Issue - meetings

Financial Planning

Meeting: 13/09/2016 - Cabinet (Item 4)

4 Financial Position 2017/18 - 2019/20 and option to fix RSG settlements PDF 661 KB

This report sets out the council's medium term financial position and the major strategic considerations arising from this and provides a brief update on the financing options for the council's investment strategy. The report also details the option provided in last year's local government settlement for councils to choose to 'fix' their future revenue support grant (RSG) settlements until 2019/20, after which the entire local government finance system is proposed to be re-set.

Decision:

RESOLVED:-

(i) Cabinet noted the overall financial position and the risks inherent in it.

(ii) Cabinet noted the overall arguments for and against accepting a fixed settlement of its RSG until 2019/20, and that on balance the advice is in favour of accepting it.

(iii) Cabinet delegated to the Chief Executive and Leader authority to decide whether or not to accept the fixed RSG settlement.

(iv) Cabinet delegated to the Chief Executive and Leader authority to submit an efficiency plan to DCLG as part of any decision to accept a fixed RSG settlement.

(v) Cabinet noted the position in particular in respect of business rates devolution and how this might progress, and that the chief finance officer will continue to respond to technical consultations as necessary.

(vi) Cabinet noted the progress in developing a financing programme for the investment strategy.

(vii) Cabinet agreed to delegate procurement and appointment of specialist financial advisers to assist in the financing of the investment strategy to the Chief Finance Officer, in consultation with the Deputy Leader.

Minutes:

Councillor Margaret McLennan, Deputy Leader, introduced the report. She informed Members that the report sets out the council's medium term financial position and the major strategic considerations arising from this.

She stated that this will provide context for proposals for the budgets for 2017/18 and 2018/19, which the council will need to set over the coming months.

Councillor McLennan, Deputy Leader, stated that significant savings have been delivered by the Council but that difficult choices about the levels of service provision also had to be confronted to meet the financial targets. She stated that the Council was now in a sound financial position despite the substantial cuts in central government funding awarded to Brent.

With the permission of the Chair, Councillor John Warren (Brondesbury Park) said that Full Council should be given the opportunity to consider the issue of fixing RSG up until 2019/20, not solely Cabinet. He stated that Full Council should also be given the opportunity to consider the associated efficiency plan prior to its submission to DCLG. He stated that he would raise the issue at Full Council on 19 September 2016.

In response to Councillor John Warren, Conrad Hall, Chief Finance Officer, stated that the majority of London Borough had considered the RSG settlements at Cabinet meetings and not Full Council meetings. It was clarified that that the decision on the Financial Position 2017/18- 2019/20 and option to fix RSG settlement is a function exercisable by the Cabinet.

It was reiterated that the council would need to make a decision on the four year settlement option by 14 October 2016 and write formally to DCLG on this.

Councillor McLennan, Deputy Leader, stated that the Council would prepare an efficiency plan to central government based on the council’s medium term financial plan.