| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 11/051 |
Update of Medium Term Financial Strategy |
The joint report of the Chief Executive and Director of Finance provided an update of the Medium Term Financial Strategy (MTFS) since its approval in February 2011. Members were advised that the New Homes Bonus had now been finalised and it was appropriate to revisit the MTFS and update it in order to assess the impact of this initiative on the savings target faced by the Council. It was noted that the updated MTFS reflecting the 2011/12 New Homes Bonus (and potential future receipts) indicated that the £750,000 savings target programmed for delivery in 2012/13 could be deferred until a future date. However, it was also noted that notwithstanding the respite created by the New Homes Bonus, a funding gap of around £2 million still existed and it was important that the Council continue to identify and deliver efficiency savings wherever possible as well as adhere to the objective of maximising income (subject to market conditions, opportunities and comparable charges elsewhere). The Director of Finance drew attention to the fact that a number of assumptions (for example general inflation and energy price inflation) contained within the MTFS would need to be updated. She advised that a wholesale review of the MTFS would begin in the late summer/autumn. RECOMMENDED: That the updating of the Medium Term Financial Strategy to reflect the impact of the receipt of the New Homes Bonus be endorsed and the updated version of the Strategy be approved by the Council. *Referred to Council |