Agenda item

Medium Term Financial Strategy - Mid Year Update

To consider the Medium Term Financial Strategy – Mid Year update report.

Decision:

RESOLVED to recommend to Council the mid-year updated Medium Term Financial Strategy for approval.

 

 

Minutes:

Councillor Hargreaves summarised the report which provided an updated financial position for the Medium Term Financial Strategy (MTFS). The report had also been considered by the Scrutiny Committee at its meeting in September. He said it had been a particularly difficult year to forecast, due to the impact of Covid-19 on the Council’s services and finances. All losses incurred due to the non payment of Council Tax and Business Rates were expected to be managed by the Council and no additional financial support was expected. He spoke on the Business Recovery Fund and the emergency reserves set aside in the event that the Covid-19 situation took another turn for the worse. He drew Cabinet’s attention to the Council’s reliance on investment income, and highlighted the Investment Income Protection Reserve that had been established in case of any tenant failure at any one of the commercial assets. He said council tax, regardless of the income generated via commercial investments, would always be a vital income stream for local authorities. It was important that the Council diversified its income and that residents had a stake in the services provided to the local community. 

 

In response to a question from Councillor Criscione regarding Covid-19 funding issued by Government, the Director – Finance and Corporate Services said there were two methodologies to calculate the income that would be received and details would be circulated with Members once the Council had been sent this information.

 

In response to a question from Councillor Criscione regarding a Council Tax freeze, Councillor Hargreaves said he was happy to discuss this another time but the Uttlesford precept was already low and the previous increase had amounted to an average of £5 extra per annum. He added that UDC had the most generous Local Council Tax Support scheme in Essex for those who could not afford to pay.

 

In response to a comment from Councillor Criscione, Councillor Lees said a new initiative on domestic abuse had been rolled out by Essex County Council and Essex Police and the Council would look into whether funding was available from a district perspective.

 

The Leader apologised as he had received an email from Councillor Dean regarding the CPDP considered during the previous item. He read the email which expressed disappointment that the CPDP did not differ from the version presented at the previous Scrutiny meeting, despite his questions and suggested improvements. The Leader thanked Councillor Dean for his comments.

 

Councillor Armstrong thanked Councillor Hargreaves and the financial team for their hard work in improving the Council’s finances. Due to their hard work, he said he was delighted to announce that £150,000 would be made available for the Saffron Walden Sports Pitch Project. He said this was subject to due diligence and the MTFS being approved at Full Council.

 

The Leader said the resident groups behind the project had raised significant monies through their own fundraising efforts and the project had been led by the great efforts of boys and girls football teams in the town.

 

Councillor Hargreaves said the grant had been awarded to Saffron Walden as the project team had submitted a very impressive application. He said guidance would be issued on how to apply for such grants in due course.

 

RESOLVED to recommend to Council the mid-year updated Medium Term Financial Strategy for approval.

 

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