The Council will be setting its budget for 2020/21 in February next year. This includes updating the Medium Term Financial Plan to reflect the aims arising out of the new Corporate Plan adopted by the Council in October 2019.
Key issues in the Medium Term Financial Plan:
- In 2014/15 local income streams such as Council Tax accounted for only 47% of the Council's income, the balance being made up by Government grants; by 2020/21 this is expected to have risen to 98% with only 2% coming from the Government.
- New Homes Bonus is Government funding, awarded on the basis of the annual increase in housing numbers. At the height of the scheme, the Council received £1.2 million, but payments have reduced significantly since then. The current MTFP anticipates receipts of just £0.2million pa and even this funding is under threat in the next Government spending review.
- A Council Tax increase of 2% pa is included in the Plan, in line with Government consultation on the Council Tax referendum principles.
- The current 75% Business Rates Retention pilot scheme ends on 31st March 2020, whereupon the Staffordshire pool will revert to a 50% retention basis. This will remain in place until the 75% scheme is rolled out nationally.
- The Council will need to encourage and enable sustainable economic and housing growth in order to optimise future income from business rates, council tax and New Homes Bonus.
- The Council is reviewing its existing fees and charges with the aim of meeting its income generation targets arising out of the efficiency programme.
- The Council's affordable housing joint venture with Your Housing Group has enabled the development of 276 affordable housing units and care facilities. The £19million loan facility provided to the venture has benefited the Council by around £275,000 annually. This arrangement is currently under review, with a new arrangement being considered.
- The £3.1million efficiency programme adopted by the Council in February 2017 will enter its fourth year in 2020/21. Its focus will be on savings arising out of: the further implementation of the Alliance Environment Services delivery model for Waste, Streets and Grounds Maintenance services; a review of the Council's building assets; and a focus on income generation. The aim is to continue to make savings, whilst maintaining priority services.
Please send your comments on the MTFP to:- consultation@staffsmoorlands.gov.uk
