adversely affect the efficient execution of the County Council's responsibilities