Issue - items at meetings - Budget Update and Budget Process 2012/13

Report of the Director of Finance (copy attached).

(1)         That Cabinet notes the resource and expenditure projections for 2012/13 to 2014/15 set out in table 3, paragraph 3.27.

(2)         That Cabinet instruct Directors and relevant Cabinet Members to produce options for working within a budget allocation over the next 2 years of -5%, -10% and -15% based on their 2011/12 adjusted budget as exemplified in appendix 1.

(3)         That Cabinet notes the resource projections for the capital investment programme as shown in appendix 2.

(4)         That Cabinet agrees the timetable for budget reports set out in paragraph 3.52.

37.1         The Cabinet considered a report of the Director of Finance concerning the process for preparing the 2012/13 budget and the basis and principles on which it would be planned.

37.2         The Chair explained that a broader and more transparent approach to consultation and engagement in the budget process would be adopted, offering trade unions, the community and voluntary sector and the other political parties the opportunity to have a say in setting the budget priorities.

37.3         Councillor J Kitcat reported that the intention was set Council Tax at 3.5% and that equalities and sustainability issues would be highlighted during the budget process.

37.4         Councillor A Norman noted the early announcement of the intention to increase Council Tax and stated that more work on potential savings should have been undertaken before such a decision was made.

37.5         Councillor J Kitcat advised that a figure was required in order to enable financial modelling to commence, but that the final decision on the level of Council Tax would be taken by the Full Council. He added that the proposed increase was reasonable as it would below the rate of inflation.

37.6         In response to questions from Councillor Mitchell, the Director of Finance made the following comments:

§         Changes to Council Tax subsidy would begin in 2013-14 and were reflected in the pressure projections, but not within the text of the report.

§         The decision had been taken to account for the incremental drift pressure from Single within services’ allocated budgets. The Single Status Reserve had been considered sufficient and was currently being reviewed.

§         Any changes resulting from the Localism Bill would need to be considered and any costs determined and built in to the budget.

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

(1)         That Cabinet notes the resource and expenditure projections for 2012/13 to 2014/15 set out in table 3, paragraph 3.27.

(2)         That Cabinet instruct Directors and relevant Cabinet Members to produce options for working within a budget allocation over the next 2 years of -5%, -10% and -15% based on their 2011/12 adjusted budget as exemplified in appendix 1.

(3)         That Cabinet notes the resource projections for the capital investment programme as shown in appendix 2.

(4)         That Cabinet agrees the timetable for budget reports set out in paragraph 3.52.