Agenda Item No______10______
FINANCIAL STRATEGY 2013/14 to 2015/16
Summary:
This report presents the current financial forecast for the
period 2013/14 to 2015/16 and provides a summary of
the key issues facing the Council in relation to Local
Government Finance.
Options considered:
Conclusions:
The current financial forecast presents a funding gap for
the next three years of up to £1.7 million. Estimates
have been made on the level of future funding, although
there is still a great deal of uncertainty on the level of
grant reductions that Local Authorities will be facing.
Recommendations:
It is recommended that Members note:
1) the current financial forecast for the period
2013/14 to 2015/16;
2) the current capital programme and capital
funding forecasts;
3) the revised reserves statement as included at
Appendix C to the report.
Reasons for
Recommendations:
To update members with the current financial position of
the authority as further work on the detailed budget for
2013/14 is completed over the coming months.
Cabinet Member(s)
Ward(s) affected
All
Contact Officer, telephone number and email:
Karen Sly, 01263-516243, Karen.sly@north-norfolk.gov.uk
1.
Introduction
1.1
The paper attached as an Annex to this covering report sets out how both the
external financial changes and internal budget pressures will impact on the
overall financial position of the Council during the period of the Corporate
Plan.
1.2
There are significant changes to the financing of local government from the
centre as the Formula Grant arrangements are dismantled and replaced by a
predominantly more localised funding system. These issues are discussed in
detail and cover business rates, council tax and other developments.
1.3
The changes need to be understood against the background of reduced
public expenditure and the Government’s austerity programme and flow from
the Corporate Spending Review 2010 (CSR2010). The Chancellor’s Autumn
Budget Statement scheduled for 5 December 2012 should provide more
detail to inform the detailed work on the forward estimates for 2013/14 and
beyond.
1.4
In addition the Financial Strategy updates the Council’s financial projections.
It identifies the budgetary pressures on the Council during the period of the
Corporate Plan by examining inflation, service pressures, income streams,
reserves and the capital programme and seeks to identify strategies for
addressing these areas within the overall context of the revenue and capital
budgets.
1.5
As part of the annual budget process the Financial Strategy is the first of a
number of pieces of work which culminate in setting the annual budget for the
forward financial year in February 2013.
2
Financial Implications and Risks
2.1
The detail within the financial strategy has highlighted the significant changes
that Local Authorities are facing in terms of the funding they will be receiving
in the future. In particular the Strategy addresses the shift from a fully funded
national scheme for council tax relief to a localised scheme as well as the
proposals for business rate retention.
2.2
Additionally the Strategy highlights the necessity that efficiency savings and
other adjustments to the revenue budget base line identified in the various
workstreams being undertaken across the Council need to be fully delivered.
3
Sustainability
3.1
None as a direct consequence from this report.
4.
Equality and Diversity
4.1
This report does not raise any equality and diversity issues.
5.
Section 17 Crime and Disorder considerations
5.1
This report does not raise any Crime and Disorder considerations.