Issue - meetings

This report builds on the July Financial Strategy Refresh and updates Members on the latest Government announcements in relation to grant funding and asks Cabinet to note the current issues and approach to financial planning.

Resolved:           That Cabinet notes the current issues and approach to financial planning.

Reason:              To ensure the Council meets future financial challenges and produces a sound, prudent budget for 2014-15 and 2015-16

Consideration was given to a report which updated Members on the July Financial Strategy Refresh and the latest Government announcements in relation to grant funding. The level of budget reductions made since 2007/8 were reported together with reductions in funding anticipated up to 2019/20, highlighting the likelihood of adult care costs accounting for up to 50% of the Council’s net expenditure by 2019/20. 

It was confirmed that, in light of future pressures and budget reductions, the process of equal efficiency reductions to all services was not sustainable. With the budget reduction strategy for 2015/16 and beyond only being achieved by Council wide efficiency, priority based budgeting and transformation work was presently ongoing to identify proposals for each of these area. Further information in relation to funding reductions and the distribution of cuts which had the potential to significantly widen the gulf between authorities, reported at paragraphs 16 to 30 of the report.

Cabinet Members highlighted the scale of budget reductions required particularly with additional pressures on core services. It noted that it would not be possible to deliver the current level of services without transformation changes.

Officers confirmed the need for greater self reliance to mitigate funding reductions which were still uncertain as budget announcement would not be made until December 2013.  Reference was also made to the budget consultations being carried out in all wards between 13 to 28 November, to allow residents a say in how budgets were spent in the forthcoming year.

Resolved:           That Cabinet notes the current issues and approach to financial planning.

Reason:              To ensure the Council meets future financial challenges and produces a sound, prudent budget for 2014-15 and 2015-16