Council's Current Financial Position
To receive a presentation from the Head of Corporate Resources
Minutes:
The Panel received a presentation from Mark Chambers, Service Manager Finance, on the Council’s current financial position.
Mr. Chambers highlighted the following points:
· The Council is currently in Year 3 of the current financial plan 2017/18 to 2019/20.
· The Framework for Change 2017 provided the basis for the delivery of financial sustainability.
· The Council is currently operating with a £64 funding shortfall.
· The Council faces increased demands from Health and Social Care, both adult and children’s social care.
· Some one-off funding has been received but additional savings are required.
· The Council faces the in-year challenge of delivering an increased savings target and start to look towards 2020/21 and beyond.
· Sefton is not in a unique position but the financial environment is extremely challenging.
· Risk management and remedial action planning are central to the strategy.
· Referring to the financial environment 2020/21 to 2022/23 - Whilst the position is very uncertain the Council will have to start planning and delivering further savings.
· There is an estimated Budget shortfall of £15m p.a. or £45m by 2023.
· Gross Budget in 2019/20 is around £340m (net £220m). £45m equates to 13%.
· Key Risks faced are: funding of local government from 2020/21; service demand pressures; Government Policy; is austerity over?
· The Council aims to extend, develop and learn from current Framework for Change 2017.
· Develop a range of proposals and options for member advice and guidance based on strategic vision and direction of travel.
· Financial sustainability will need to be at the heart of the next 3-year budget.
RESOLVED:
That Mr. Chambers be thanked for his informative presentation.