Decision details

The purpose of this report is to consider the medium term prospects for the County Council's finances to 2021/22.

Cabinet received a report of the Director of Corporate Resources regarding the Medium Term Financial Strategy.

The report was introduced and it was explained that its focus was on looking ahead to plan for meeting service delivery requirements. Uncertainties around funding from Government grant, Business Rates and any specific funding for Adults or Children’s Social Care were highlighted and it was noted that the report was prepared according to the best available information. The reserves position was set out and Cabinet heard that compared with the national average of 25 days contingency, Hampshire had sufficient (non-allocated) reserves for 27 days of service delivery. The significance of the net contribution of £19.5 million in generated income was also highlighted. In order to demonstrate the anticipated funding gap, Cabinet’s attention was drawn to the diagram at 6.15 of the report.

Cabinet welcomed the report and the diagram and recognised the scale of the budget involved, in light of which any possible income from Business Rates would be relatively small. The factors influencing the inflationary pressure of £76 million were discussed and it was acknowledged that substantial increases in funding from Government were unlikely. The long term economic and social benefits of investment, such as at Farnborough airport were noted and Members welcomed ongoing investment in facilities to benefit communities.

The recommendations in the report were proposed and agreed. The decision record is attached.