Agenda item

Cabinet considered the draft budget proposals for 2010-11 through to 2014-15. For the first time, in response to the challenging financial environment, the Council’s Medium Term Financial Plan (MTFP) was based on a 5 year plan. The new Medium Term Financial Plan proposed council tax increases of 2.5% each year; in line with the previous Medium Term Financial Plan.

The Cabinet Member for Education, Skills and University advised that money would be put into raising educational standards, into delivering the university and to addressing the shortage of school places in particular areas of the city. In addition there would be investment to address the problem of young people who were not in work, education or training.

Members discussed the issue of £4million which had been kept back by central Government to help support local authorities in poorer areas of the country. Councillor Sandford addressed the Cabinet and commented on savings that should have been realised through changes to the staff car parking scheme, on the borrowing requirements of the authority to fund its Capital Programme and on the proposals to realign public bus services.

The Cabinet Member for Resources responded to the issues raised by Councillor Sandford, stating that huge savings had been made from projects other than the car parking scheme changes and that the Capital projects proposed were necessary for the future of the city. 

CABINET RESOLVED TO:

          Agree the following as the basis for consultation: 

a)                        That the Medium Term Financial Plan (MTFP) be set in the context of the community strategy (MTFP section 1).

b)            The Budget monitoring report for October as the first draft of a probable outturn position for 2009/10.

c)                         The draft revenue budget for 2010/11 and indicative figures for 2011/12 to 2014/15 (including capacity and savings proposals).

d)                        The draft capital programme for 2010/11 to 2014/15, associated capital strategy, treasury strategy and asset management plan.

e)                        The draft Medium Term Financial Plan for 2010/11 to 2014/15.

f)                           The proposed council tax increase of 2.5% for 2010/11 and indicative increases of 2.5% for 2011/12 to 2014/15.

g)                        To spend at the level of the Dedicated Schools Grant for 2010/11 to 2014/15.

h)                         The proposals for reserves and balances.

i)               The draft Annual Accountability Agreement with the Primary Care Trust for 2010/11.

j)                           The challenging financial position in future years, and the need to start planning early for meeting the financial deficits indicated in the later years of the MTFP.

k)             The financial arrangements for neighbourhood councils

REASONS

1. The Council was required to set a lawful and balanced budget.

2. The Council was required to set a Council Tax for 2010/11 within statutory prescribed timescales.

            3. Before setting the level of Council Tax, the Council must have agreed a balanced    budget.

ALTERNATIVE OPTIONS

Alternative levels of Council Tax increase and areas for growth/savings could have been considered but this should be seen in the context of the Corporate Plan and other constraints. Each 0.1% change (increase or decrease) was equivalent to approximately £61,000.