Decision details

To approve the Council’s Medium Term Financial Plan 2018-21 for publication, including the Directorate and Service Revenue and Capital Budgets that will support the delivery of the Council’s Corporate Strategy.  The MTFP integrates the service strategies and finances into one document.

RESOLVED:

That the following be approved:

1.               £21.3m use of reserves in 2018/19, reduced from £23.6m due to receipt of additional funding announced in the Final Settlement on 7 February 2018 (paragraph 16 of the submitted report).

2.               Changes to the capital programme as outlined in paragraphs 28 and 29 of the submitted report, including £5m increase in 2018/19 for highways as a result of recent severe weather, funded by use of capital receipts. This brought the three year capital programme to £322m, with £144m in 2018/19.

3.               A savings programme over the three years of MTFP 2018?21 to build the council’s financial resilience (paragraph 17 of the submitted report).

4.               The 2018/19 service strategies (Annex 1 of the submitted report).

5.               The detailed service revenue and capital budgets for the year 2018/19 and indicative budgets for the years 2019-21 including amendments resulting from the Final Local Government Financial Settlement and other Government funding changes announced since 7 February 2018 (Annex 1 of the submitted report).

6.               The council‘s proactive and systematic engagement in: responding to proposed changes in local government funding to ensure these changes do not further disadvantage Surrey and seeking appropriate recognition by the Government of the costs of delivering services in Surrey.

7.               Publication of the service revenue and capital budgets as the Medium Term Financial Plan 2018?21 (MTFP 2018?21).

8.               Decisions related to the Early Years single funding formula (paragraphs 50 and 51 of the submitted report):

·      the local authority retained £3.4m of the Early Years Dedicated Schools Grant to manage the sector, support providers and secure the supply of places;

·      the SEN Inclusion Fund to provide additional funding to providers for 3-4 year olds with special educational needs was set at £1.4m (£1.2m in 2017/18)

·      fund individual Early Years providers at rates which were commensurate with the levels of funding in the Early Years DSG:
- £4.60 / hour for three and four year olds (£4.51 in 2017/18);
- £5.88 / hour for two year olds (unchanged); and
- £2.77 / hour additional deprivation funding based on eligibility for the early years pupil premium on economic grounds.

That the following be noted:

9.               The Director of Finance’s letter to the Ministry for Housing, Communities and Local Government confirming the council will spend the Adult Social Care Precept entirely on adult social care functions (Annex 2 of the submitted report);

10.             Fees & charges approved under delegated powers (Annex 3 of the submitted report).

11.             Equality Impact Assessments of the savings proposals within directorate and service budgets (Annex 4 of the submitted report).

Reasons for decisions:

The council has a legal duty to prepare a balanced and sustainable budget and to deliver statutory services to residents.

The Medium Term Financial Plan 2018?21 (MTFP 2018?21) is a three year budget that reflects assumptions about the current local and national financial, economic and political environment. Setting a three year budget is a key element of the council’s multi-year approach to financial management and its aim of achieving a sustainable financial position. Regular reporting through the year will enable effective tracking and management of progress with the strategy and the budget.

[The decisions on this item can be called in by the Overview and Budget Scrutiny Committee]