Decision details

To consider the report of the Cabinet member for Resources and Workforce Planning, detailing out changes to existing Revenue and Capital budgets.

Cabinet recommends Full Council to:

(i)  Note the key issues outlined in Appendix 1 arising from the Budget on 22^nd June that will have an impact on Local Government.

(ii)  Note the high level forecast for the General Fund for the next three years contained in Appendix 2

(iii)  Note the cuts in Government grant for 2010/11 detailed in Appendix 3.

(iv)  Approve the reductions in budget for 2010/11 in Appendix 4 in response to the cut in Government grant.

(v)  Note the actions that are being taken to manage the in year cuts in grant outlined in paragraphs 21 to 25.

(vi)  Approve an additional draw from General Fund Balances of up to £1M in 2010/11 if required during the year.

(vii)  Approve the efficiencies, income generation proposals and service reductions as set out in Appendix 5, subject to recommendation (viii).

(viii)  Note that prior to a final decision being made regarding grant reductions and new income generation referred to in Appendix 5, formal consultation with affected people and organisations be commenced as soon as possible and to note that the implementation of these savings is subject to the outcome of consultation with affected parties.

(ix)  Delegate authority to the Executive Director of Resources following consultation with the Solicitor to the Council and the Cabinet Member for Resources and Workforce Planning to make any further changes to budgets during 2010/11 in response to the cuts in Government grants, subject to these being reported to Council at a later date.

(i)  The current medium term financial forecast highlights the challenges facing the Authority.  This combined with the potential impact of reductions in future funding levels for Local Government and a further worsening economic position make it imperative that proposals for 2011/12 onwards are developed and savings achieved as early as possible.

(ii)  The recommendations have been put forward to ensure that the operating budget for 2010/11 remains in balance and reflects the priorities of the Executive and to ensure that proposals are advanced as early as possible as part of the budget process for 2011/12.

The option to not consider changes to existing revenue budgets is not compatible with the need to ensure effective and robust financial planning given the financial challenges facing the Authority.  There are almost limitless options that can be applied to budget changes in the year most of which are driven by political priorities.  In formulating the final options to present in this paper the Executive have taken into account the relevant impact of all options that were under consideration and as a result some have not been progressed.