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’, is filed with these minutes.

 

Members noted the comments received from Mr S. J. Galton CC, a copy of which is filed with these minutes. 

 

The Director reported that the final Local Government Finance Settlement had not yet been received.  If announced in time, any changes arising from this would be reported to the Council at its meeting on 22 February.

 

Mr. Rhodes CC thanked officers for responding to the financial challenges faced by the County Council which had achieved a balanced budget for 2017/18 despite being the lowest funded County Council in the country.  Other authorities that received more funding had not performed as well and were struggling to meet their statutory obligations.

 

Mr. Rhodes confirmed that the Council was continuing to pursue its Fair Funding campaign which had achieved growing support from other low funded authorities.  He also said that the Council would look at the possibility of it becoming a pilot for the full retention of business rates. 

 

Mr. Rhodes said it was appropriate for the Council to review its policy on subsidised transport to ensure the policy remained fit for purpose and continued to support the best use of resources.

 

Mr. Houseman CC, Mr. White CC and Mr. Ould CC agreed that the Council had managed to modify its services and reduce costs whilst protecting them as far as possible, continuing to support those most vulnerable.  This was as a result of good medium term financial planning and the hard work of officers to transform services and reduce costs over a number of years.

 

RESOLVED:

 

That the following be recommended to the County Council:-

 

(a)          That, subject to the items below, the MTFS which incorporates the recommended revenue budget for 2017/18 totalling £348m as set out in Appendices A, B and E of this report and including the growth and savings for that year as set out in Appendix C, be approved;

 

(b)          That the projected provisional revenue budgets for 2018/19, 2019/20 and 2020/21, set out in Appendix B to the report, be approved including the growth and savings for those years as set out in Appendix C, allowing the undertaking of preliminary work, including business case development, consultation and equality impact assessments, as may be necessary towards achieving the savings specified for those years including savings under development, set out in Appendix D;

 

(c)          That the early achievement of savings that are included in the MTFS, as may be necessary, along with associated investment costs, be approved subject to the Director of Finance agreeing to funding being available;

 

(d)          That the level of earmarked funds as set out in Appendix J be noted and the use of earmarked funds be approved;

 

(e)          That the amounts of the County Council's Council Tax for each band of dwelling and the precept payable by each billing authority for 2017/18 be as set out in Appendix K (including the adult social care precept of 2%);

 

(f)           That the Chief Executive be authorised to issue the necessary precepts to billing authorities in accordance with the budget requirement above and the tax base notified by the District Councils, and to take any other action which may be necessary to give effect to the precepts;

(g)          That the Director of Finance be authorised to approve changes to the Business Rates Pooling agreement, which might occur as a result of the creation of a Leicester and Leicestershire Combined Authority;

(h)         That the transfer of £2.85m from the Schools Block to the High Needs Block of Dedicated Schools Grant be approved;

(i)           That the 2017/18 to 2020/21 capital programme as set out in Appendix F be approved;

(j)            That the Director of Finance following consultation with the Lead Member for Corporate Resources be authorised to approve new capital schemes including revenue costs associated with their delivery;

(k)          That it be noted that new capital schemes, referred to in (j), are shown as future developments in the capital programme, to be funded from capital funding available;

(l)            That the financial indicators required under the Prudential Code included in Appendix L, Annex 2 be noted and that the following limits be approved:

 

	2017/18 £m	2018/19 £m	2019/20 £m	2020/21 £m
Operational boundary for external debt
i)   Borrowing	274.6	264.6	264.1	263.6
ii) Other long term liabilities	1.3	1.3	1.2	1.2
TOTAL	275.9	265.9	265.3	264.8
Authorised limit for external debt
i)    Borrowing	284.6	274.6	274.1	273.6
ii) Other long term liabilities	1.3	1.3	1.2	1.2
TOTAL	285.9	275.9	275.3	274.8

(m)         That the Director of Finance be authorised to effect movement within the authorised limit for external debt between borrowing and other long term liabilities;

 

(n)          That the following borrowing limits be approved for the period 2017/18 to 2020/21:         

(i)            Upper limit on fixed interest exposures 100%

(ii)          Upper limit on variable rate exposures 50%

(iii)         Maturity of borrowing:-

	Upper Limit	Lower Limit
	%	%
Under 12 months	30	0
12 months and within 24 months	30	0
24 months and within 5 years	50	0
5 years and within 10 years	70	0
10 years and above	100	25

(o)          That the Director of Finance be authorised to enter into such loans or undertake such arrangements as necessary to finance capital payments in 2017/18, subject to the prudential limits in Appendix L;

(p)          That the Treasury Management Strategy Statement and the Annual Investment Strategy for 2017/18, as set out in Appendix L, be approved including:

(i)            The Treasury Management Policy Statement, Appendix L, Annex 4;

(ii)          The Annual Statement of the Annual Minimum Revenue Provision as set out in Appendix L, Annex 1;

(q)          That the Risk Management Policy and Strategy (Appendix H) be approved subject to consideration by the Corporate Governance Committee on 17th February 2017 and that the Director of Finance be authorised to make any necessary amendments arising from its consideration by the Corporate Governance Committee;

 

(r)           That the Capital Strategy (Appendix G) and Earmarked Funds Policy (Appendix I) to the report be approved.

 

(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, to allow efficient financial administration during 2017/18 and to provide a basis for the planning of services over the next four years.