Lead Member – Councillor Malcolm Pate - Leader of the Council and Portfolio Holder for Strategy, Financial Strategy, Budget and Business Plan.

Report of the Head of Finance, Governance and Assurance (Section 151 Officer) (Appendix 3 to follow)

Contact: James Walton       Tel: 01743 255001

RESOLVED:

a.    That the use of Core Grants and other short and medium term resources to provide a balanced budget for 2017/18 and reduced funding gap in 2018/19 (as set out in Table 3) be agreed and recommended to Council

b.    That it be noted that to achieve a balanced budget without further Red RAG Rated Savings proposals being implemented will require the allocation of over £34m of short and medium term proposals over two financial years which will not reduce the size of the core funding gap in future years (still requiring £28.7m of base budget savings by 2019/20).

c.    That it be noted that further work is being progressed over the next 12 months to deliver a Sustainable Business Model for the Council to close the Core Funding Gap and deliver a financially self-sufficient Council in the medium to long term.

The Portfolio Holder for Corporate Support presented a report by the Head of Finance, Governance and Assurance on the Council’s Financial Strategy 2017/18 to 2019/20 and drew particular attention to Chart 1 [paragraph 5.7] of the report and Appendix 3.

Councillor Mosley stated that the use of one-off resources to fund the current budget shortfall was a temporary solution and difficulties would still have to be faced in years to come.  The Portfolio Holder for Adults, Councillor Lee Chapman remarked that the report was to be welcomed and he particularly drew attention to the large number of voluntary organisations that could work with the Council towards a sustainable future.  The Portfolio Holder for Planning, Housing, Regulatory Services and the Environment, Councillor Mal Price, added that this was a process to make the budget work in future years and to ensure a fair settlement for Shropshire in years to come.

Councillor Hannah Fraser [Councillor Roger Evans had left the meeting for another engagement] drew attention to paragraph 3.3 of the report and asked when the Council would accept the Government’s settlement offer.  The Chief Executive advised that Council had already agreed to accept the offer [Council 21 July 2016] and this provided certainty; those authorities who did not accept the offer would be more than likely to receive a decrease rather than an increase in the Government’s offer.  The Head of Finance, Governance and Assurance added that the offer made was generally the minimum that may be offered [so the amount actually received may be more].

Responding to Councillor Fraser, the Head of Finance, Governance and Assurance stated that the Veolia smoothing reserve had been replaced by £2M growth in the revenue budget.

Responding to a question from Councillor Mosley, the Chief Executive stressed that the transfer of local services would not change and the Council would continue to work with local Parish and Town Councils to take on services with its support.

RESOLVED:

a.    That the use of Core Grants and other short and medium term resources to provide a balanced budget for 2017/18 and reduced funding gap in 2018/19 (as set out in Table 3) be agreed and recommended to Council

b.    That it be noted that to achieve a balanced budget without further Red RAG Rated Savings proposals being implemented will require the allocation of over £34m of short and medium term proposals over two financial years which will not reduce the size of the core funding gap in future years (still requiring £28.7m of base budget savings by 2019/20).

c.    That it be noted that further work is being progressed over the next 12 months to deliver a Sustainable Business Model for the Council to close the Core Funding Gap and deliver a financially self-sufficient Council in the medium to long term.