To agree the process for the development of the new corporate plan and medium term financial strategy (MTFS).

The report was presented by the assistant director, place based commissioning, and the chief financial officer.

The process was set out for developing the corporate forward plan for the next four years, in recognition of the link between the corporate plan and finance.

The implementation timeframe includes a period of consultation with the view to seek approval by Council in February 2016. A key point is understanding engagement in developing plans and through public consultation.

With the new administration, the strategy would be extended into 2019/20. The paper sets out the projected savings required in this period and the current year amounting to £42m, which would now be significantly more difficult without making substantial changes in how services are delivered.

The report shows how funding is reduced with growing pressures. There is an increasing number of older people, with 31% of the population estimated to be over the age of 65 by 2030, increasing demand for services.  The proportion of the overall budget for adult care is therefore estimated to increase, as it has over the past five years. Assumptions set out in the report are felt to be realistic.  More information will be available from the budget in July and comprehensive spending review in October. Consultation and engagement with new Cabinet Members, the public and other stakeholders including local MPs is key in establishing how to achieve targets.

The Green group leader referred to some of the report’s assumptions, in particular the public’s view on paying more in council tax and whether this could be revisited. She further asked about the achievability of the rate of new homes to be built by 2020 and whether there was a contingency plan.  It was confirmed that the rate assumed for home-building was 500 houses per year, and would be dependent on the Local Development Framework being adopted as well as the county’s infrastructure. 

In response to the leader of It’s Our County’s request for quarterly reporting on growth and a question on how this report relates to the economic master plan for the county, the chief executive explained that forward plans would be brought to Cabinet in coming months and that the master plan is not intended to repeat what is happening in the county.

The gathering of reliable data including growth indicators was noted as critical. 

The chairman of the Health and Social Care Overview and Scrutiny Committee noted the number of planning permissions granted that had not commenced development, with concern that land-owners were banking land.

The Liberal Democrat group leader commented on the increased financial demands on the council with growth in housing. 

In response to a question regarding the increase in the pension deficit from the Cabinet Member for Infrastructure, the chief financial officer confirmed that it is normal to be paying such debt over a long term, 21 years. The amount repaid each year is revised based on actuarial valuations. Responding to the Liberal Democrat group leader regarding the pension deficit, the chief financial officer explained that the value of assets has increase significantly by about 8% but the value of obligations had increased by 19%, mostly due to increased life expectancy.  More detail is set out in the council’s draft accounts on the website. 

RESOLVED THAT:

(a)  the approach outlined in the report to developing the corporate plan and medium term financial strategy be agreed; and

(b)  the timescale for future budget monitoring and performance reports be noted.