Issue - meetings

To consider a report of the Director of Corporate Operations regarding the medium term financial strategy.

Cabinet considered a report of the Director of Corporate Operations regarding the medium term financial strategy.

In introduction it was noted that the County Council was facing a financial perfect storm consisting of inflation and wage pressures, flat government funding and unfunded social care reforms, which could combine to a £200million deficit. An inflation underwrite would be put in place to support the capital programme and consideration may need to be given to the use of reserves to meet the gap. It was confirmed that a meeting with MPs had been arranged in September to highlight the issues and to push for both a two year financial settlement and greater information on social care reforms.

Cabinet acknowledged the potential difficulty of the position, noting that early awareness and action would give greater flexibility. Cabinet also highlighted Hampshire’s willingness to be more accountable for its own performance and to have greater autonomy in decision making as it was currently constrained by a funding model that gave little control over income and demand.

The recommendations in the report were considered and agreed. A decision record is attached to these minutes.