Issue - meetings

Cabinet

NOTED           the General Fund forecast at Section 4 and Appendix A of the attached report;

APPROVED   the assumptions underpinning the MTFS (Section 3)

INSTRUCTED           the Head of Finance to bring forward detailed draft estimates for 2017/18 based on the assumptions and issues contained in this report for consideration by Cabinet in the new year.

INSTRUCTED           the Executive Management Team (EMT) to identify and develop other options for meeting the MTFS additional income / savings requirement.

This decision was first published on Thursday 17 November and so the deadline for call-in is Thursday 24 November at 5pm. If not called-in this decision can be implemented on Friday 25 November.

Cabinet

NOTED           the General Fund forecast at Section 4 and Appendix A of the attached report;

APPROVED   the assumptions underpinning the MTFS (Section 3)

INSTRUCTED           the Head of Finance to bring forward detailed draft estimates for 2017/18 based on the assumptions and issues contained in this report for consideration by Cabinet in the new year.

INSTRUCTED           the Executive Management Team (EMT) to identify and develop other options for meeting the MTFS additional income / savings requirement.

Councillor Simon Edwards presented this agenda item, which updated the Council’s Medium Term Financial Strategy (MTFS) with the latest information available on underlying assumptions, pressures, savings, funding and risks. Councillor Edwards welcomed the Principal Accountant (General Fund & Projects) to her first Cabinet meeting and thanked her and the Head of Finance for their work on producing the MTFS.

Factors to consider were:

·         Impact of the EU referendum, including on recruitment and retention of European staff.

·         The reduction in the Revenue Support Grant.

·         The impact of the proposals to allow Councils 100% Business Rates Retention.

·         The increase and then decline of New Homes Bonus.

·         The increase in expected income from Ermine Street Housing Ltd.

·         The need to quantify the impact of risks.

·         The Council was on target to reduce its reserves to £3.05 million.

·         It was possible that the £500,000 allocated to the Planning Enforcement Reserve would not all be required.

In response to a question from Councillor John Williams, the Interim Chief Executive said that Her Majesty’s Revenue and Customs Service was not investigating South Cambridgeshire District Council about the Ermine Street Housing Company accounts and tax arrangements.  The Council had taken advice from Ernst and Young about how to respond to HMRC.

The Interim Chief Executive explained that External Audit had stated that the Council’s reserves should be enough to cover any shortfall in the accounts for three years, assuming no further savings or income generation was achieved. The Council were complying with this rule.

Cabinet

NOTED           the General Fund forecast at Section 4 and Appendix A of the attached report;

APPROVED   the assumptions underpinning the MTFS (Section 3)

INSTRUCTED           the Head of Finance to bring forward detailed draft estimates for 2017/18 based on the assumptions and issues contained in this report for consideration by Cabinet in the new year.

INSTRUCTED           the Executive Management Team (EMT) to identify and develop other options for meeting the MTFS additional income / savings requirement.