Issue - meetings

Report of Head of Finance

Summary

The Medium Term Strategy (MTFS) is the Council’s key financial planning document. It is driven by our Corporate Plan and the four strategic priorities which lie at the heart of it. The 2010/11 local government finance settlement represented the final year of the “fixed” three year funding regime announced in 2008/09. Due to the current economic climate and national deficit it is clear that local authorities will continue to need to plan on the basis of a very restricted financial envelope from 2011/12 onwards. This report considers 3 scenarios for funding and calculates the potential shortfalls which will need to be addressed to deliver a balanced budget.

Recommendations

The Executive is recommended:

(1)               To note contents of report and MTFS scenarios detailed in Appendix 1.

(2)               To note the process and approximate timings of the Formula Grant Settlement and Concessionary Fares Transfer Impact

(3)               To agree that we should lobby Department of Communities and Local Government (DCLG) with our counterparties in Oxfordshire and approach Northamptonshire for a joint approach on the financial implications of the concessionary fares transfer. 

(4)               To agree that each MTFS scenario modelled will have a specific action plan developed to address the projected shortfall.

(5)               To advise of any other scenarios they would like modelled and / or matters they would like taken into consideration in developing the action plans.

(6)               To agree Timetable and process for the development of the next MTFS forecast and action plans.

Recommendations Approved

The Head of Finance submitted a report on the Medium Term Strategy (MTFS) - the Council’s key financial planning document. The 2010/11 local government finance settlement represented the final year of the “fixed” three year funding regime announced in 2008/09. Due to the current economic climate and national deficit it is clear that local authorities will continue to need to plan on the basis of a very restricted financial envelope from 2011/12 onwards. The report considered 3 scenarios for funding and calculated the potential shortfalls which will need to be addressed to deliver a balanced budget.

Resolved

(1)               That the contents of report and MTFS scenarios detailed in Appendix 1 of the report be noted.

(2)               That the process and approximate timings of the Formula Grant Settlement and Concessionary Fares Transfer Impact

(3)               That the council lobby Department of Communities and Local Government (DCLG) with our counterparties in Oxfordshire and approach Northamptonshire for a joint approach on the financial implications of the concessionary fares transfer. 

(4)               That it be agreed that each MTFS scenario modelled will have a specific action plan developed to address the projected shortfall.

(5)               That not further scenarios be modelled and / or matters taken into consideration in developing the action plans at this time.

(6)               That the timetable and process for the development of the next MTFS forecast and action plans be agreed.

Reasons

The MTFS is a key part of the Council’s Policy, Service Planning and Performance Management framework which aims to ensure that all revenue and capital resources are directed towards the Council’s strategic priorities. The Strategy describes the financial direction of the Council for planning purposes and outlines the financial pressures over a 4 year period.