Agenda item

Cabinet

RECOMMENDED THAT COUNCIL

1.      Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium-term.

2.     Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B to the report.

Council AGREED to:

(a)   Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium-term.

(b)   Approve the refreshed Medium Term Financial Strategy at Appendix A and updated financial forecast at Appendix B.

Members considered a report on the medium-term financial strategy (MFTS) for the period to 2025/2026.

Councillor John Williams, Lead Cabinet Member for Finance, presented the report. He thanked officers for their tremendous efforts in producing the suite of financial reports in difficult circumstances because of the Covid-19 pandemic.

The MTFS refresh incorporated an updated financial forecast of the risks associated with Covid -19 and of the changes made, and intending to be made, by the Government to its support for local government, including changes to the Public Works Loan Board rules. He had included the 2021/22 financial year because of the effect Covid -19 had had this financial year and the material impact it could have on future year forecasting.

Councillor Williams referred to the Service Transformation Programme and said that due to savings and additional revenue from commercial investments, the sum which would be required in savings and additional income during the coming five years was £5 million, approximately the same as it was this time last year. The Council had a healthy General Reserve balance of around £16.5 million which would enable the Council to apply some of it as revenue contributions to capital outlay reducing its Minimum Revenue Provision. He continued to anticipate that the Government would carry out a major review of local government finance next year and he continued to plan for the worst-case scenario.

Councillor Bridget Smith, Leader of the Council, thanked Councillor Williams, and commended officers for their excellent effort in producing the budget reports, at a challenging time. The MFTS ensured the council would have sufficient income to enable it to make a difference to the residents of South Cambridgeshire.

Councillor Heather Williams acknowledged the hard work of officers in producing this report in what had been a difficult year.  She expressed concern that the financial forecast was not realistic and that further increased budget pressures should be anticipated than those set out in the report. For these reasons she would not support the recommendations. Financial updates on a daily basis should be provided.

Councillor Nick Wright queried the trajectory on which the Council Tax provision was calculated.

Councillor John Williams responded to the above comments. He said meeting demands for jobs and housing led to growth, and income from Council Tax was secondary. The treasury management strategy addressed the points which Councillor Heather Williams had raised in relation to the need for reserves should circumstances require them. He assured her that liquidity was sufficient.

Councillor Heather Williams said, as a point of personal explanation, she had referred to a three month figure stated in the report, and her point was that a weekly or daily figure should be provided.

Councillor John Williams said he was confident the forecasting was accurate; there were occasions when decisions to borrow rather than using reserves had been taken in specific circumstances, but those were financial decisions, not because of lack of liquidity. If Councillor Heather Williams had any concern she could raise this at any time with the Head of Finance.

Councillor John Williams proposed and the Leader seconded the recommendations as set out in the report. A vote was taken and votes were cast as follows:

In favour (26):

Councillors Henry Batchelor, John Batchelor, Anna Bradnam, Martin Cahn, Nigel Cathcart, Sarah Cheung Johnson, Gavin Clayton, Claire Daunton, Douglas de Lacey, Clare Delderfield, Peter Fane, Neil Gough, Bill Handley, Geoff Harvey, Tumi Hawkins, Pippa Heylings, Alex Malyon, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, Hazel Smith, Aidan van de Weyer, John Williams, Eileen Wilson.

Against (12):

Councillors Ruth Betson, Shrobona Bhattacharya, Tom Bygott, Grenville Chamberlain, Graham Cone, Sue Ellington, Mark Howell, Deborah Roberts, Bunty Waters, Heather Williams, Richard Williams, Nick Wright.

Abstain (0)

Council RESOLVED to:

(a)   Acknowledge the projected changes in service spending and the overall resources available to the Council over the medium-term.

(b)   Approve the refreshed Medium-Term Financial Strategy at Appendix A and updated financial forecast at Appendix B to the report.