Agenda item

The Director of Resources explained to the Committee that as part of the local government final settlement in February 2016, the DCLG had offered Local Authorities the opportunity to sign up to a four year deal regarding the three elements of grant within the announcement. Those grant areas were, Revenue Support Grant (RSG), Rural Services Delivery Grant (RSDG) and Transition Grant (TG).

The report set out the four year profile provided for these grants, the summary of the MTFP for 2016/17 and the current proposals to balance the future years.

The level of reductions to the bottom line exceeded the net funding gap for the years 2018/19 and 2019/20 as there was a requirement in 2020/21 of £1,065k.

The available options were set out as being:

1 – To submit an efficiency plan (expected to be a summary of the MTFP providing detail behind the proposals above) to DCLG and fix the levels of grant for the next four years.

2 – To choose not to submit an efficiency plan and run the risk of the grant levels being changed by Government.

3 – To write expressing our commitment to delivering a balanced position over the four year period but not submitting an efficiency plan.

In making a decision on submitting a four year efficiency plan and agreeing the level of government funding set out in the settlement for 2016/17 the following matters should be taken into account:

Revenue Support Grant (RSG)

The RSG would no longer exist by 2019/20 and WLDC ceased to receive RSG within three years. By agreeing to a four year deal it is proposed that this arrangement would not change

Rural Service Delivery Grant (RSDG)

This grant was substantially increased in the revised settlement in February. WLDC’s settlement provided the following levels of grant over the next four years:

2016/17 £ 471k, 2017/18 £381k, 2018/19 £293k, 2019/20 £381k.

The four year deal would secure this income stream for the four years.

WLDC Strategy

West Lindsey District Council was committed to being independent of RSG in the next four years. The Government’s commitment would provide some certainty over that period whilst provision was put in place to deliver that strategy.

A commitment to DCLG would require confidence in plans to secure a balanced budget over the medium term.

The new government had made no announcements regarding this proposition and it was therefore assumed it was still committed to the four year deal arrangements. However, it was known that the new Chancellor would deliver his first autumn statement on 23 November which would set the new government’s financial strategy for the remainder of the current political term.

Councillor Bierley, as the Council’s representative on the Rural Services Network questioned whether WLDC would be disadvantaged in the future if more Rural Services Grant became available.  The Director of Resources indicated that whilst the report contained as much information as was available, those Councils that had signed up to the four year agreement could get preferential treatment.  It was not known what would happen to those Councils who were unable to sign up to the agreement.

Although some Members did not feel that the proposals equated to a good deal, the recommendations in the report were moved and seconded, and on being voted upon it was:

RESOLVED that:

a)    the Council pursue a four Year Settlement and provide a supporting Efficiency Plan;

b)    the submission of the efficiency plan attached to the report, along with the MTFP agreed in March 2016, be recommended to Council; and

c)    the Chief Executive and Director of Resources, in consultation with the Leader, be delegated with any presentational changes deemed appropriate before submission.