Issue - meetings

Cabinet, at its meeting on 1 February 2017, considered a report on the medium term financial strategy for 2017/18 to 2021/22.

The report of the head of finance, which Cabinet considered on 1 February 2017, is attached.

Cabinet supported the draft strategy, however, it believed that it should be adjusted to state that the council would not borrow to fund capital expenditure unless financially advantageous to do so. 

RECOMMENDATION: to approve the Medium Term Financial Strategy for 2017/18 to 2021/22 as attached to the report of the head of finance to Cabinet on 1 February 2017, subject to amending paragraph 2.1(b) of the strategy to read: “To retain our debt-free status, i.e. we will not borrow to fund capital expenditure, unless financially advantageous to do so”. 

Council considered Cabinet’s recommendation, made at its meeting on 1 February 2017, on the medium term financial strategy for 2017/18 to 2021/22.

Cabinet supported the draft strategy, however, it believed that it should be adjusted to state that the council would not borrow to fund capital expenditure unless financially advantageous to do so. 

RESOLVED: to approve the Medium Term Financial Strategy for 2017/18 to 2021/22 as attached to the head of finance's report to the Cabinet meeting of 1 February 2017, subject to amending paragraph 2.1 (b) of the strategy to read: “To retain our debt-free status, i.e. we will not borrow to fund capital expenditure, unless financially advantageous to do so”. 

To consider the head of finance’s report.  REPORT TO FOLLOW

Cabinet considered the head of finance’s report on the medium term financial strategy.  Cabinet was asked to consider the draft strategy, which covered the period 2017/18 to 2021/22, and recommend its adoption to Council.  The strategy set out the fundamental financial objectives of the council and the principles to be followed in managing the council’s finances to achieve its objectives.  It helped inform the treasury management strategy that governed how the council could invest money held in balances.  In addition to objectives and principles, a narrative on significant current issues was included in each section.  The significant current issues had been updated.  No changes to the principles or objectives of the strategy were proposed. 

A key target of the council was to keep its share of council tax as low as possible whilst continuing to deliver high quality services.  The proposed medium term financial strategy would help achieve this.  The strategy identified the objectives the council would pursue, and the principles it would follow in managing its finances. 

Cabinet supported the draft strategy, however, it believed that it should be adjusted to state that the council would not borrow to fund capital expenditure unless financially advantageous to do so. 

RECOMMENDED: to Council to approve the Medium Term Financial Strategy for 2017/18 to 2021/22 as attached to the report of the head of finance to Cabinet on 1 February 2017, subject to amending 2.1(b) of the strategy to read: “To retain our debt-free status, i.e. we will not borrow to fund capital expenditure, unless financially advantageous to do so”.