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.

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 considered and agreed in a way that provides a stable and considered approach to service delivery and takes into account relevant risks and uncertainty.

The Committee noted that in February 2017 the Council agreed its budget for 2017/18 and set out a Medium Term Financial Strategy (MTFS) covering the period to 2020. Savings of £52m were identified and approved to be delivered over the MTFS period thereby setting a balanced budget for 3 years with a requirement of £2.8m from general fund reserves. The Council’s Capital programme was also reviewed and updated taking into account the current programme and decisions made during the year and new schemes added on and extended to 2021/22.

Also in 2016/17, the Council had adopted an Outcomes Based Budgeting approach to its revenue budget setting thereby putting the Council’s Strategic Priorities and outcomes for its residents at the heart of financial planning and decision making. This aims to directly link how resources are allocated to the strategic priorities of the Council. An outcomes based approach considers the efficiency and effectiveness of the Council’s services by evaluating comparable information such as financial benchmarking and outcome performance measures. This information provides the starting point for critically reviewing the Council’s relative performance and provides the basis and evidence for its budget decisions.

Furthermore, it was noted that the Council has published a revised Capital Strategy which marks a fundamental review of the Council’s capital priorities that will begin to reshape the capital programme and decision making going forward, focusing on an outcomes based approach and aligning it more explicitly to the Council’s strategic priorities . Further work has been undertaken in 2017 to review the current programme, its links to other key strategies such as the Housing Strategy, ICT Strategy, Leisure Strategy, Asset Management Strategy and Parks and Open Spaces Strategy and the capital investment needs arising from them and consider Members’ capital aspirations over the longer term to refresh the capital programme and develop a funding strategy that supports the implementation of that vision.

The questions and comments from Members on this report may be summarised as follows:

The Committee:

·         Noted that the Council’s Treasury Management Advisers are looking at best practice elsewhere where councils have looked at ways to maximise their investments;

·         Commented that they would have wished to have seen more progress on the way in which the strategic investment programme has been and will be undertaken.  In reply it was noted that the Council has already identified monies for children and social care and are addressing how the Council will respond the resource implications of the Ofsted inspection.

·         Noted that in overall terms this will be feed into the Base Budget and in terms of one off measures using reserves from the Transformation Fund;

·         Requested details of the action points arising from Ofsted report and how the available monies will be allocated;

·         Noted that with regard to questions on business rates LBTH will have greater control and influence over the business rate growth and get earlier access to increase benefits;

·         Noted that concerning the amounts that the Government has put into Adult and Social Care it is not enough resources currently being put into the scheme given the current level of demand;

·         Noted that the improved Better Care Fund is a source that over its 3 year life span is a reducing one so not viable to be totally dependent on this as a source of funding in the face of the ongoing pressures on this service area (e.g. Hospital Discharges);

·         Noted that Health Scrutiny undertook a spotlight session on that issue and would be happy to share the outcomes with the Lead Member;

·         Noted there was a need to look at the sums of money currently coming into this Borough and how it can be spent.  Also the provision of care for Adult Children is a matter of considerable concern; and

·         Noted that there is a regular reporting of such sums (e.g. Treasury Management Report). Whilst regarding the issue of the Council Tax reduction Scheme LBTH is one of the few Council’s that allows for a 100% reduction and consideration is being given to assist those families in greatest need.

As a result of discussions on the report the Chair Moved and it was:-

RESOLVED

The Committee are asked to note the contents of the report that was considered by the Cabinet at its meeting held on Tuesday 19^th September, 2017.