Decision details

To report on the initial proposals for the 2012/2013 Capital and Revenue Budgets and Council Plan and refer to the Overview and Scrutiny Committees for consideration.  

Background:

This report set out the Council’s draft capital and revenue budget for 2012/2013. In accordance with the Constitution, the Cabinet was required to develop initial budget proposals and refer these to the Overview and Scrutiny Committees before finalising the budget and setting council tax levels in February 2012.

The draft budget was based on the principles contained in the Medium Term Financial Plan (MTFP) 2012/2015, which had been approved by Cabinet in September 2011, and reflected the formula grant assumptions for 2012/2013  announced during last year’s Comprehensive Spending Review.

It was noted that the initial budget proposals showed a current forecast funding gap of over £6.2 million for General Fund services. Capital budget proposals for 2012/2013 had been confined to a continuation of the existing approved capital programme. Budget proposals incorporating pressures and savings were summarised within the appendices to the report, with pressures summarised in the report.

The report set out details of the main factors and assumptions that would form the basis of the 2012/2013 Housing Revenue Account (HRA) budget. This included details on the reform of the housing finance system and notification that a refresh of the Housing Revenue Account Business Plan would be undertaken.

Reasons:

It is the responsibility of the Cabinet to develop draft budget proposals for consideration by Overview and Scrutiny Committees. These draft proposals are the first stage of the budget consultation process leading to further discussion by Cabinet on 14 February 2012 and formal council tax setting on 23 February 2012.