Issue - meetings

Joint report of the Chief Executive and the Head of Corporate Resources

Further to Minute No. 100 of the Cabinet Meeting held on 14 February 2019, the Council considered the joint report of the Chief Executive and Head of Corporate Resources which provided:

·       An assessment of the Council’s current financial position and approach to the 2019/20 Budget Plan and preparation for the new three-year budget period 2020/21 to 2022/23;

·       Progress that had been made during the last year within the Council’s Framework for Change programme;

·       An update on the Government’s announcement of resources that are available to the Council for 2019/20;

·       The Council’s current financial position and the assumptions built into the Medium Term Financial Plan;

·       The proposed Budget for 2019/20; and,

·       The proposed Capital Programme for 2019/20.

The report set out the financial strategy of the Council and the national and local financial context within which it is operating and indicated that the Council had a statutory requirement to remain financially sustainable and to balance its budget every year.

The Council’s Framework for Change Programme is a comprehensive and ambitious programme that seeks to support the delivery of the Council’s core purpose. As would be expected with a programme of this size and complexity that spans a number of financial years, the detailed proposals have been and will continue to be the subject of change as they are developed and ultimately implemented.  Within this context, a detailed assessment of the previously approved plans for 2019/20 has been undertaken to confirm their deliverability.  In addition, a limited number of additional savings proposals have been identified to balance the budget and ensure long-term financial sustainability.

The following appendices were attached to the report:

A.    Service Options 2019/20

B.    Individual School Budgets 2019/20

C.   Draft Council Budget Summary 2019/20

D.   Fees and Charges 2019/20

E.    Capital Programme 2019/20 – 2020/21

The Council also considered a copy of an update note prepared by the Head of Corporate Resources which provided details of the Police, Fire, Mayoral and Parish Precepts and the draft Council Tax resolution which had been circulated to Members of the Council and published in a supplementary agenda prior to the start of the meeting.

It was moved by Councillor Maher, seconded by Councillor Cummins:

That:

Budget 2019/20 and Medium Term Financial Plan from 2020/21 to 2022/23

(1)      the update of the Medium Term Financial Plan for the period 2019/20 to 2022/23 be noted;

(2)      approval be given to the Revenue Budget for 2019/20 and officers be authorised to undertake the necessary actions to implement the recommendations;

(3)      delegated authority for the use and allocation of the Budget Pressure Fund and any other reserves and balances currently within the 2019/20 budget be granted to the Chief Executive and the Head of Corporate Resources, in consultation with the Leader of the Council, in order to manage the overall financial outturn;

(4)      the Schools’ Forum decisions on the Dedicated Schools Grant and Individual School Budgets be noted;

(5)      the allocation of specific grants as detailed in the report (Section 10) be approved;

(6)      the  ...  view the full minutes text for item 88

Joint report of the Chief Executive and the Head of Corporate Resources

Decision Made: That

(1)      the pressure arising from the 2018/19 budget; the resulting impact on the 2019/20 budget and the requirement for additional proposals to be approved to support financial sustainability be noted;

(2)      the update of the Medium Term Financial Plan for the period 2019/20 to 2022/23 be noted;

(3)      the Council be recommended to approve the Budget Plan for 2019/20, including the Revenue Budget, the allocation of specific grants (section 10), the Fees and Charges (Appendix D) and the Capital Programme (Appendix E), and authorise officers to undertake the necessary actions to implement the recommendations; and

(4)      approval be given to the commencement of all appropriate activity as detailed including, for example consultation with employees and engagement with partners and contractual changes.

Reasons for Decision:

The recommendations in this report provide the basis on which the budget plan will be balanced for the financial year 2019/20 and will ensure that the Council’s statutory obligations are met. In addition, it begins the early planning for the next three-year financial strategy to give the Council sufficient time to identify specific proposal to deliver financial sustainability over that period.

Alternative Options Considered and Rejected:

The Council is legally required to set a balanced budget each year and the report had taken due consideration of all financial issues in its development. No additional options were available for inclusion.

Joint report of the Chief Executive and the Head of Corporate Resources

The Committee considered the joint report of the Chief Executive and the Head of Corporate Resources that provided information on the following issues in connection with the Council’s forthcoming consideration and approval, on 28 February 2019, of the Budget Plan for 2019/20 and the level of Council Tax for 2019/20:

·       An assessment of the Council’s current financial position and approach to the 2019/20 Budget Plan and preparation for the new three-year budget period 2020/21 to 2022/23;

·       Progress that has been made during the last year within the Council’s Framework for Change programme;

·       An update on the Government’s announcement of resources that are available to the Council for 2019/20;

·       The Council’s current financial position and the assumptions built into the Medium Term Financial Plan;

·       The proposed Budget for 2019/20; and

·       The proposed Capital Programme for 2019/20.

As such, the report set out the financial strategy of the Council and the national and local financial context within which it was operating; indicated that the Council had a statutory requirement to remain financially sustainable and to balance its budget every year; that the Council’s Framework for Change Programme was a comprehensive and ambitious programme that sought to support the delivery of the Council’s core purpose; that as would be expected with a programme of this size and complexity that spanned a number of financial years, the detailed proposals had been and would continue to be the subject of change as they were developed and ultimately implemented; that within this context, a detailed assessment of the previously approved plans for 2019/20 had been undertaken to confirm their deliverability; and that in addition, a limited number of additional savings proposals had been identified to balance the budget and ensure long-term financial sustainability.

Regarding the national context and financial environment the report indicated that 2019/20 would be the tenth year of the Government’s programme of austerity that the impact of continuing central government funding reductions on local government since 2010 was stark and had been widely reported; that   the National Audit Office (NAO) had published a report into the financial sustainability of local authorities which summarised the legacy of funding reductions and outlined the main challenges facing councils over the short and medium term; that the NAO found that local authorities experienced an average 49.1% real terms reduction in central government funding between 2010/11 and 2017/18; but that for Sefton, central government funding had reduced by 51% compared to 2010 thus demonstrating the inequality in funding reductions across the country and the disproportionate impact on this Council. 

With regard to local factors and the approach to sustainable financial planning the report indicated that Sefton, like many local authorities, had found the last ten years challenging in terms of the national funding conditions and in light of significant and growing pressures across a range of council services; that the Council had a proven track record of effectively managing its finances, meeting its financial objectives and delivering financial sustainability, however this was becoming increasingly difficult particularly bearing in  ...  view the full minutes text for item 50