Issue details

Money Matters 2019/20 Position - Quarter 1

This report provides an update to Cabinet on the county council's 2019/20 revenue and capital financial position as at the end of June 2019 and an updated Medium Term Financial Strategy (MTFS) covering the period 2020/21 to 2022/23. 


There is currently an unprecedented amount of uncertainty relating to future funding across local government. Accordingly significant assumptions are required to underpin our forecasts. While these can be made with reasonable confidence in the current year, over the medium term, with limited information, we rely heavily on advice from national bodies and discussion with peers. As a result of this uncertainty the MTFS has not, at this stage, been extended to 2023/24 as we would normally do.


The funding gap for 2020/21 has reduced to £5.895m. This is largely due to current information suggesting the continuation of the equivalent value of revenue support grant into 2020/21, although this remains to be confirmed. However the future forecast gap has increased to £64.755m by 2022/23 due primarily to increased pay costs and service demand pressures. Work continues to build on last year's service challenge work and a separate report is included on the agenda to address some of the outcomes from that initial phase 2 work.


In summary:


(i)  The 2019/20 revenue forecast outturn is £801.771m, representing a projected underspend of £0.506m (0.06%) of the agreed budget.


(ii)  The MTFS has been updated and revised upwards by £17.429m and now indicates a financial deficit of £64.755m in 2022/23.


(iii)The Council is forecast to hold a General Reserve against unforeseen issues of £23.437m representing c3% of net budget, which is unchanged from the previously reported position. 


(iv)The Council is forecast to hold £150.250m of uncommitted transitional reserve which is sufficient to meet the forecast gap through to 2022/23. 


Decision type: Non-key

Decision status: Recommendations Approved

Divisions affected: (All Divisions);

Notice of proposed decision first published: 05/09/2019

Anticipated restriction: Part I  -

Decision due: 5 Sep 2019 by Cabinet

Lead member: Leader of the County Council

Lead director: Director of Finance

Contact: Neil Kissock Email: Tel: 01772 534286, Kate Lee Email: Tel: 01772 531733.


Agenda items