Agenda item

To consider the Medium-Term Financial Sustainability Strategy for the six-year period, 2016/2017 to 2021/2022.

Mr Thompson presented the Medium Term Financial Sustainability Strategy for the six year period, 2016 to 2022.

It was explained to the Committee that the proposed Strategy summarised the comprehensive review and assessment that had been undertaken of how future service delivery could be financed and the level of savings required for activities to be facilitated and maintained. Members also noted that the Strategy complied with the conditions set by the Secretary of State for Communities and Local Government in March 2016, that acceptance of a four-year Funding Settlement Offer required publication by 14 October 2016 of an ‘efficiency plan’ that could be combined with medium-term financial strategies. Mr Thompson advised that the Secretary of State had assured local authorities that they would not financially be any worse off by accepting the four-year Funding Settlement Offer.

The Committee was provided with details of the level of savings needed to be achieved each year to balance the budgets and of the Savings Programme, or ‘efficiency plan’, which would constitute seven thematic workstreams that would be developed and finessed over the next four months.

Upon questioning from the Committee, Mr Thompson reported that he considered that one of the biggest challenges over the next six years would be maintaining staff motivation and it would be important to get across the message that after years of austerity, the situation appeared to be becoming more manageable.

The Committee raised further questions relating to the impact of the Settlement Offer on Blackpool and Mr Thompson advised that it was projected that the authority would not be any worse off in 2019/2020 than it was in 2015/2016, a significant part of which would be achieved through increased revenue from Council Tax and Business Rates. Mr Thompson added that the aim was to increase revenue by achieving a growth in properties and in prosperity.

With regards to Business Rates, the Committee noted the assumption in the Strategy that the existing system was maintained and Members questioned the level of risk involved with such an assumption. Mr Thompson noted the Department for Communities and Local Government’s ongoing review on business rates retention and advised that the Medium Term Financial Sustainability Strategy could not pre-empt the outcome of the review and that it would be necessary to wait until a new system was formally announced before revising plans.

Members questioned what the impact would be of the establishment of a Combined Authority. Mr Thompson advised that the impact should be positive in terms of being able to achieve economies of scale. Mr Cavill also advised that the establishment of the Combined Authority would improve access to funding streams and would help to improve infrastructure, as well as potentially leading to a co-ordinated approach to new housing across Lancashire.

Members considered the savings that were still required to be made and queried what the cumulative impact of budget cuts in Blackpool since 2011/2012 was expected to be at the end of 2021/2022. Mr Thompson advised that he did not currently have the figure available, but that it could be calculated and the Committee could subsequently be informed.

The Committee agreed to receive information to be distributed outside of the meeting, on what the calculated cumulative impact of budget cuts in Blackpool since 2011/2012 was expected to be at the end of 2021/2022.