Agenda item

The Cabinet considered a report of the Director of Corporate Resources concerning the proposed Medium Term Financial Strategy for 2018/19 to 2021/22 (MTFS).  A copy of the report, marked ‘4’, and a supplementary report with the detailed proposals (circulated separately) are filed with these minutes.

Mr. Rhodes CC highlighted the pressures on the Adults and Communities and Children and Family Services Departments, which accounted for 81% of the Council’s total spend, and reminded members that an £18m shortfall in 2020/21 still needed to be addressed.

RESOLVED:

(a)      That the proposed Medium Term Financial Strategy, including the 2018/19 revenue budget and capital programme, be approved for consultation and referred to the Overview and Scrutiny Committees and the Scrutiny Commission for consideration;

(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 potential Leicester and Leicestershire 100% Business Rates Retention Pilot in 2018/19 and, subject to the acceptance of the submission made to the Government and the subsequent agreement by all member authorities, to implement this;

(iii)      Decide on the appropriate course of action for the Leicester and Leicestershire Business Rates Pool in 2018/19 and, subject to agreement by all member authorities, to implement this;

(c)      That a further report be submitted to the Cabinet on 9^th February 2018.

(KEY DECISION)

REASON FOR DECISION:

To enable the County Council to meet statutory requirements with respect to setting a budget and Council Tax precept for 2018/19 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.

A submission was made to the Department for Communities and Local Government (DCLG) for a 100% Business Rates Pilot in 2018/19 for the County Council, Leicester City Council, the Combined Fire Authority and all seven District Councils.  The decision of DCLG is expected alongside the Local Government Finance Settlement.

Modelling of a Business Rates Pool with the pooling partners is being undertaken and, if the application for the pilot is unsuccessful, a decision on whether to proceed with the Pool will need to be taken 28 days after the release of the draft Local Government Finance Settlement.