Issue - meetings

To consider a report by the Lead Member for Finance.

The Committee considered a report by the Lead Member for Finance on the Financial Strategy to develop the 2019/20 budget proposals.  It was explained that it was not possible to provide a comprehensive Medium Term Financial Plan yet as this work was being completed by the Budget Task and Finish Group to establish the baseline financial position, and more information was needed regarding the Government settlement.  However, it was noted that there was a positive direction anticipated in relation to negative Revenue Support Grant which would hopefully see an increase of £11m per year in the Council’s platform of funding.  Work also continued to develop the revenue, capital and borrowing position for Dorset Council and a draft budget would be considered by the Committee following the Budget Task and Finish Group on 14 September 2018, but this would continue to be subject to changes at this early stage.

Members discussed the original case for change which had identified the cost of transformation to be between £18m-27m and a number of questions were asked about how achievable or affordable this would be within the budget.  It was clarified that transformation costs were not yet part of the budget and that transformation plans for the new Council would be considered beyond convergence of the existing councils on 1 April 2018.  Transformation costs could be funded through a range of ways including use of reserves, borrowing or freeing up capital funding through the disposal of assets.  It was also highlighted that the scale and aspiration of transformation would need to be taken account of together with associated cost reductions and stranded costs that would still have a cost to the organisation after 1 April 2018.  A series of reports would be considered by the committee in due course on transformation.

Decisions

1. That the Financial Strategy, as a basis of balancing the 2019/20 budget, be approved.

2. That the proposals in the Finance Settlement Technical consultation for removal of negative Revenue Support Grant for 2019/20 be supported, and delegates authority to the Interim Section 151 Officer to respond to the consultation.

3. That the approach to member engagement on the budget, as set out in the Lead Member’s report, be approved.

Reason for Decisions

To enable the development of budget proposals that would balance the 2019/20 budget.