The Council will be setting its budget for 2017/18 in February. This involves updating the Medium Term Financial Plan (MTFP) for the next four years.
The MTFP sets out how Council funds will be spent on the services and priorities which have been agreed after consulting local residents and partner organisations.
These priorities are:
- Helping to create a safer and healthier environment for our residents to live and work in
- Meeting financial challenges and providing value for money
- Supporting economic development and regeneration
- Protecting and improving the environment
The MTFP aims to make sure that the funds available are used efficiently and effectively to deliver these priorities. It also outlines the significant financial pressures facing the Council over the next four years and the plans to respond to these pressures.
Medium term financial plan for High Peak [434KB]
Get involved
We are now asking people to give us their feedback on these proposals. All comments will be read and published on the website anonymously and considered before final decisions are made. Please send your comments to policy@highpeak.gov.uk
SUMMARY
The key issues in the Medium Term Financial Plan are:
- The way in which all local authorities are financed is changing from government grant to locally generated income such as council tax and business rates together with fees and charges for Council services. Three years ago local income streams accounted for only 56% of the Council's income; by 2017/18 this is expected to have risen to 70%.
- Revenue Support Grant - the core Government grant to Local Authorities - is to be phased out completely by the end of 2019/20. This amounts to a £1.1million reduction in funding over the three years.
- The Council has benefited significantly recently from the New Homes Bonus - the Government grant funding awarded to councils based on an increase in housing provision. In 2016/17 income was £773,000. Changes in the national scheme are likely to reduce this funding to £364,000 by 2020/21.
- The plan proposes an increase in the Council's share of council tax of 1.9% per year over the next 3 years which will generate £100,000 in income per annum.
- Details of the proposed business rates retention system which will mean councils retain 100% of Business Rates growth income are not yet available. At this stage the Council has not included any assumptions based on the new system in the MTFP.
- The Council is reviewing its fees and charges with the aim of generating an extra £100,000 per year.
- The Council will need to encourage and enable sustainable economic and housing growth even more than it already does so as to get the optimum income from business rates, council tax and New Homes Bonus in future.
- The Council maintains a stock of over 4,000 housing properties. Under government legislation, annual rent reductions of 1% are required until 2019/20, reducing income by £2.4 million over the next four years. A full review of the Housing Business Plan is in progress to tackle the deficit.
