Issue - items at meetings - Budget Update and Budget Process 2010/11

Report of the Interim Director of Finance & Resources (copy attached).

1.     That Cabinet notes the resource and expenditure projections for 2010/11 to 2012/13 set out in table 3 in paragraph 3.19.

2.     That Cabinet agrees that the provision for future pay awards becomes a joint provision for both future pay awards and increased pension contributions.

3.     That Cabinet notes the further development of the Value for Money programme set out in paragraphs 3.31 to 3.35.

4.     That Cabinet instructs Directors and relevant Cabinet Members to produce budget strategies to provide their services within the indicative cash limits as set out in appendix 1.

5.     That Cabinet instructs Directors to demonstrate 4% efficiency savings for each year within their budget strategies.

6.     That Cabinet notes the resource projections for the capital investment programme as shown in appendix 2 of this report.

7.     That Cabinet agrees the timetable for budget reports set out in paragraph 3.48.

56.1       The Cabinet considered a report of the Interim Director of Finance & Resources updating Members on the Budget and Budget Process for 2010/11 (for copy see minute book).

56.2       Councillor Mitchell stated that she had expected to see a report on Targeted Budget Management (TBM) for the first quarter of the year; the report on the agenda provided useful background, but did not give a comprehensive picture of the current situation, including any specific pressures and whether departmental budgets were within budget.

56.3       Councillor Young explained that it was too early to provide the TBM report and that if it became apparent that recovery action would be required, it would be reported to the Cabinet in September.

56.4       In response to queries from Councillor Mitchell, the Interim Director of Finance & Resources made the following comments:

§       The council had not yet stepped up any vacancy management process, but would do if it became necessary; any impact of service delivery would be monitored.

§       No formula is used to calculate the percentage change in budgets; they are decided on the basis of political priorities and pressures on directorates, and are kept under review.

56.5       RESOLVED - That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)       That the resource and expenditure projections for 2010/11 to 2012/13 set out in table 3 in paragraph 3.19 be noted.

(2)       That the provision for future pay awards becomes a joint provision for both future pay awards and increased pension contributions.

(3)       That the further development of the Value for Money programme set out in paragraphs 3.31 to 3.35 be noted.

(4)       That Directors and relevant Cabinet Members be instructed to produce budget strategies to provide their services within the indicative cash limits as set out in appendix 1.

(5)       That Directors be instructed to demonstrate 4% efficiency savings for each year within their budget strategies.

(6)       That the resource projections for the capital investment programme as shown in appendix 2 of this report be noted.

(7)       That the timetable for budget reports set out in paragraph 3.48 be agreed.