To receive apologies for absence (to include reasons, where appropriate) from

Members/Officers. 

None.

To receive declarations of personal and prejudicial interest (if any) from Members/Officers in accordance with the provisions of the Members Code of Conduct adopted by Council from 1 September 2008 (including Whipping declarations)

None.

To receive for approval the minutes of a meeting of the Corporate Resources and

Improvement Overview and Scrutiny Committee dated 10 December 2015

RESOLVED:   That the minutes of the Corporate Resources & Improvement Overview and Scrutiny Committee of 10 December 2015 be approved as a true and accurate record subject to Councillor E Dodd’s apologies being recorded in Minute No. 174.     

The Scrutiny Officer presented a report which detailed the items to be considered at the next meeting of the Committee to be held on 5 February 2016 and sought confirmation of the information and invitees required for the subsequent meeting to be held on 22 March 2016. 

Conclusions:                  

(1)           Noted the topics to be considered at its meeting on 5 February 2016 and the invitees to attend to attend the meeting;

(2)         Determined the invitees to be invited to attend the meeting on 22 March 2016;

That the Chairperson of the Audit Committee be invited to attend future meetings of the Committee.       

Invitees:

Councillor M Gregory – Cabinet Member Resources

N Young – Corporate Director Resources and Section 151 Officer

R Hemingway – Head of Finance and ICT

The Scrutiny Officer introduced a report, the purpose of which was to present the draft Medium Term Financial Strategy (MTFS) 2016-17 to 2019-20, which includes a financial forecast for 2016-20 and a detailed draft revenue budget for 2016-17. 

The Corporate Director Resources informed the Committee that the draft MTFS had been considered by Cabinet on 12 January 2016 and had agreed that it be submitted for consultation.  The draft MTFS reflected the UK Government, Welsh Government and local government settlements based on the Council’s settlement being -2.5% which compared favourably to the provisional settlement of -4.5%.  The budget reduction requirement was now £36.9m over the life of the MTFS, compared to £49m previously forecast.  The Corporate Director Resources highlighted the position on grant transfers into the revenue settlement for 2016-17, however the full picture on specific grants was not yet clear, but the draft settlement did include information on a number of changes to the level of grants at an all Wales level which impact on the Council’s resources.  The Corporate Director Resources informed the Committee that the draft 2016-17 draft budget assumed a Council Tax increase of 3.9% based on an appropriate balance between the needs of the Council and its citizens.  The draft local government capital settlement for 2016-17 provided the Council with £6.293m capital funding for 2016-17, which is £5k more than 2015-16.  The Corporate Director Resources informed the Committee informed the Committee of the comparison of budget against projected outturn at 30 September 2015, which at the half year stage showed an overall under spend of £1.3m. 

The Corporate Director Resources highlighted the MTFS principles which would drive the budget and spending decisions over the four year period.  Principle 12 has been expanded to include provision for a MTFS Budget Reduction Contingency Reserve to enable the Council to manage delays or unforeseen obstacles to the delivery of significant MTFS budget reduction proposals.  She stated that it was prudent to set aside a specific reserve to provide a buffer or a safeguard against budget reductions with a Red risk status not being delivered to plan.  An earmarked reserve will be established at year end from any corporate under spends at a level to be determined annually.  This will provide additional capacity for discretionary use by the Chief Financial Officer, in consultation with CMB and Cabinet to manage inescapable problems.    

The Corporate Director Resources reported that the MTFS planning assumptions for 2017-20 are based on an annual reduction in Aggregate External Finance (AEF) of -3.2% and an assumed increase in council tax of 3.9% for 2017-18, 4.2% for 2018-19 and 4.5% for 2019-20 and the AEF figure of -1.2% based on the published Provisional Settlement.  The Corporate Director Resources highlighted the potential net budget reductions requirement based on the best scenario, most likely scenario and worst scenario for 2016-17, 2017-18, 2018-19 and 2019-20.  She stated that the draft settlement was better than forecast but there continued to be uncertainty around the economy and the prospect of interest rate  ...  view the full minutes text for item 185.

To consider any items of business in respect of which notice has been given in accordance with Part 4 (paragraph 4) of the Council Procedure Rules and which the person presiding at the meeting is of the opinion should by reason of special circumstances be transacted at the meeting as a matter of urgency.

There were no urgent items.