Issue - meetings

The Finance and Staffing Portfolio Holder presented the Medium Term Financial Strategy and explained that the Committee were being asked to consider the financial strategies and budgets prior to the report going to Cabinet and then Council.

The Finance and Staffing Portfolio Holder explained that for 2017/18 there had been real surprises from the Government, as expected the Local Government Settlement was £0. In fact the Government was in effect taxing the Council. It was noted that the Council were spending less and would have to continue to find extra savings or more ways of increasing income in the years ahead.

Funding Greater Cambridge Partnership

The Finance and Staffing Portfolio Holder explained that the amount of funding to the Greater Cambridge Partnership had been reduced, as the number of new homes built was less than expected, which meant a decrease in New Homes Bonus.

Council Tax

It was proposed that Council Tax be increased by £5 for a Band D property. The Committee accepted this proposal. The Finance and Staffing Portfolio Holder warned that the underlying Council Tax showed how much savings or additional income still had to be found.

Reserves

The Executive were currently recommending that the minimum reserves should remain at £2.5 million. This figure had been increased years ago from £1.5 million due to the financial uncertainty nationally.

The Finance and Staffing Portfolio Holder explained that whilst the five year Medium Term Financial Strategy showed the Council reaching the limit of its reserves, history had shown that either additional savings or additional income would be found to push this date further back.

Ermine Street Housing Ltd

The Committee welcomed the funds that had been brought in through Ermine Street Housing Ltd, but expressed concern that the Council was relying on this. The Finance and Staffing Portfolio Holder explained that the funds brought in for 2017/18 were higher than expected, but the Executive recognised the risks such as fluctuating interest rates and assured the Committee that the Council was not complacent. Ermine Street Housing Ltd had its own risk register.

Business Rates

The Finance and Staffing Portfolio Holder explained that Business Rate appeals could be backdated to 2010 and so could adversely affect the Council’s finances. The Business Rates revaluation, which came into effect in April 2017 could also reduce receipts. The implications of the Government’s Fair Funding Review was not yet known but it was likely to mean extra funding to the County Council at the expense of the Districts.

Precautionary items

It was noted that none of the precautionary items for 2017/18 had yet been spent.

Cost of planning appeals

Whilst noting the costs of appeals, two members of the Committee stated it was money well spent as it defended local democracy and championed the views of local residents by forcing deeply unpopular proposed developments to appeal. The Finance and Staffing Portfolio Holder recognised the strength of feeling from councillors and local residents, but it was his duty to inform the Committee that planning appeals, on  ...  view the full minutes text for item 8

Report to follow.

As the Draft Medium Term Financial Strategy had not been available to the committee until the day before the meeting, the Finance and Staffing Portfolio Holder agreed to hold an informal briefing on this for the committee and its substitute members. This would take place in advance of the Cabinet meeting taking place on 16 November 2017. It was agreed that any issues raised at this meeting would be fed into the Cabinet meeting.