Decision details

To ask Cabinet to note the Medium Term Financial Plan ahead of this year’s Budget process.

The Portfolio Holder introduced the report which presented the Medium Term Financial Plan (MTFP), a budget forecast including underlying assumptions, covering a five year period from 2020 to 2025 for the General Fund. The plan highlighted the emerging pressures from cuts in Government Funding that needed to be managed over the next four years. Management Team was currently working on plans to reduce the budget going forward. The Plan was based on the Council’s current activities and resources for new priorities and projects would need to be fully planned and the impact of the budget understood, before approval.

The Portfolio Holder drew particular attention to the table on page 65 of the report showing the revenue forecast year-on-year to 2024/25 and also to potential upcoming changes to business rates and New Homes Bonus which could affect the Council’s financial position.

Resolved:

That    (i)         the forecast be noted and the underlying assumptions accepted.

(ii)        the Inflation Management Strategy be endorsed.

(iii)       it be noted that 2020/21 funding will be based on current funding, with spending reviews, fair funding and Business Rate changes now to be implemented from 2021/22.

(iv)      authority be delegated to the Director of Finance and Economy, in consultation with the Leader and the Portfolio Holder for Finance and IT, to agree the Council’s continued participation in the Kent Business Rates pool.