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 [s151 Officer]

Contact: James Walton      Tel: 01743 258915

RESOLVED:

              i.        That the revised projections for expenditure and resources be approved, as set out in Appendices 1 and 2, for the Financial Years 2017/18 and 2018/19

            ii.        That the revised savings proposals be approved as set out in Appendices 4 and 5.

           iii.        That the revised funding gap be noted and that the revised proposals be recommended to Council to deliver a balanced budget in 2017/18 and 2018/19 as set out in Appendix 3, including the release of earmarked reserves as set out in Appendix 6.

           iv.        That the draft outline Revenue Budget be approved as set out in Appendix 7, and the draft outline Capital Programme as set out in Appendix 8, which together will form the basis for Budget Consultation for 6 weeks from 30 November 2016 to 11 January 2017.

The Leader and Portfolio Holder for Strategy, Financial Strategy, Budget and Business Plan presented a report from the Head of Finance, Governance and Assurance [s151 Officer] that provided an update on the Council’s base budget position.  He drew attention to the future uncertainties before the Council including the Government’s funding formula and Business rates, New Homes bonus and the Better Care Fund but stressed that the Council had a four-year plan in place.

A Member stated that he considered the Financial Strategy to be imprudent and unsustainable particularly given the continued use of one off reserves to bridge funding gaps.  The Leader stated that the aim of the Strategy was to mitigate the situation through the prudent use of reserves and capital receipts and, in so doing, try to save as many services as possible.  Another Member commented that the Strategy did nothing other than delay difficult decisions until after the forthcoming elections in May 2017.  He accepted that there were no immediate cuts but believed the measures would only put off the inevitable through the use of devices that could not be repeated.

In noting the comments made, the Leader accepted that there was a great deal of uncertainty post 2020 and stressed that fair funding for elderly care in rural areas would especially have to be addressed by the Government.  Concluding, he stated that the primary aim of the Strategy was to maintain the best services possible for the people of Shropshire.

RESOLVED:

              i.        That the revised projections for expenditure and resources be approved, as set out in Appendices 1 and 2, for the Financial Years 2017/18 and 2018/19

            ii.        That the revised savings proposals be approved as set out in Appendices 4 and 5.

           iii.        That the revised funding gap be noted and that the revised proposals be recommended to Council to deliver a balanced budget in 2017/18 and 2018/19 as set out in Appendix 3, including the release of earmarked reserves as set out in Appendix 6.

           iv.        That the draft outline Revenue Budget be approved as set out in Appendix 7, and the draft outline Capital Programme as set out in Appendix 8, which together will form the basis for Budget Consultation for 6 weeks from 30 November 2016 to 11 January 2017.