Agenda item

The Cabinet considered a report of the Director of Corporate Resources regarding the proposed Medium Term Financial Strategy for 2016/17 to 2019/20 (MTFS).  A copy of the report, marked ‘4’ and a supplementary report which was circulated separately are filed with these minutes.

Mr. Rushton CC thanked the Director and his staff and Mr. Rhodes for their work on the MTFS, noting that there were some difficult decisions to be made and the Council was continuing to transform the way it operated to enable key services to continue.  Mr. Rushton reported that he would be in London the following day with local MPs to make further submissions to the Government about Leicestershire’s low funding.

Mr. Rhodes CC said that the budget was the most challenging to date, and whilst the need to reduce the public sector deficit was recognised, the local government funding system was deeply flawed.

The following comments were made by other Cabinet members -

·         The fact that the Government had sought to mitigate the fall in grant for adult social care with an additional 2% precept meant that a greater proportion of the cost was being placed on Council Taxpayers.

·         Children’s social care was also suffering from reduced funding but could not be supported via the additional precept, which was solely for adult social care.

·         It was perverse that the Council had to consider cuts to early help and prevention where spending should rather be focused to reduce future costs.

·         The Council would continue to protect and support the most vulnerable; over a third of its revenue budget would be spent on adult social care. 

·         The proposed capital programme contained some good news in the form of a number of priority projects for highways and schools, and the Council would do its best to continue to provide good services within the financial constraints.  It was hoped that meaningful spending on key objectives, particularly preventative services, could continue.

·         The draft settlement could not be justified; the funding methodology was irrational.  

RESOLVED:

(a)      That the proposed Medium Term Financial Strategy including the 2016/17 revenue budget and capital programme be approved for consultation and referred for consideration to the Overview and Scrutiny Committees and the Scrutiny Commission;

(b)      That the Director of Corporate Resources, following consultation with the Cabinet Lead Member for Resources, be authorised to confirm the continuation of the Leicester and Leicestershire Business Rates Pool with the Leicestershire District Councils, Leicester City Council and the Leicester, Leicestershire and Rutland Combined Fire Authority, subject to agreement by all member authorities;

(c)      That the proposed County Council response to the provisional Local Government Finance Settlement, attached as Appendix A to the report, be approved;

(d)      That a further report be submitted to the Cabinet on 5 February 2016.

REASONS FOR DECISION:

To enable the County Council to meet its statutory requirements with respect to setting a budget and Council Tax precept for 2016/17 and to provide a basis for the planning of services over the next four years.

Modelling of the Business Rates Pool is being undertaken and a decision on whether to proceed will need to be taken before 14 January 2016.

To ensure that the Council’s views, in particular regarding the damaging effect of the settlement on the delivery of vital public services, are made known to the Government.