Agenda item

To consider the report of the Deputy Chief Executive which provides an update on the development of the Council’s medium term financial strategy in the context of the Government’s spending plans; and local service and financial challenges. The report also highlights the scale of the challenge and potential impact.

The Deputy Chief Executive submitted a report which presented an approach and timetable for updating the Council’s medium term financial strategy, taking into account the Government’s spending plans together with issues such as increased demand upon Council services and cost pressures. The report highlighted the scale of the challenges faced and the potential impact of such challenges, in advance of a more detailed report being submitted to the Board in September 2016.

In presenting the report, the Leader reiterated the scale of the challenge which was being faced by the Council, highlighted the difficult decisions which continued to be taken to address the challenge and acknowledged the potential implications of such decisions. At the same time, it was emphasised that the Council’s continued commitment for Leeds to be a compassionate city would remain at the heart of such decision making.

In noting that the intention was to present an updated financial strategy to the Board in September in order to inform the Board’s decision on whether or not to accept the 4 year settlement, it was suggested that enquiries be made with the Treasury as to whether a decision on this could be deferred until after the details of the Autumn statement had been announced. In response, it was undertaken that enquiries on this would be made with relevant parties, including the Local Government Association.

Members discussed the ways in which the Council would need to operate differently in the future, and responding to comments made, a Member placed emphasis upon the need for the Council to work with communities in order to enable them, where appropriate, to become further involved in the delivery of service provision.

The Board paid tribute to the valuable work which had been undertaken by the Scrutiny Board (Strategy and Resources) in respect of fees and charges.

In conclusion, it was noted that Board Members would be kept updated on such matters.

RESOLVED –

(a)  That the medium-term financial challenge and the Government’s proposed four-year funding settlement for those local authorities choosing to accept this offer, be noted. That it also be noted that the Deputy Chief Executive will present an updated medium-term financial strategy at the Board’s September 2016 meeting as part of the decision on whether or not to accept this four-year settlement;

(b)  That the service and policy review work currently underway which is aimed at continuing to deliver the Best Council Plan ambition of tackling poverty and inequalities, whilst at the same time addressing the challenges of increasing demand, reducing resources and the particular pressures on the council’s 2017/18 budget, be noted;

(c)  That the Board’s thanks be expressed to Scrutiny Board (Strategy and Resources) for its work on the issue of fees and charges and that the progress made against the Scrutiny Board’s recommendations, approved by the Executive Board in February 2016, be noted;

(d)  That the potential implications for the Council’s workforce, as set out within the submitted report, together with the indicative timescales presented in Appendix 2, be noted.

(Councillor Yeadon joined the meeting during the consideration of this item)