Decision details

Received a report from the Cabinet Member for Finance, Revenues and Benefits on the proposed budgetary framework for 2011/12 incorporating the following:-

• The three-year Council Plan;
• The Medium Term Financial Strategy (MTFS) and a two-year summary level financial model for the Council,
• The four-year Capital Investment Programme,
• The detailed annual revenue estimates for 2010/11 and 2011/12; and
• The proposed level of Council Tax for 2011/12

The Cabinet Member confirmed that the Council is facing a reduction of approximately £20m in its resources over the next two years.  To this end, a range of savings options are proposed for 2011/12 to address the immediate budget gap and the MTFS also identifies detailed savings options for 2012/13 and 2013/14.  The Cabinet Member explained that difficult decisions have had to be made to ensure that a robust budget is set which protects core services and provides value for money to local residents, while also achieving, for the third consecutive year, a freeze to Council Tax levels for residents.

The proposed Capital Investment Programme similarly focuses the limited capital resources on the Council’s priorities, the principle schemes being the school expansion and improvement programme, Housing Futures and Council House New Build projects.

It was also noted that some assumptions have been made in the estimates for 2011/12 as not all Government grant allocations have been confirmed at this point in time, and therefore the final report to the Assembly on 23 February 2011 may include some updated information.

Agreed, in order to assist the Council to achieve all of its Community Priorities through the setting of a prudent budget and Council Tax, to:-

(i)  Recommend the Assembly to approve:

(a)  The Council Plan “Building a Better Life for All” as set out at Appendices A and B to the report;

(b)  The Medium Term Financial Strategy for 2011/12 - 2013/14 as set out at Appendices C and D to the report;

(c)  The Capital Investment Programme for 2010/11 - 2014/15 as set out at Appendix G to the report;

(d)  The savings summary for 2010/11 - 2013/14, revised budget for 2010/11 and base budget for 2011/12 as set out at Appendices E, J and K to the report;

(e)  The position on reserves as set out in paragraph 2.7 of the report;

(f)  The Council’s Prudential Indicators as set out in Appendix H to the report.

(g)  A freeze in Council Tax levels for 2011/12, for the third year in succession, as set out at Appendices L and M to the report (subject to the final precept announcement for the Greater London Authority);

(ii)  Authorise the Corporate Director of Finance and Resources, in consultation with the Cabinet Member for Finance, Revenues and Benefits and subject to further reports to the Cabinet on the detail of the proposals, to:

(a)  allocate initial savings targets across all services for the 2012/13 budget process, to commence in April 2011;

(b)  allocate Invest to Save Funds to support departments in achieving savings following receipt and acceptance of a robust business case

(iii)  Note the current capital accounting arrangements and Prudential Indicator capital guidelines as set out in section 3 of the report; and

(iv)  Note the continuing need to identify relevant efficiency gains throughout the organisation.