Agenda item

Cabinet Member:Leader

Forward Plan Ref:  2009/153

Contact:  Lorna Baxter, Assistant Head of Finance (01865 323971)  

Report by:  Assistant Chief Executive & Chief Finance Office(CA8B)

This report is the third in a series on the Service and Resource Planning process for 2010/11 to 2014/15, providing councillors with information on budget issues for 2010/11 and the medium term. It is the final report to Cabinet before Council considers the budget on 9 February 2010.  The report sets out the latest information on the Council’s financial position, includes the Treasury Management Strategy for 2010/11 and considers the capital funding, including an updated Capital Programme. 

The Leader has prepared a separate report (CA8A), circulated alongside this report, which sets out the basis for the Cabinet’s budget proposals to Council and Medium Term Financial Plan (MTFP) for 2010/11 to 2014/15.  This takes into consideration comments on the draft budget proposals from the individual Scrutiny Committees in December 2009 as well as the latest information on the Council’s financial position as outlined in this report.  It also takes account of the public consultation on the budget which was undertaken during October 2009, the outcomes of which are set out in an annex to that report.

The Cabinet is RECOMMENDED to:

(a)         (in respect of revenue) RECOMMEND Council to approve:

(1)                                 a budget for 2010/11 and a medium term plan to 2014/15, based on the proposals set out by the Leader and Cabinet Member for Finance;

(2)                                  a budget requirement for 2010/11;

(3)                                  a precept for 2010/11;

(4)                                  a council tax for band D equivalent properties;

(5)                                  the use of unallocated LABGI funding as set out in Annex 5;

(6)                                  virement arrangements to operate within the approved budget;

(b)                    (in respect of treasury management) RECOMMEND Council to approve:

(1)                                 the Treasury Management Strategy Statement ;

(2)                                 Prudential Indicators from April 2010;

(3)                                 that in relation to the 2010/11 strategy any further changes required be delegated to the Chief Finance Officer in consultation with the Leader and Cabinet Member for Finance and leaders of the Opposition and Labour group.

(c)                     RECOMMEND Council to approve the Minimum Revenue Provision Methodology Statement as set out in paragraphs 10 to 13 of Annex 7.

(d)                    (in respect of capital) RECOMMEND Council to approve:

(1)                                 the updated Capital Strategy and Corporate Asset Management Plan;

(2)                                 a Capital Programme for 2010/11 to 2014/15;

(3)                                 Prudential Indicators from April 2010.

(e)                     RECOMMEND Council to delegate authority to the Leader of the Council, following consultation with the Chief Finance Officer, to make appropriate changes to the proposed budget.

Cabinet considered the third in a series on the Service and Resource Planning process for 2010/11 to 2014/15, providing councillors with information on budget issues for 2010/11 and the medium term.  The report set out the latest information on the Council’s financial position, included the Treasury Management Strategy for 2010/11 and considered the capital funding, including an updated Capital Programme. 

Officers drew attention to additional information contained in the addenda and supplementary report by the Assistant Chief Finance Officer including an amendment to recommendation (e) and two additional recommendations.

Cabinet also considered a separate report by the Leader which set out the basis for the Cabinet’s budget proposals to Council and Medium Term Financial Plan (MTFP) for 2010/11 to 2014/15.  This took into consideration comments on the draft budget proposals from the individual Scrutiny Committees in December 2009 as well as the latest information on the Council’s financial position as outlined in the main report.  It also took account of the public consultation on the budget which was undertaken during October 2009.

The Leader commented that local government finances were likely to be under pressure for the next 5-10 years and that the current proposals recognised that position. He noted a number of changes as a result of consultation, which included finding alternatives savings to those originally proposed for Youth Services. He highlighted a number of programmes including Building Schools for the Future and the Transformation agenda around Social & Community Services and referred to the financial impact on the Council with the transfer of concessionary fares. He noted with appreciation the stability provided by the public sector pay announcements by central government and flagged as a danger the impact of proposals for free social care for adults in a high level of need. He noted the impact of the recent severe weather. He commented that the proposed level of Council tax in the next year was higher than he would wish to see.

During discussion the Cabinet thanked the Assistant Chief Executive & Chief Finance Officer and her team for the huge amount of time and effort they had put in. Cabinet Members appreciated that they had received very good advice. Cabinet Members recognised that for them this had been a difficult budget with many challenges. The Director for Social & Community Services and the Cabinet Member for Adult Services supported the concerns around the free social care for adults.

RESOLVED:             to:

a)           (in respect of revenue) RECOMMEND Council to approve:

(1) a budget for 2010/11 and a medium term plan to 2014/15, based on the proposals set out by the Leader and Cabinet Member for Finance;

(2)       a budget requirement for 2010/11;

(3)       a precept for 2010/11;

(4)       a council tax for band D equivalent properties;

(5)        the use of unallocated LABGI funding as set out in Annex 5;

(6)        virement arrangements to operate within the approved budget;

(b)       (in respect of treasury management) RECOMMEND Council to approve:

(1)   the Treasury Management Strategy Statement;

(2)       Prudential Indicators from April 2010;

(3)       that in relation to the 2010/11 strategy any further changes required be delegated to the Chief Finance Officer in consultation with the Leader and Cabinet Member for Finance and leaders of the Opposition and Labour group.

(c)           RECOMMEND Council to approve the Minimum Revenue Provision Methodology Statement as set out in paragraphs 10 to 13 of Annex 7.

(d)           (in respect of capital) RECOMMEND Council to approve:

(1)     the updated Capital Strategy and Corporate Asset Management Plan;

(2)    a Capital Programme for 2010/11 to 2014/15;

(3)     Prudential Indicators from April 2010.

(e)   delegate authority to the Leader of the Council, following consultation with the Chief Finance Officer, to make appropriate changes to the proposed budget;

(f)       The Cabinet is recommended to approve a supplementary estimate of £0.475m in respect of Highways Maintenance; and

(g)     given the amended submission date of 29th January 2010, authority to agree the revised Building Schools for the Future (BSF) Readiness to Deliver statement  submission is delegated to the BSF Board.

At this point it was agreed to vary the order of the agenda.