110 Financial Strategy

CIPFA’s Prudential Code came into force on 1 April 2004.  Guidance on the impact of the Code should be sought from Corporate Accountancy.

110.1 Medium Term Financial Plan

The Council is required to produce a medium term financial plan.  This integrates the capital and revenue plans of the Council.

In preparing the plans due regard will be given to the budget assumptions and budget risks.

The medium term financial plan will cover a period of a minimum of 3 years.

It is an integral part of the Council’s budget setting process.

It will be managed and monitored throughout the year.

Cabinet will consider the updated Medium Term Financial Plan in July each year.  This will provide the framework for the budget process in the forthcoming financial year.

The Medium Term Financial Plan will have due regard to:

• The Government’s Spending Review
• Projected inflation
• Borrow to Invest to Save
• Non recurring items
• Approved service changes
• Fees and charges
• Community Plan priorities
• Council Tax projections
• Budget reduction requirements
• Budget pressures/service charges
• Level of Council balances
• Levels of Reserves and Provisions
• Budget risks
• Government funding/Grant projections
• Capital proposals/revenue implications from the Capital Programme

110.2 Planning Process

February 
• Agree Revenue Budgets
• Approve Capital Programme
• Set Council Tax
• Approve Medium Term Financial Plan
• Review adequacy of Reserves and Provisions
• Annual Efficiency Savings Statement

July 
• Review Level of Reserves and Provisions following closedown
• Final Accounts – Impact on Budget Strategy
• Update Medium Term Financial Plan
• Detailed Guidance for Budget Process
• Government Spending Review – Triennial Update
 

September/January 
• Detailed Budget Review and Proposals
• Consultation with Stakeholders
 

November           • Provisional Grant Settlement
December           • Cabinet consider Budget Implications

January                • Final Grant Settlement