Chichester District Council
Agenda item

Agenda item

Financial Strategy and Plan 2017-2018

The Cabinet is requested to consider the agenda report and its three appendices and to make the following recommendations to the Council namely that it:

(1)  Approves the key financial principles and actions of the five-year financial strategy set out in Appendix 1.

 

(2)  Notes the current five-year Financial Model in Appendix 2.

 

(3)  Approves the setting of a minimum level of general fund reserves, having considered the recommendations from the Corporate Governance and Audit Committee.

 

(4)  Approves the continuing participation by Chichester District Council in a West Sussex NDR pool for 2017-2018.

 

(5)  Notes the current resources position as set out in Appendix 3.

Decision:

RECOMMENDED TO THE COUNCIL

 

That the Council:

 

(1)  Approves the key financial principles and actions of the five-year financial strategy set out in appendix 1 to the agenda report.

 

(2)  Notes the current five-year Financial Model in appendix 2 to the agenda report.

 

(3)  Approves the setting of a minimum level of general fund reserves, having considered the recommendations from the Corporate Governance and Audit Committee.

 

(4)  Approves the continuing participation by Chichester District Council in a West Sussex NDR pool for 2017-2018.

 

(5)  Notes the current resources as set out in appendix 3 to the agenda report.

Minutes:

The Cabinet considered the agenda report and its three appendices in the agenda supplement appendix pack (copies attached to the official minutes).

 

The report was presented by Mrs Hardwick.

 

No specific officers were present for this item.

 

Mrs Hardwick explained that the report updated CDC’s financial strategy and plan for the year 2017-2018 and prepared the ground for the budget-setting in February 2017 and the council tax-setting in March 2017. She alluded to the prevailing economic climate in which local government had to function, the government’s recent autumn statement and CDC’s recently agreed four-year settlement. Whilst the settlement afforded a degree of certainty for aspects of CDC’s funding stream, much of its revenue requirement was unpredictable, which reflected uncertainties about the economy and the nature of retained non-domestic rates and to what extent central government would seek to reclaim that income. It had been confirmed that CDC would be entitled to raise council tax by 2% or £5 whichever was the greater without a referendum, as it had done for 2016-2017 and the current model assumed a similar increase for 2017-2018 with increases of 2% beyond that.  Appendix 2 (page 9 of the agenda supplement) showed the updated five-year model, reflecting the four-year settlement and the most up-to-date estimates for wider CDC activities including the commercial boards and other planned savings. The model incorporated estimates in the context of various uncertainties and risks set out in para 4.11, not least given the climate of political and economic uncertainty following the outcome of the EU referendum. She highlighted (a) income from fees and charges, (b) effects of inflation, (c) pay settlement pressure and (d) new homes bonus. The key financial principles behind CDC’s financial strategy were set out in appendix 1. The report had been considered by CDC’s Corporate Governance and Audit Committee on 24 November 2016; it had made various recommendations to the Cabinet, which were set out in section 9 of the agenda report.

 

Members commended the prudent approach to and the guiding principles in the financial strategy and plan in view of the financial uncertainty

 

Mrs Hardwick and Mr Ward replied to members’ questions with regard to (a) the services mentioned in the second bullet point (effects of inflation) in para 4.11 of the agenda report which had struggled to pass on the effects of inflation to customers (Careline and Development Management) and (b) when the figure in the ninth bullet point (amended waste regulations and increased recycling targets) in para 4.11, currently a best estimate, might be reviewed (it would kept under review in any event and could be addressed again for example in the 2018-2019 financial strategy and plan).

 

Decision

 

At the conclusion of the debate the Cabinet voted on a show of hands unanimously in favour of the five recommendations.

 

RECOMMENDED TO THE COUNCIL

 

That the Council:

 

(1)  Approves the key financial principles and actions of the five-year financial strategy set out in appendix 1 to the agenda report.

 

(2)  Notes the current five-year Financial Model in appendix 2 to the agenda report.

(3)  Approves the setting of a minimum level of general fund reserves, having considered the recommendations from the Corporate Governance and Audit Committee.

 

(4)  Approves the continuing participation by Chichester District Council in a West Sussex NDR pool for 2017-2018.

 

(5)  Notes the current resources as set out in appendix 3 to the agenda report.

Supporting documents:

 

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