Issue - meetings

To follow.

This report set out the Council’s draft capital and revenue budget for 2011/2012. In accordance with the Constitution, 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 2011.

The draft budget was based on the principles contained in the Medium Term Financial Plan (MTFP) 2011/2014, which had been approved by Cabinet in September 2010. The report set out details of the influences upon the level of funding and it was noted that the Government’s Spending Review 2010 had not provided the detail to inform the budget setting process.

The initial budget proposals showed a current forecast funding gap of over £21.5 million for both Dedicated Schools Grant and General Fund services. It was noted that the capital budget proposals for 2011/2012 had been confined to a continuation of the existing approved capital programme, as the Government had not yet announced funding allocations to individual authorities. Budget proposals incorporating pressures and current year savings were summarised within the appendices to the report, with major pressures identified in the report.

The report set out details and the main factors/assumptions that would form the basis of the 2011/2012 Housing Revenue Account (HRA) budget. It was noted that until notification of the final Housing Subsidy Determination, the HRA budget process could not be completed. A revised page 13 of the agenda was tabled at the meeting clarifying that a detailed HRA budget report would be presented to the Business Support Overview and Scrutiny Committee on 27 January 2011 and Cabinet on 15 February 2011. Council would set the Housing Revenue Account budget, rents and service charges for 2011/2012 on 24 February 2011. Furthermore, as part of the budget process, there would also be consultation with a Tenants Forum on 9 February 2011.

The Cabinet agreed to accept this report as an urgent item to facilitate the budget consultation process in accordance with the timescales in the Constitution.

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 15 February 2011 and formal council tax setting on 24 February 2011.