The joint report of the Interim Chief Executive and Interim Section 151 Officer was presented on the Medium Term Financial Strategy 2019-20 to 2022-23, which included a financial forecast for 2019-23, a detailed revenue budget for 2019-20 and a Capital Programme for 2018-19 to 2028-29. 

The Interim Section 151 Officer reported that MTFS has been significantly guided by the Council’s priorities and while there had been year-on-year reductions in Aggregate External Finance (AEF) has necessitated significant budget reductions across service areas.  The Council still plays a very significant role in the local economy, responsible for annual gross expenditure of around £400M and is the largest employer in the County Borough.  The Interim Section 151 Officer informed Council that the Corporate Plan is being presented to Council for approval alongside the MTFS 2019-23.  The 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 Interim Section 151 Officer reported that the MTFS outlines the principles and detailed assumptions which drive the Council’s budget and spending decisions, the financial context in which the Council is operating and to mitigate any financial risks and pressures going forward, at the same time taking advantage of any opportunities that may arise. 

The Interim Section 151 Officer provided Cabinet with a Corporate Financial Overview and commented that the Council’s gross budget will be around £420m while the net revenue budget is planned for 2019-20 is £270.809m.    She set out the Strategic Financial Context and informed Council that the MTFS is set within the context of UK economic and public expenditure plans, Welsh Government priorities and legislative programme.  Following the announcement of the provisional local government settlement in October 2018, the Chancellor of the Exchequer announced that the Welsh Government will receive an extra £550m over the next three years, with the Welsh Government being able to decide how to spend this allocation.  The then First Minister confirmed a package of additional funding proposals for local government, which would be incorporated in the final budget.  The Council received its final settlement from the Welsh Government in December 2018, which for this Council resulted in a reduction of 0.1% in Aggregate External Finance or £258k.  This was offset by new responsibilities with the true impact for the Council estimated to be a reduction of £1.182m or -0.61% compared to 2018-19, the real position for this Council would be reduction of -1.07% or £2.07m. 

The Interim Section 151 Officer reported that 2019-20 final Revenue Budget includes a Council tax increase of 5.4% in the draft MTFS which was reported to Cabinet in November 2018, which was deemed necessary to fund the significant pressures facing the Council, particularly significant pay, price and pensions pressures. 

The Interim Section 151 Officer reported on a comparison of budget against projected outturn as 31 December 2018, with the overall projected position being an under spend of £5.312m, comprising a £592,000 net under spend on Directorates and a £6.642m net  ...  view the full minutes text for item 281