Issue - items at meetings - Budget Update and Directorate Budget Strategies for 2010/11

Report of the Director of Finance & Resources (copy circulated separately).

(1)         That Cabinet notes the latest budget projections and the key budget issues for future years.

(2)         That Cabinet considers and agrees the reserves allocations set out in paragraphs 3.4 and 3.5 of the report.

(3)         That Cabinet notes and agrees the risk provisions set out in table 4 of the report.

(4)         That Cabinet considers and agrees the budget strategies for each service as set out in appendix 1 to the report.

131.1                The Cabinet considered a report of the Director of Finance & Resources detailing latest budget information, including the budget strategies for each service (for copy see minute book).

131.2                The Chairman advised that it was vitally important to protect council tax payers as much as possible, but also to increase investment in priority areas. She added that stories in relation to cuts to services were unhelpful and distressing to service users and their families.

131.3                Councillor Hamilton stated that he looked forward to the full debate at Council in February. He made the following comments:

§         In relation to national indicators, the proposed 2.5% increase in council tax was not in line with the rate of inflation.It would be difficult for the Administration to adhere to previously stated positions.

§         The efficiencies proposed for the Children & Young People’s Trust were too severe; it was difficult to see how they would be met, particularly in relation to home-to-school transport

§         The proposals showed that funding coming in for education services would be diverted to cover other services

§         Proposals to introduce ’systems thinking’ were likely to result in staff cuts

He added that given the pressures evident from the 2010/11 budget, it was clear that circumstances would be more difficult for the following year when the Council would have to make even more savings.

131.4                The Chairman explained that the Administration’s proposals reflected the need for long-term financial planning, which would ultimately improve the Council’s financial stability.

131.5                Councillor Randall accepted that the proposals had to be produced in a difficult economic climate. The Green Group were working on their own proposals, which would focus on protecting frontline services, reducing inequalities to createa fairer city and supporting the orderly transformation of Brighton and Hove in to a low carbon city. He added that he was pleased that there were no plans to close the supported employment facility at Castleham.

131.6                Councillor Brown explained that Children’s Services faced the challenge of making efficiency savings whilst dealing with increasing demands on services. The criteria for home-to-school transport would be reviewed, in addition to procurement for the service. She stated that continuing to protect vulnerable children was the first priority for the directorate.

131.7                Councillor Watkins requested that Members be provided with a copy of the Leader’s 10 priorities as it would make the budget proposals clearer. He also added his concern to the pressure on Children’s Services.

131.8                Councillor Fallon-Khan advised that the Administration was committed to financial responsibility and would not allow the tax payer to suffer. The Council would be driving efficiencies that would result in improvements for both the organisation and the city. Councillor Fallon-Khan thanked officers for their support for the new way of working on budget proposals.

131.9                Councillor Young stated that, despite that change to the economic climate, the Administration had adhered to the promise made when they were elected in relation to keeping the rate of council tax low.

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

(1)         That the latest budget projections and the key budget issues for future years be noted.

(2)         That the reserves allocations set out in paragraphs 3.4 and 3.5 of the report be considered and agreed.

(3)         That the risk provisions set out in table 4 of the report be considered and agreed.

(4)         That the budget strategies for each service as set out in appendix 1 to the report be considered and agreed.