The Chief Executive presented the Medium Term Financial Strategy 2018-19 to 2021-22, which included a financial forecast for 2018-22, a detailed revenue budget for 2018-19 and a Capital Programme for 2017-18 to 2027-28.  He stated that the Strategy also includes the proposed Council Tax requirementfor the County Borough Council, for approval by Council, which would be presented together with the requirements of the Police & Crime Commissioner for South Wales and Community/Town Councils. 

He reported that the Corporate Plan was being presented to Council for approval alongside the MTFS 2018-22The two documents were aligned to each other, enabling explicit links to be made between the Council’s priorities and the resources directed to support them.  The Chief Executive gave a Corporate Financial Overview and while the net revenue budget is planned at £265.984m for 2018-19, overall expenditure far exceeds this.  Taking into account expenditure and services funded by funded by specific grants or fees and charges, the Council’s gross budget would be around £400m in 2018-19.  He stated that around £170m of this expenditure is spent on the Council’s staff, including teachers and school support staff.  Much of the cost of the services provided by external organisations was also wage related, which included waste collection operatives, domiciliary care workers and foster carers.  He also informed Cabinet that the Council faced reduced income to fund services, as well as legislative and demographic changes.  He stated that the Council has adopted a corporate plan that sets out the approaches that it will take to manage these pressures whilst continuing to ensure that, as far as possible, services can be provided that meet the needs of the community.     

The Chief Executive informed Cabinet that the Council had received an increase in funding of 0.1% from the Welsh Government which equated to £115k. This was offset by new responsibilities facing the Council as a result of the increase to the capital limit for residential care from £30,000 to £40,000 which would cost the Council £300k and homelessness prevention responsibilities costing £236k.  The true position was likely to be a reduction of 0.25% equating to £500k, compared to the previous year.  The Welsh Government had allocated £42m for social services pressures and £62m for school funding in its settlement to local government across Wales but this funding was not ring-fenced.    

The Chief Executive reported that the Council proposed to spend £108m on services delivered by the Education & Family Support Directorate. In 2017-18 the Council had introduced a 1% annual efficiency saving for schools for each year of the MTFS. However for 2018-19, the level of budget reductions required is not as great as had been predicted.  It had therefore, been possible to protect schools from the 1% saving for one year, however this would be almost unavoidable for 2019-20 onwards and it would be necessary for head teachers and governing bodies to prepare for future years.   

The Chief Executive also reported that nearly 70% of planned savings had been delivered, however some of the planned  ...  view the full minutes text for item 156