Decision details

That Cabinet notes:

1.    The financial pressures in the current financial year and the continuing work by CMT to deliver a balanced budget; and

2.    The forecast budget gap for the financial year 2016/17 and onwards, the key assumptions currently included in the MTFS forecast, and the significant uncertainty surrounding next and future years’ government funding for local authorities.

That Cabinet recommends to Council:

1.   Approval of amendments to the ‘Budget Framework Procedure Rules’ to follow a two stage budget process as set out in section 7 of this report.

The Cabinet is responsible for initiating Budget Proposals within the Council’s Budget & Policy Framework Procedure Rules. The proposed approach and timetable for the 2016/17 budget setting process contained within this report varies from that contained within the Procedure Rules and Cabinet is being asked to put forward this alternative, two stage process, for Council approval. The two stage process was used last year and was successful in enabling the Council to set a lawful and balanced budget.  Another benefit of the two stage approach is that the early agreement of Phase 1 budget proposals in the December before the start of the new financial year gives Departments more time to implement these proposals, some of which may require long lead in times to achieve successful implementation.

No alternative option has been considered as the Cabinet is responsible under the Constitution for initiating Budget Proposals and the Council is statutorily obliged to set a lawful and balanced budget by 11^th March annually.

Council Constitution – Part 3, Section 3 – Executive Functions – Executive Delegations

Council Constitution – Part 4, Section 6 – Budget and Policy Framework Procedure Rules

Local Government Association, ‘Future Funding outlook for councils 2019/20’, Interim 2015 Update