Decision details

To consider the report of the Cabinet Member for Resources and Workforce Planning seeking to set out the latest estimated overall financial position on the General Fund Revenue Budget for 2011/12 to 2012/13 and to outline the main issues that need to be addressed in considering the Cabinet’s budget proposals to Council on 16^th February 2010.

(a)  Note the position on the estimated outturn and revised budget for 2010/11 as set out in paragraphs 5 to 11.

(b)  Approve that the Executive Director for Health & Adult Social Care enter into an agreement with NHS Southampton City (NHSSC) under section 256 of the National Health Act 2006 for a period of two years and three months.  Under the agreement NHSSC will transfer budget to the Council to spend on services that benefit health as directed within the Local Government Finance Settlement announced on 13^th December 2010 and notification from Department of Health on 4^th January in respect of 2010/11.  The sums to be transferred by NHSSC and for inclusion within the Council’s budget are £776,200, £3.1M and £3.0M in 2010/11, 2011/12 and 2012/13 respectively.

(c)  Note the position on the forecast roll forward budget for 2011/12 as set out in paragraphs 13 to 23.

(d)  Note and approve the arrangements made by the Leader, in accordance with the Local Government Act 2000, for the Cabinet Member for Resources and Workforce Planning to have responsibility for financial management and budgetary policies and strategies, and that the Cabinet Member for Resources and Workforce Planning will, in accordance with the Budget & Policy Framework Rules as set out in the Council’s Constitution, be authorised accordingly to finalise the Executive’s proposals in respect of the Budget for 2011/12, in consultation with the Leader, for submission to Full Council on 16^th February 2011.

(e)  Recommends that Full Council:

(i)  Notes the Consultation process that was followed as outlined in Appendix 1.

(ii)  Approves the revised estimate for 2010/11 as set out in Appendix 2.

(iii)  Approves the use of £0.5M of in year under spends to increase the Organisational Development Reserve in 2010/11 to ensure that adequate provision is made for the costs associated with the implementation of staff related savings.

(iv)  Notes the position on the forecast roll forward budget for 2011/12 as set out in paragraphs 13 to 23.

(v)  Approves an additional draw from General Fund Balances of up to £0.5M in 2011/12 if required during the year.

(vi)  Approves the Invest to Save Bids set out in Appendix 3.

(vii)  Approves the revenue pressures and revenue developments as set out in Appendices 4 and 5.

(viii)  Approves the efficiencies, income and service reductions as set out in Appendix 6.

(ix)  Approves the changes to staff terms and conditions set out in Appendix 7.

(x)  Approves the dismissal and re-engagement of staff in order to implement the changes to terms and conditions in the event that a collective agreement cannot be reached with the Unions.

(xi)  Delegates authority to the Chief Executive as Head of Paid Service in consultation with the Chief Financial Officer (CFO) and the Solicitor to the Council to take any steps in connection with amendments to the Terms and Conditions changes, the negotiation of any potential changes with the Unions and any process associated with the implementation of these changes.

(xii)  Delegates authority to the CFO in consultation with the Solicitor to the Council to make changes to the budget for 2011/12 to reflect negotiated changes to the proposals or if a collective agreement cannot be reached with the Unions.

(xiii)  Notes that the Independent Remuneration Panel are currently being convened so that they may review and make recommendations on Members' Allowances to Standards and Governance Committee and thereafter Full Council before September 2011 as required by the law.

(xiv)  Approves the General Fund Revenue Budget as set out in Appendix 8, which assumes a council tax freeze.

(xv)  Delegates authority to the CFO to action all budget changes arising from the approved pressures, bids, efficiencies, income and service reductions and incorporate any other approved amendments into the General Fund estimates.

(xvi)  Notes that after taking these items into account, there is an estimated General Fund balance of £5.1M at the end of 2013/14 as detailed in paragraph 54.

(xvii)  Delegates authority to the CFO, in consultation with the Solicitor to the Council, to do anything necessary to give effect to the recommendations in this report.

(xviii)  Sets the Budget Requirement for 2011/12 at £190,688,500.

(xix)  Notes the estimates of precepts on the Council Tax. collection fund for 2011/12 as set out in Appendix 10.

(xx)  Notes the Medium Term Forecast as set out in Appendix 11.

(xxi)  Authorises the Chief Executive and Chief Officers to pursue the development of the options for efficiencies, income and service reductions as set out in Appendix 6 for the financial years 2012/13 and 2013/14 and continue to develop options to close the remaining projected gaps in those years.

The Constitution requires the Executive to recommend to Council on the 16^th February 2011 its budget proposals for the forthcoming year.  The recommendations contained in this report set out the various elements of the budget that need to be considered and addressed by the Cabinet in preparing the final papers that will be forwarded to Council.

Alternative options for revenue spending form an integral part of the development of the overall Budget Strategy that will be considered at the budget setting meeting on 16^th February 2011.  Alternative options may be drawn up by opposition groups and presented to the same meeting.