DECISION

1.    To note the changes to the draft budget position for 2017-8;

2.    To note the early indications of the financial position 2018-19 onwards, subject to the Autumn Statement and Local Government Finance Settlement;

3.    To note that the financial position is subject to volatility and that developments in Government policy and their implications on MTFS planning assumptions will be monitored closely and reported back at regular intervals;

4.    To agree to accept the Government’s 4 year funding Settlement Offer and delegate authority to the Director of Resources to submit a request for a Four Year guarantee for Tower Hamlets together with an Efficiency Plan;

5.    To agree the consultation approach set out in section 3.20 and appendix 5 to the report;

6.    To agree to commence formal budget consultation with residents, businesses and other key stakeholders and to receive feedback on the consultation at Cabinet in December.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Service Head, Finance and Procurement (N. Murton)

Councillor David Edgar, Cabinet Member for Resources, introduced the report. He highlighted the £58 million funding gap and associated savings targets. He also asked Cabinet to note the uncertainty on certain funding streams where the Council were looking to the Chancellor’s Autumn Statement for more clarity.

Cabinet reviewed the report and noted the planned consultation process, in particular in respect of the Overview and Scrutiny Committee and with service users on specific savings proposals. Finally, Members also noted the potential impact of the review of Business Rates with the Council now likely to become a net donor to this fund.

The Mayor noted the government proposal to provide a reduced, four-year funding settlement. This would provide the Council with certainty on that funding even if the amount received was reducing. He agreed the recommendations as set out.

RESOLVED

1.    To note the changes to the draft budget position for 2017-8;

2.    To note the early indications of the financial position 2018-19 onwards, subject to the Autumn Statement and Local Government Finance Settlement;

3.    To note that the financial position is subject to volatility and that developments in Government policy and their implications on MTFS planning assumptions will be monitored closely and reported back at regular intervals;

4.    To agree to accept the Government’s 4 year funding Settlement Offer and delegate authority to the Director of Resources to submit a request for a Four Year guarantee for Tower Hamlets together with an Efficiency Plan;

5.    To agree the consultation approach set out in section 3.20 and appendix 5 to the report;

6.    To agree to commence formal budget consultation with residents, businesses and other key stakeholders and to receive feedback on the consultation at Cabinet in December.