Agenda item

The Cabinet considered a report of the Director of Corporate Resources concerning the proposed Medium Term Financial Strategy for 2019/20 to 2022/23 (MTFS).  A copy of the report, marked ‘4’, and a supplementary report with the detailed proposals (circulated separately) are filed with these minutes.

Members noted that following the publication of the Cabinet reports, the Local Government Finance Settlement for 2019/20 had been announced which included additional SEND funding for the Council of £1.5m for the next two years. It was expected that the Authority would also benefit from an extra £7m as a result of being part of the business rates pilot. However the additional funding did not change the core funding assumptions as set out in the report.

Mr. Rhodes CC welcomed the additional funding but highlighted the financial challenges ahead in order for the Council to meet its £74m savings target over the next four years. He added that there also remained concern as to the level of local government funding post April 2020 following the end of the current four year cycle. 

RESOLVED:

a)    That the proposed Medium Term Financial Strategy, including the 2019/20 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 Corporate Resources, 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 75% Business Rates Retention Pilot in 2019/20,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 2019/20 and subject to

agreement by all member authorities to implement this;

                       iv.    approve expenditure relating to preparatory and investment costs for the High Needs Block Development Plan, to be funded by underspends in the 2018/19 revenue budget.

c)    That a further report be submitted to the Cabinet on 8 February 2019.

(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 2019/20 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.

To enable the County Council (alongside the pooling partners) to respond to the Ministry of Housing, Communities and Local Government in respect of the 75% Business Rates Pilot (if successful) or Business Rates Pool within 28 days from the draft Local Government Finance Settlement.