Issue - meetings

The Executive Director (Finance and Resources) gave a presentation on the current position in respect of the Medium Term Financial Plan 2013/2014 to 2015/2016, including reference to particular issues which would be likely to impact upon the Authority’s financial position.

It was reported that a major uncertainty at this stage was that details of the financial settlement from central government had not been received and that it seemed likely that details would not be available until 19th December 2012.

A number of issues which would affect the budget were highlighted by the Executive Director (Finance and Resources), including a projected staff pay award of 1%, a rise in utility bills of 10% and additional fuel costs. In addition it was felt likely that the general economic situation would result in an increase in pressure from the public on Council services.

It was explained that if there was a further freeze on Council Tax, whilst there was likely to be a government grant to partially cover this, the freeze would have an adverse impact on the Council Tax Base in future years.  

Other issues highlighted included the potential cost of Welfare Reform, the cost of the introduction of Universal Credit and the introduction of the Community Right to Challenge.

It was reported that officers were working to address a potential budget gap of around £1,000,000 and Heads of Service had been advised that no budget bids would be accepted without full funding plans. In addition a great deal of work was on-going in relation to the re-design of services to reduce costs whilst maintaining or improving service to the customer. Further reports would be submitted to Members in January 2013.

RESOLVED that the current situation be noted.