Agenda item

(Director of Resources) to consider the attached report.

Mr Maddock introduced the Financial Issues Paper/Efficiency Plan, noting that this had originally gone to the Finance and Performance Management Cabinet Committee in July of this year.

This report provided a framework for the Budget 2017/18 and updated Members on a number of financial issues that affect this Authority in the short to medium term.

The meeting noted that in broad terms the following represented the greatest areas of current financial uncertainty and risk to the Authority:

The report also had a short update on the effect of Brexit has had on this Council.  It was noted that the Prime Minister has now stated that she would like to give formal notice to leave the EU by March 2017.

The meeting noted that because of Brexit politicians and the Civil Service appear to have been paralysed and so we knew nothing more that we did in February about changes to New Homes Bonus, the 100% retention of business rates or the financial contribution we would be required to make to support right to buy for housing association tenants. Given this position the report stated that there was little point updating the Medium Term Financial Strategy (MTFS) for anything other than the 2015/16 outturn so the attached MTFS is very similar to the one approved in February.

It would be many years before the effects of Brexit could be fully evaluated, but what could be said at the moment is that for local government it had increased political uncertainty and reduced funding prospects.

Councillor Mohindra added we were waiting on Central Government for a lot more detail and officers would come back with any updates on the MTFS.

Mr Maddock continued that under central government funding we agreed to take up the 4 year settlement. Officers have today brought together the papers that the DCLG required. As for the business rate retention, this consultation closed on 26 September and officers were expecting to hear something soon about this. He had an email saying a draft list has been published listing types of businesses and their rateable value. We needed to print the bills by next March.

Councillor Whitehouse asked if the appeals process progressed. Mr Maddock said that the valuation office had stopped working on appeals to do other work and have now gone back to working on appeals again.

Councillor Patel asked how we could advise businesses on increases in their rates. Mr Maddock advised that they should consult the valuation office. Councillor Mohindra said that we could put this advice on the back of the rate demand. 

The consultation on the proposed changes to the New Homes Bonus closed on 10 March 2016, but Officers have not heard anything more about this. It would be necessary to adjust future versions of the MTFS once the exact nature of the changes were known.

The meeting also noted that:

·         Acquisition of the St Johns Site in Epping was expected at the end of this month;

·         A new head of Customer  Services was due to start in November and we are waiting to see what her plans are;

·         As part of the revised estimates for 2014/15 Members created an Invest to Save budget of £0.5m. This fund is intended to finance schemes which can produce reductions to the net CSB requirement in future years. This fund has proved popular with Members and officers and the number of ideas generated has meant it has been necessary to allocate additional funding;

·         Waste contract – Biffa were now confident that they were able to fulfil their obligations at the price they had tendered and have indicated that the additional resources  would stay in place until the transition was completed;

·         With the upcoming new Leisure Management contract they were looking to identify savings over the coming years;

·         An updating report on Local Plan expenditure went to the last Cabinet meeting.

Councillor Lion asked if we were measuring the savings from the Invest to Save initiative. He was told that initially it was anticipated to be around £100k in savings, but now we were looking at £120k in savings. A report on this would go to the Finance and Performance Cabinet Committee and it could also come to this committee’s December meeting for information.

Councillor Lion then asked if the printer migration project had some savings. He was told that they were expecting around £10k in the first year and then maybe around £30k in the year after.  Councillor Lion proposed that these savings should be scrutinised by this Committee. This was agreed.

RESOLVED:

1)    That the Financial Issues Paper/Efficiency plan was noted and commented on;

2)    That the report on the Invest to Save scheme going to the Finance and Performance Management Cabinet Committee should be brought to this Committee’s December meeting for information;

3)    That a report on the savings made by the printer migration project be brought to this committee when appropriate.