Agenda item

The Cabinet considered a report of the Director of Corporate Resources regarding the proposed Medium Term Financial Strategy for 2017/18 to 2020/21 (MTFS).  A copy of the report, marked ‘4’, and a supplementary report which was circulated separately are filed with these minutes.

Members noted the comments received from Mr R. Sharp CC a copy of which is filed with these minutes.

The Director reported that since the supplementary report had been published the two Leicestershire Clinical Commissioning Groups had indicated that they intended to reduce their Better Care Fund contributions by £2 million. This was in addition to the £1 million funding shortfall which had already been identified.   

Mr. Rhodes CC said that whilst it remained challenging for the Council to meet its overall budget requirements, the proposed Capital Programme of £172 million over the next four years was encouraging.

Mr. Houseman CC said that the Council had performed exceptionally well to be able to produce a balanced budget for 2017/18 whilst continuing to fund key services such as adult social care despite being the lowest funded county Council in the Country.

RESOLVED:

(a)          That the proposed Medium Term Financial Strategy, including the 2017/18 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 Finance, following consultation with the Cabinet Lead Member for Resources, be authorised to -

(i)            agree a response to the draft Local Government Finance Settlement;

(ii)          decide on the appropriate course of action for the Leicester and Leicestershire Business Rates Pool in 2017/18 subject to agreement by all member authorities;

(c)          That a further report be submitted to the Cabinet on 10 February 2017.

(KEY DECISION)

REASONS FOR DECISION:

To enable the County Council to meet its statutory requirements with respect to setting a budget and Council Tax precept for 2017/18 and to provide a basis for the planning of services over the next four years.

To ensure that the County Council’s views on the Local Government Finance Settlement are made known to the Government.

Modelling of the Business Rates Pool with the Leicestershire district councils, Leicester City Council and the Leicester, Leicestershire and Rutland Combined Fire Authority is being undertaken and a decision on whether to proceed will need to be taken 28 days after the release of the draft Local Government Finance Settlement.