Agenda item

Purpose of Report

To recommend to the Executive the draft Medium Term Financial Strategy for the period 2019-2024, the draft budget for 2019/20 and the draft Capital Strategy 2019-2024 for consideration.

Decision

That the Executive:

(1)       Recommends to Council for approval the draft Medium Term Financial Strategy 2019-2024 and the draft Capital Strategy 2019-2024, including the following specific elements:

·         a proposed Council Tax increase of 2.93% for 2019/20;

·         a proposed housing rent decrease of 1% for 2019/20;

·         the inclusion of the Council as a member of the Lincolnshire Business Rates Pool in 2019/20;

·         the draft General Fund revenue forecast 2019/20 – 2023/24 as shown in Appendix 1 of the report and the main basis on which the budget has been calculated;

·         the draft General Investment Programme 2019/20 – 2023/24 as shown in Appendix 2 of the report and the main basis on which the programme has been calculated;

·         the draft Housing Revenue Account forecast 2019/20 – 2023/24 as shown in Appendix 3 of the report and the main basis on which the programme has been calculated;

·         the draft Housing Investment Programme 2019/20 – 2023/24 as shown in Appendix 4 of the report and the main basis on which the programme has been calculated.

Alternative Options Considered and Rejected

None.

Reason for Decision

Further to consideration of the Medium Term Financial Strategy 2019-2024 and the budget and Council Tax proposal for 2019/20 at the meeting of the Executive held on 21 January 2019, the initial draft had been subject to public consultation and scrutiny via the Council’s Budget Review Group. In addition, an all member workshop was undertaken during January 2019 to ensure that as large a number of members as possible had the opportunity to fully understand the financial position of the Council.

The minutes of the Budget Review Group’s meeting held on 6 February 2019 were appended to the report and it was noted that the Group had supported the Medium Term Financial Strategy in terms of its principles and the process that had been followed to develop it. No comments had been received in response to the public consultation.

The Council’s Capital Programme was included as part of the Medium Term Financial Strategy and it was noted, as a caveat, that some significant capital schemes had not yet been reflected in the Capital Programme. These included:

·         the De Wint Court redevelopment;

·         the proposed Crematorium enhancements;

·         the proposed development of the Western Growth Corridor.

Upon approval by the Executive it was reported that these schemes would have an impact on the Council’s Medium Term Financial Strategy.