Issue - meetings

[Report of the  Chief Operating Officer. To be introduced by the Cabinet Member for Resources and Culture.] The  report will update Cabinet on the issues arising from these statements and in particular their effect on the Council’s budget for 2016/17; the impact on future years’ budgets will be considered later in 2016  as the  Council begin to review the MTFS for future years. The report will  release the budget for 2016/17 to Overview and Scrutiny consideration and comment.

The Cabinet Member for Resources and Culture introduced the report which set out the issues arising from the recent Autumn Statement and Spending Review 2015 and provisional local government finance settlement with particular focus on their effect on the Council’s budget for 2016/17. Cabinet noted that the impact on future years’ budgets will be considered later in 2016 as the Council begin to review the MTFS for future years.

The Cabinet Member reported that the Local Government Finance settlement had, generally, not been kind to local authorities with a reduction in spending powers. Cabinet also noted that there would now be 4 year settlements to provide local authorities with more certainty to plan their budgets. Therefore the Council’s early choice to take forward a three year MTFS and Corporate Plan had been the correct course of action to take.

The report was proposing to keep Council Tax fixed but due to the demand pressures in Adult social care, the Council would take forward an Adult’s Services precept, meaning a 2%  increase in Council Tax. This would be for specific use on Adult Social Care and reducing the pressure on care packages.

In regards to the impact of this in the savings programme of the Council, the Cabinet Member for Resources and Culture reiterated that these were still financially challenging times for the Local Authority and it was important to ad hear to the existing financial savings timetable.

In response to Cllr Engert’s question on the use of the  expected £1.7m income coming forward from the precept and keeping services open for local people, it was evident from the budget monitoring report that even with day care centres currently still open, there was a continuing budget pressure in Adults services to tackle. The additional £1.7m income, from the 2% precept, on a financial yearly basis, would provide the Council with the flexibility to support reducing spend arising from demographic pressures or to support the co production initiatives coming forward.

The Leader reminded Cabinet of the London and national funding issue with Adults Social Care Services; even with all local authorities applying the 2% precept for funding social care this would only fund £1 in every £3 for Adults Social Care and would not provide a sustainable financial future for Adult Social Care.

The Leader further reiterated that when taking forward changes in social care the Council has an obligation to fur fill better care outcomes for all adults in the borough.

RESOLVED

1.    To note the outcomes arising from the Provisional Local Government Finance Settlement and the impact on the Council’s financial plans for setting the 2016/17 budget.

2.    To agree that the Council should advise the Department for Communities and Local Government of its intention to consult on the implementation of the 2% Adult Social Care precept.

Reasons for decision

In February 2015, and following extensive consultation, the Council approved its Corporate Plan and Medium Term Financial Strategy (MTFS) covering the period 2015 - 18. The Corporate Plan set out  ...  view the full minutes text for item 172