Agenda item

Councillor Worby introduced a report that provided an update on the Medium Term Financial Strategy (MTFS), approved as part of the Budget Framework 2015/16 report to Assembly on 24 February 2015, together with details of the proposed launch of the Council’s Ambition 2020 programme and the Growth Commission.

Councillor Worby explained that the Ambition 2020 programme would identify a series of options to close the circa £72m budget gap that was projected by 2020/21, while at the same time deliver the Council’s political ambitions.  The savings that the Council had already had to make since 2010 and the projected further cuts by Government up to 2020/21 meant that the Council would, by the end of the decade, be spending less than half than it was at the beginning of the decade.  Cuts of that magnitude required the Council to apply a radical, new approach to the way that it operated while continuing to meet the needs of the local community. 

Alongside the Ambition 2020 programme, a new Growth Commission would be responsible for progressing the Council’s ambitions to create 35,000 new homes and 10,000 new jobs over the next 15 years.  Councillor Worby stressed that attracting new businesses and delivering the largest regeneration programme since the creation of the Becontree Estate were key components of the Council’s plans for a Borough that was fit for the 21^st Century and the Growth Commission would be the mechanism to drive that forward. 

With regard to the additional capacity that was required to support both projects, it was noted that the Council’s Divisional Director of Commissioning and Safeguarding, Meena Kishinani, had been seconded to the position of Ambition 2020 Programme Director while Mike Emmerich, who had been instrumental in developing the devolution plans for Manchester, had been brought in to head up the Growth Commission.  Also, funding of £1.5m was required to pump-prime the projects.

Cabinet Members spoke in support of the proposals and the Leader commented on the positive message that the initiatives would send out to local residents and the business community. 

In respect of the MTFS, it was noted that the latest assessment showed an increase in the budget gap for 2016/17 to £5.71m.  The original budget gap of £2.152m was planned to be met from reserves but in view of the increase it was now proposed that officers commence a savings exercise as part of the Ambition 2020 programme.  In response to an enquiry, the Chief Finance Officer advised that the projections within the MTFS assumed an additional £5m in Council Tax income and a further £3m from an increase in the Council Tax Base as a result of the building of new homes in the Borough for the five-year period up to 2020/21.

Cabinet resolved to:

(i)  Agree the Council’s MTFS as detailed in the report and note the projected circa £72m budget shortfall from 2016/17 through to 2020/21;

(ii)  Agree to the creation of the Ambition 2020 programme as the vehicle for identifying options to close the projected budget gap and deliver the Council’s ambitions;

(iii)  Agree the allocation of £1m to fund the initial stages of the Ambition 2020 programme;

(iv)  Agree to allocate up to £0.5m from reserves to fund the Growth Commission;

(v)  Note the impact of the Chancellor’s Emergency Budget on 8 July on the Council’s in-year position; and

(vi)  Agree that officers commence a savings process in respect of the 2016/17 budget gap of £5.71m, in the first instance working these up as “quick wins” in the Ambition 2020 programme.