Issue - meetings

Budget Strategy - Risk Assessment Update

Meeting: 19/11/2018 - Audit, Governance and Standards Committee (Item 63)

63 Budget Strategy - Risk Assessment Update pdf icon PDF 66 KB

Additional documents:

Minutes:

Mr Mark Green, the Director of Finance and Business Improvement, presented his report providing an update on the budget risks facing the Council.  Mr Green explained that:

 

·  There were two main issues to be noted.  Firstly, as the end of the current four year local government funding settlement approached, there remained uncertainty about what this would mean in practice for the Council.  Whilst the government had signalled an “end to austerity”, the focus for growth in public expenditure in the Chancellor’s November 2018 budget was on the NHS, Defence and Social Services.  There would be a Spending Review in 2019 which would determine the overall resources devoted to local government.  Allocation of resources between local authorities then depended on a Fair Funding Review which was currently being carried out by MHCLG.  There were therefore a number of variables that could affect the Council’s financial position.

 

·  Secondly, although there was now a Brexit deal on the table, the financial impact of a disorderly Brexit for the Council would be two-fold.  In the short term the Council might face increased costs in delivering services.  The Council would look to recoup these costs from central government, but at this stage there was no certainty that they would be underwritten.  In addition, there might be adverse longer effects on the economy.  If a disorderly Brexit led to a recession, the Council would be impacted in a number of ways including a fall in business rates income and increasing pressure on homelessness budgets.

 

RESOLVED:  That the updated risk assessment of the Budget Strategy, attached as Appendix A to the report of the Director of Finance and Business Improvement, be noted.