Agenda item

(CPT13)

Purpose: To consider and recommend to Council the 2011/12 Revenue Budget.

Resolved that the Executive recommends to Council that:

(1)       the Fees and Charges be approved as set out in Appendices I(a)-(d) and the appropriate statutory notices be placed where required in accordance with the decision of the Executive on 17 February 2011;

(2)       the Special Expenses be approved as set out in Appendices J(a)-(e) in accordance with the decision of the Executive on 17 February 2011;

(3)       a budget requirement for 2011/12 of £111.41 million, requiring a freeze in the Council Tax, be approved.

This decision is not subject to call in as the item is due to be referred to Council for final approval.

The Executive considered a report (Agenda Item 10) advising Members of the Council’s final Formula Grant settlement for 2011/12 received on 31 January 2011 and outlining the revenue budget for 2011/12, including proposals for investment and savings.

Councillor Graham Jones introduced the item and made the following points:

·                    The Council was proposing to freeze Council Tax for the 2011/12 financial year.  This had been achieved by reducing expenditure across the Council, with a focus on maintaining a good level of ‘front line’ service provision and utilising efficiencies at every possibility.  All of this had been achieved when the Council’s funding had been reduced from central government by approximately 8% on a like for like basis, and when there continued to be required investment in services, most notably in Adult Social Care.

·                    The past few months had seen a significant amount of change to how Local Government was financed following the Government’s Comprehensive Spending Review.  As a result of this, the Government had made less money available to local Councils to help deal with the country’s financial deficit.  Though Government had reduced spending, it had at every opportunity given local Councils more flexibility over where money was spent.  Under the previous Government, the Council received a number of specific ring-fenced grants that needed to be spent according to the Government’s priorities.  These had ceased and been replaced with non ring-fenced grants allowing money to be spent on local priorities.

·                    To ensure that Council services had been protected wherever possible, but at the same time maintaining strong financial management, the 2011/12 budget included a proposal to utilise just over half a million pounds from the general reserves.  This would ensure that the Council had adequate time to enact some of its longer term savings, while keeping the general reserve above the minimum level recommended by the Section 151 Officer. 

·                    On the topic of local priorities, the Council had started to utilise the results of the budget simulator exercise completed in late 2010, to help formulate the 2011/12 budget.  The public provided an excellent response rate to the exercise and it gave a clear steer to some of the services the public wished to see more protected than others.  Broadly, the public placed more emphasis on reducing ‘people’ based services less than ‘place’ based services. 

·                    As part of the 2011/12 budget, Adult Social Care would see net investment of over £1m, with Children’s Services see a, proportionally, low level of savings.  At the other end of the spectrum, the Directorate with the largest percentage saving was the Chief Executive Directorate, which included the majority of ‘back-office’ services.  The results of the budget simulator would be used in greater detail for the 2012/13 budget setting process.

·                    The changes alluded to earlier in Local Government finance meant that on the 10 February 2011 the Council received a further allocation of funding from the Home Office of £147k.  This additional non ring-fenced funding would be utilised to reduce the amount of general reserve being used to fund the 2011/12 budget.

·                    In conclusion, the revenue budget 2011/12 contained a significant level of savings, at £8.2m, but also included investment in the Council’s front line services and infrastructure.  The budget maintained the Council’s reputation for strong financial management and enabled the Council to move forward on a strong financial footing into an era of considerable change.

Councillor Alan Law then presented a further positive amendment to the revenue budget 2011/12, in addition to the funding received from the Home Office. 

It had been proposed that the post of Access Officer would be cut following a loss of grant funding.  However, as part of efforts to protect vital services, the savings identified from the loss of this post (£29k) would instead be funded by an increase to the anticipated income from setting planning fees to £279k.  Therefore the post would be retained.  The additional income identified would be achieved by charging the local market rate for planning services. 

Councillor Keith Woodhams suggested that the responsibilities of this post would be made clearer if it was renamed Disabled Access Officer.

Councillor David Rendel commented that the absence of a debate on the budget at the Executive removed the opportunity to ask detailed questions.  He felt it would be timelier to conduct this at the Executive rather than delaying it to full Council which would reduce the value of the debate, thereby excluding the press and public from a more detailed discussion.

In response, Councillor Jones advised that he had informed Councillor Jeff Brooks, Leader of the Opposition, that the budget reports would not be debated at Executive and no concerns had been raised.

Further, there was time for debate in the press and Finance Officers were contactable.  There was also the opportunity for a fuller debate at Council should an alternative option be put forward for the budget if this was received within a realistic timeframe. 

RESOLVED that, with the inclusion of the amendments referred to by Councillor Jones and Councillor Law, the Executive recommends to Council that:

(1)       the Fees and Charges be approved as set out in Appendices I(a)-(d) and the appropriate statutory notices be placed where required in accordance with the decision of the Executive on 17 February 2011;

(2)       the Special Expenses be approved as set out in Appendices J(a)-(e) in accordance with the decision of the Executive on 17 February 2011;

(3)       a budget requirement for 2011/12 of £111.41 million, requiring a freeze in the Council Tax, be approved.

Reason for the decision: Formulation of the 2011/12 Budget is a requirement to meet the Council’s statutory duties.

Other options considered: None.

This decision is not subject to call in as the item is due to be referred to Council for final approval.