Decision details

This report reviews the major financial issues facing the Council in this and the next three years. It also provides a framework for the more detailed preparation of the draft Revenue Budget for 2011/2012 and the Council Plan.

This report set out the major financial issues facing the Council over the next three years. It was noted that the future budget requirement, incorporating investment in meeting strategic objectives allied with demographic change would exceed available resources, even without the threat of significant reductions in government support. The detail of the government funding would be announced on 20 October 2010 and Medway would be informed of its grant by the end of November/early December.  

The report set out the assessment of likely available resources. This would be determined by the support from Central Government through formula grant, area based grant and dedicated schools grant, and also the amount raised locally by council tax.

The report provided details of the Council’s spending priorities across the Council’s directorates and it was noted that there was a proposal to freeze employees’ progression on the Council’s incremental scales.

The report provided details of the Council’s Value for Money Strategy and appendix 1 to the report set out progress against its objectives.

The report also set out the timetable for the development of the draft budget setting proposals and it was noted that business and service planning would run concurrently leading to the development of the Council Plan.

Reasons:

This is a preparatory document to meet the budget process and timetable set out within the constitution.