For cabinet to consider recommending to Council accepting the four year central government funding settlement.

The head of corporate finance presented a report on the proposed four year funding settlement for Herefordshire. She highlighted that:

·         the multi-year deal had been offered to all councils

·         it only included the grants set out in the table in paragraph 10 of the report

·         if accepted, the deal provided a minimum guaranteed funding envelope

·         the deal would require the council to demonstrate that it could set a balanced budget up to 2020 and the approach to this was set out in the draft efficiency statement included as appendix 3 to the report

·         the deal excluded a number of other grants such as the Better Care Fund (BCF)

·         the LGA supported the multi-year approach and

·         the majority of other authorities had accepted or intended to accept the offer.

In the ensuing discussion the following comments were made:

The chairman of the general overview and scrutiny committee stated that while there were concerns over some aspects of the settlement, the deal was the best available at the current time. The general overview and scrutiny committee had recommended acceptance of the settlement but encouraged cabinet to pursue all other avenues for additional funding.

In response to a question from a group leader the head of corporate finance confirmed that the cap on increasing council tax was expected to remain in place until 2020.

Should the rural services grant be received as anticipated then the preference would be to spend it on areas for which it was intended.

The council’s LEP partners, Shropshire and Telford and Wrekin councils, were intending to accept the deal as were a number of district councils within the west midlands combined authority area.

Central government reserved the right to change the level of funding in exceptional circumstances, even after the deal was accepted.

The council would seek assurances on its position in year 5 of the financial strategy period, as there was a high degree of uncertainty over levels of funding.

Resolved

That:

a)    cabinet recommends to Council acceptance of the four year central government funding settlement for 2016-17 through to 2019-20.