Issue - meetings

That the Chief Finance Officer’s (CFO) report be noted and the issues contained within, including the local government finance settlement and the sections on key risks, be considered when setting the council tax for 2016/17 and agreeing the Council’s Medium Term Financial Plan (MTFP).

The Executive considered a report from the Chief Finance Officer setting out issues and risks to be considered when setting the council tax for 2016/17 and agreeing the Council’s Medium Term Financial Plan (MTFP).

The Executive Member for Economic Development and Finance went through the report and explained that the funding settlement for 2016/17 had been particularly harsh on a large number of local authorities, including Wokingham.  Councillor Pollock drew Members’ attention to the ‘Analysis of Spending Power Changes’ section of the report and explained that the £13m Government grant, that had been expected to be withdrawn over the life of this Parliament, would now be withdrawn in the next two years with a small amount in year 3. 

Councillor Pollock went on to say that the Council had now moved into a “negative Government grant” which would be taken away from business rates. This would mean that of the £63m, currently raised through business rates, by 2020 the Council would only keep around £6m of this amount.  He also highlighted the changes to the New Homes Bonus and the implications of this change. 

The Executive Member for Children’s Services drew Members’ attention to the fact that the Education Services Grant would reduce in 2016/17 and cease entirely over the spending review period; which would equate to a loss in grant income of over £1.5m over the next four years.  The Council did however still need to provide a large number of services to its schools and the loss of this money would have an impact on the provision of these services. 

The Leader of Council advised that the poor settlement had brought the six Berkshire unitary authorities together to physically go and lobby the Minister. In addition John Redwood had been lobbying the Secretary of State on Wokingham’s behalf.

RESOLVED: That the Chief Finance Officer’s (CFO) report be noted and the issues contained within, including the local government finance settlement and the sections on key risks, be considered when setting the council tax for 2016/17 and agreeing the Council’s Medium Term Financial Plan (MTFP).