Issue - meetings

Cabinet considered a report which set out the Medium Term Financial Strategy (MTFS). The MTFS provided an integrated view of the whole of Thanet District Council’s (TDC) finances which also set out objectives to be met, risks to be managed and the policies to be applied over the period 2019-2023. It was pointed out that whilst the report was focused on the Council’s future financial position, it was helpful to look back at past circumstances as highlighted below:

It was not long that the council was exposed to and had to manage a number of significant financial risks. Decisions made in the past meant the council was having to “firefight” events rather than being able to focus on improving service delivery. As a result, reserves diminished and the delivery of the TDC’s corporate priorities was compromised. Action had to be taken to get the council at least on a stable footing, to be able to build for the future.

The council had just had its 2017-18 accounts audited and the result showed a satisfactory financial position as well a modest rebuilding of reserve levels. The council secured an unqualified value for money conclusion and unqualified audit opinion from the auditors. In its Audit Findings Report, Grant Thornton stated “the Council’s current reserves position, despite the improvement during 2017-18, does not provide much room for manoeuvre should the full range of savings not be identified”. In short, the council still had some way to go on its road to recovery.

The council, like all other local authorities, was experiencing a challenging period whilst central Government pushed on with its drive to reduce the national deficit. The Government was currently undertaking a Fair Funding Review and a review of business rates. In addition the autumn budget and the 2019 Comprehensive Spending Review would also have a significant impact on the future direction of the Medium Term Financial Strategy (MTFS). This report therefore needed to be considered within the context of these external uncertainties.

Cabinet further considered the assumptions made for the projected funding, pressures and anticipated savings.

Members were advised that a revision to the CIPFA Prudential Code for Capital Finance in Local Authorities was issued in December 2017, with a new requirement being that local authorities were now required to produce a Capital Strategy for approval.

Another revision to the CIPFA Treasury Management in the Public Services Code of Practice was issued in December 2017, with a new requirement being that local authorities produced a Non-Treasury Investments Report for approval.

Councillor Campbell spoke under Council Procedure 20.1.

Councillor Gregory proposed, Councillor Savage seconded and Members agreed the following:

1.  The Medium Term Financial Strategy 2019-23;

2.  The Capital Strategy and Non-Treasury Management Investment Report as attached in Annexes 2 and 3 to the report.