Issue - meetings

This report updates the Council’s funding forecasts for the next four years.  It takes account of anticipated spending pressures, whether driven by changes in legislation, demographic trends or local policy intentions and provides updated estimates of the financial impact of these.  It also takes account of updated information on financing from central government and other sources, where this is available. The report therefore provides an updated summary of the significant financial challenges that the council will need to meet over the next four years, with a particular emphasis on the years 2015/16 and 2016/17. This report does not deal with proposed savings.  It merely sets out the financial context against which savings will need to be considered as part of the normal budget making process

that the latest forecasts for the Council’s financial position for 2015/16 to 2018/19 be noted.

The report from the Chief Finance Officer gave an update on the council’s funding forecasts for the next four years.  It took account of anticipated spending pressures, whether driven by changes in legislation, demographic trends or local policy intentions and provided updated estimates of the financial impact of these.  It also took account of updated information on financing from central government and other sources, where this was available.

The Lead Member Resources, Councillor Pavey, stated that the council was required by central government to identify an unprecedented level of budget cuts and he outlined some of the spending pressures that would also need to be managed as part of the budget process. Additionally, the  capital programme was becoming more restrained as alternative funding sources diminished. Councillor Pavey drew attention to the London Council’s report which expressed the view that the local government finance system was not sustainable in its current form and he described the impact on Brent as brutal.

Councillor Hirani commented on the change in legislation and the new requirement under the Care Act for local authorities to cap the fees payable by an individual for their care at £72,000 in their lifetime making costs more difficult to estimate. Social care support for children continued to be non-means tested.

The Chief Finance Officer summarised the budget strategy and financial position referring to demographic and policy changes and their likely impact, updated funding assumptions for 2015/16 to 2016/17, core funding projections and forecasts for 2017/18. The council would be required to save of the order of £100m over the next four years.

Members expressed grave concern over the projections, the seriousness of the challenges the council faced and referred to forums and Borough Plan meetings where residents could help shape the future of the borough.

RESOLVED:

that the latest forecasts for the council’s financial position for 2015/16 to 2018/19 be noted.