Agenda item

The Committee will receive a report on the Council’s Medium Term Financial Strategy – 2019/20 Budget Recommendations which was approved by the Council on the 28^th February, 2019.

The Committee received, for information and reference, a copy of the Council’s Medium Term Financial Strategy – 2019/20 Budget Recommendations which were approved by the Council on the 28^th February, 2019 and which gave details of the setting of the Council Tax.

The report also contained the Section 25 report of the Service Director Finance (Section 151 Officer) on the robustness of the estimates included in the budget and on the adequacy of the reserves that the budget would provide.  He reported that the robustness of the estimates and adequacy of the reserves which the budget provided were satisfactory, however, this was contingent upon the requirements contained within Paragraphs 3.17 – 3.20 of his report.  He also reported that the assumpt6ions made in preparing the budget would change and, therefore, further action may be needed to ensure that the plan not only delivered a balanced position in 2019/20 but would remain on track to deliver a balanced position over the full planning period.

In the ensuing discussion the following matters were raised:

·         Information was provided about the intention to submit a purple flag application for the Town Centre and what this would entail

·         It was noted that the Council had set aside a contingency to deal with the general uncertainty facing local government as a result of Brexit and other major funding changes that were looming.  It was felt that this was particularly important in the light of the major regeneration schemes/projects to which the Council was committed

·         Reference was made to the implications for the Council tax which showed an increased forecast over the five year period ending 2022.  Arising from the above discussion particular reference was made to

o    the move towards the retention of business rates and to the increasing expenditure on social care and children’s services

o   The volatile position with regard to income and the ‘unknowns’ around the economy and the position with regard to and the matters taken in relation to bad debt

o   The implications of welfare reforms and the likelihood that increasing numbers would be unable to pay their Council Tax.  It was noted that such issues had been identifies within the Section 25 report

·         There was a discussion of the Town Centre Strategy and particularly in relation to strategy in place to deal with empty properties

·         It was pleasing to note that compared to many local authorities, Barnsley was ‘well placed’ to face future financial uncertainties.  This was largely as a result of the Council taking early difficult decision of budget reductions.  It was noted, however, that the failure to deliver the ongoing savings identified could have a significant impact on the Council post 2022

RESOVLED that the report together with the Section 25 report of the Service Director Finance (Section 151 Officer) be noted.