The Medium-Term Financial Plan (MTFP) sets out the key financial management principles and budget assumptions. It is then used as the  framework for the detailed budget setting process to ensure that the Council’s resources are managed effectively in order to meet its statutory responsibilities and deliver the priorities of the Council, over the medium term.

The report was due to be reported in November but was postponed due to purdah. It sets out the approval for the proposed budget timetable and guidelines that would be followed to develop the budget for 2020/21 and the financial forecast up to 2022/23.  The current draft forecast as outlined in the report is to aid Members in understanding the basis of what is known now, the financial trajectory of the Council and identifying actions that can be taken to address the continuing deficit of resources over expenditure. These actions may involve Members having to take difficult decisions to address the budget gap.

The report also provided the Policy, Resources & Economic Development Committee with an update to the 2019/20 General Fund Revenue budget, Housing Revenue Account and Capital program as well as the Treasury Management Mid-Year Review 2019/20.

At Policy, Resources & Economic Development Committee on 11th September 2019 the General Fund was forecasting a deficit of £267k, revised forecast indicated as at period 8 the general position as £213k deficit.

The Housing Revenue Account also forecast a net operating deficit of £267k as at period 8 this forecast has been revised to £418k.

The Capital Programme had indicated that there was an underspend of £9.593m this has been revised to £11.044m excluding the borrowing to Seven Arches investment Limited.

Cllr Cloke, referred to the income received by Ingatestone Parish Council for parking at Market Place. This was noted by Officers.

Cllr Tumbridge MOVED and Cllr Mrs Hones SECONDED the recommendation in the report.

Members are asked to:

1.            Approve the budget guidelines and assumptions for 2020/21 as set out in Appendix A of the report.

2.            To note the projected outturn forecasts for 2019/20 as set out within Appendix B, Appendix E and Appendix G of the report.

3.            To note the draft 3-year financial forecast as set out in Appendix B of the report for General Fund and Appendix E for Housing Revenue Account.

4.            To note the Treasury Management Activity for the year to date.

A vote was taken by a show of hands and is was RESOLVED.

Reasons for Recommendation

Effective financial management underpins all of the priorities for the Council and will enable the Council to operate within a sustainable budget environment.