Agenda item

The Deputy Leader of the Council introduced a report which set out the impact of the Autumn Statement and the Finance Settlement for 2016/17; provided an update of the forecast outturn position for 2015/16 and the Medium Term Financial Strategy for 2016/17 to 2020/21; and the position with regard to reserves.

Attention was drawn to the reduction of £303.3m in central government support over the period 2016/17 to 2019/20, noting that the settlement announced immediately before Christmas had presented the Council with an even greater reduction in financial resources than previously anticipated.

Damon Lawrenson, interim Director of Financial Resources, set out the detail contained in the report. The work to reduce the predicted overspend in the current financial year was welcomed, but it was emphasised that the financial position of the council was such that, whilst a legal balanced budget could be set for 2016/17, there were a number of significant risks in the councils financial position that meant that it was not currently possible to say with confidence that a legal balanced budget could be set for 2017/18. It was made clear that the position in 2017/18 was heavily dependent on the timely delivery of the budget proposals announced by Cabinet, and that any delay would require the greater use of reserves, threatening the position for later years.

It was MOVED and SECONDED that the recommendations set out in the report be noted, to which the following amendment was MOVED and SECONDED: 

"That the Committee requests the Cabinet not to proceed with the proposed cuts to the flood risk budget, subsidised bus routes budget, libraries, museums, the Knott End Ferry and transport to day centres."  Upon being put to the vote the amendment was lost and the original motion was then put to the vote.  The original motion was carried and it was:

Resolved: That the recommendations set out in the report to Cabinet be noted, and that no additional comments or alternative recommendations be made.