Agenda item

Report of the Director of Finance & Transformation / Section 151 Officer

The Committee gave consideration to the report (at pages 45 - 59) as delivered and summarised by the Director of Finance & Transformation / Section 151 Officer which should be read together with these minutes as a composite document.

The Committee noted the uncertainties faced by the Council and ability to forward-plan its finances beyond 2019/20 given the unprecedented financial pressures posed by central government and the constant ebb and flow of funding assumptions. It acknowledged that budget-setting was now, in practice, a year-round process of near constant test, challenge and refinement throughout which the authority was open to consider any and all available options so to keep its financial position viable.

The Committee requested that a communication apolitically-framed be released to inform residents about the Council’s financial settlement and budget implications.

The Committee also recognised the significance of the forward-looking investments made by of the Council, and the multiple existing and emerging projects and offerings which had, and were to contribute to, a more balanced economic outlook. This was said to also include the transformation of Customer Services, the Council’s Strategic Asset Review, the investment at Parklands Leisure Centre and Brocks Hill Visitor Centre and the wholly-owned housing company, Bushloe Developments.

In respect of the possible creation of parishes with the Borough, it was expressed by Members that although the collection of parish precepts was a potential and additional income stream, the threat to residents and to local democracy would be profound should, for whatever reason, the Council itself experience service failure.

In respect of New Homes Bonuses (NHB’s), it was reported that given a slow direction of growth within the Borough, the MTFS was predicated on worst-case scenario planning regarding NHB’s. However, it was hopeful that, once the Council’s emerging Local Plan and Strategic Growth Plan for Leicester/shire were adopted in the near future, subsequent development would come online and positively impact on budgets.

It was raised by Members and accepted by Officers that the cleaning contract would not, owing to operational reasons, deliver the savings anticipated and that questions surrounding its variation to enable the scaling back of contract requirements and, commensurately, the contract price remained unanswered. As such, an update was to be circulated to all Members regarding the contract’s capacity to be varied and the Internal Auditor was to carry out a review of the letting and monitoring of the same. 

The Committee further noted that whilst a 98.5% Council Tax collection rate target was laudable, and although based on existing collection performance, being overly optimistic could result in a detrimental effect and, therefore, should be raised as a discussion point at the next meeting of County Treasurers and kept under review.

By affirmation of the meeting, it was

UNANIMOUSLY RESOLVED THAT:

(i)       Subject to a further report to Full Council on 22 February 2018, the overall draft Medium Term Financial Strategy and budget for 2018/19 and 2019/20  be recommended in principle to Council;

(ii)     The levels of Reserves (as set out at paragraph 11 of the report) be approved; and

(iii)   The provisional outturn figure for 2017/18 be noted.