An outline of the key aspects of the Local Authority’s financial position for 2017/18 will be presented.

Recommended –

The Forum is asked to consider the presentation and to give feedback.

(Andrew Redding – 01274 432678)

The Authority’s Head of Budgeting, Management Accounting and Projects attended the meeting to give Forum Members an update verbally on the position of the Council’s wider budget planning. It was explained that this is provided in advance of the Council’s 2017-2019 budget proposals being presented in more detail on 7 December. He reported:

·         The Council’s forecast budget position is set out in the Medium Term Financial Strategy that was published in July 2016. The Strategy sets out detailed assumptions underpinning the forecast but as with any assumptions there will be some deviation in reality. However, overlaying this there are some major issues on the horizon which will affect the Council’s position:

o   Business Rate Retention – three strands:

§  Fair funding review

§  Business Rates Baseline re-setting

§  100% transfer of business rates

o   Brexit

o   New Homes Bonus Consultation

o   Devolution

o   National Schools Funding Formula consultation

·         As a reminder, since the austerity measures commenced, the Council has had to make reduction of over £218m up to 2016/17. The 2016/17 budgetary gap is over £48m when you include reductions to Public Health grant. The budget gap to be closed is £11.6m in 2017/18 in addition to the £24m of savings agreed by Full Council in February 2016. The gap for 2018/19 is currently forecast to be a further £20.5m. We may need to find additional savings to pay for any transitional costs so the targets could increase.

·         We are adopting this year an Outcome Based Budgeting Approach by arranging the Council’s Budget into the recognised priority Outcomes. i.e. the key things that are important to the Council and Districts. With this exercise we are trying to design what the Council will look like in 2020/21.

·         Key risks in managing this approach are:

o   Managing demand in Adult Social Care

o   Managing the rising number of Looked After Children

o   Discussions with West Yorkshire Partners on sub regional initiatives

o   Home to School Transport

o   Inflationary pressures and whether these can be contained within Council Tax rises

o   Business Rate Tax base – still experiencing appeals

o   Responses of Partners to the measures the Council might take that lead to additional budgetary pressures on the Council

o   Ultimately there are risks associated with delivery and the change effort required.

·         The Council has applied for a four year settlement from Government. If this application is successful it will provide some certainty on the rate of descent of our Revenue Support Grant allowing the Council to make some plans around those planned reductions.

·         The Council will be publishing the detailed budget proposals on the 28 November for consultation ahead of the Executive meeting on 6 December.

·         There will be an Autumn Statement from Government on 23 November but we are under no illusion that austerity measures are and will continue to impact on local government.

In response, Members asked the following questions and made the following comments:

·         What exercise is KPMG doing with the Council? The Assistant Director, Performance, Commissioning and Partners responded to explain that KPMG is looking at the Council’s early help offer and the options for delivery.

·         Does the Council do any ‘doomsday’ budget planning? Yes it does.

·         In recent SEN Reference Group meetings Forum Members has talked about other funding streams that might be available to Bradford, including from the Northern Powerhouse strategy. The Head of Budgeting stated that these streams are on the Council’s radar, but offered a view that discussions around the Northern Powerhouse (and announcements related to this) appear to be stalled perhaps due to Brexit considerations.

The Chair thanked the Head of Budgeting, Management Accounting and Projects for his presentation.

Resolved –

That the information presented verbally (and recorded in the minutes) be noted.