The Committee will receive a report that will provide information on the changes that might impact on the 2019/20 budget and MTFS, including the impact of Local Government Finance Settlement 2019/20; Outcome of the 6 week Budget consultation and Business Rates Retention 2019/20 Pilot – To be circulated as part of the Cabinet agenda for the 19^th December, 2018.

The Committee received a report that aimed to provide an update on the Budget for 2019-2020 and Medium Term Financial strategy (MTFS) for the period 2019 - 2022.  It was noted that (i) the Council is under a duty to set a balanced and sustainable budget and maintain adequate reserves such that it can deliver its statutory responsibilities and priorities; (ii) A Medium Term Financial Strategy (MTFS) covering the entirety of the resources available to the Council is considered to be the best way that resource prioritisation and allocation decisions can be addressed and agreed in a way that provides a stable and considered approach to service delivery and takes into account relevant risks and uncertainty; and (iii) A statutory budget consultation is required with business ratepayers, however, a broader consultation with all residents and other relevant stakeholders is considered to represent best practice.  In particular, the Cabinet Member for Resources and the Voluntary Sector, Councillor Ronald, highlighted (i) The impact of the Chancellor’s recent budget announcement – 29 October; (ii) The Local government Settlement for 2019-2020; (iii) Updates on the 2019-2020 London business Rates retention Scheme; (iv) New governance arrangements on the new capital programme; and (v) Outcomes from the recent budget consultation.

The Committee considered the following budget areas:

·         Additional Government Adult Social Care Funding potentially has a wide application but only applies 2019-20. Further funding will depend on the Fair funding review.

·         London Business Rate Retention Scheme: The Committee noted that London Council’s Executive agreed through urgency powers to extend the pilot scheme in London. However, for 1919-20 the retention will be reduced from 100% to 75% of growth above the baseline and the ‘no detriment’ clause will be removed. Based on these factors, the Council has factored in a conservative estimate of £4m (as opposed to £10m last year).

In conclusion, Councillor Francis thanked Candida Ronald for her presentation.