Agenda item

Please note that that the weblink set out in paragraph 15.3 of this report should read:

http://www.medway.gov.uk/jobsandcareers/careersadvice/equalopportunities/diversityimpactassessments.aspx

Background:

This report presented proposals for the capital and revenue budgets for 2011/2012. The report included the proposed Housing Revenue Account budget and associated capital programme for 2011/2012, including increases in rent and service charges from April 2011.

The Cabinet had considered initial budget proposals on 30 November 2010, which had been developed in accordance with the principles set out in the Medium Term Financial Plan 2011/2014. The implications of both the Comprehensive Spending Review 2010 and Local Government Finance Settlement were set out in the report, together with proposed measures to address the £23.5 million shortfall arising as a consequence of the 11.9% cut in government funding.

The report gave details of the changes made since the Financial Settlement was reported to Cabinet in December 2010, summarised the budget build and gave details of the directorate savings proposals. A revised Appendix 3A setting out the Children’s and Adults budget build had been circulated to Members in advance of the meeting.

It was noted that the proposed capital programme for 2011/2012 and future years, incorporating existing schemes and new funding announcements to date, was approaching £66.1 million. The net revenue budget for 2011/2012 amounted to £411.2 million, which it was reported would not require an increase in Council Tax but was predicated upon receipt of Government grant that equated to an equivalent 2.5% increase.

The report set out details of the Council Plan, which had been developed alongside the budget setting process to ensure the link between resource and business planning was maintained. This was considered as a separate item on the agenda.

Budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views were detailed in the report, with the recommendations of the Business Support Overview and Scrutiny Committee set out for Cabinet consideration.

Appendix 5 to the report summarised the Housing Revenue Account. It was noted that the budget proposals included an average rent increase of £3.63 per week (based on 50 collection weeks) in line with Government guidelines, an increase in garage rents of 4.6% and an increase in service charges to ensure that costs can be fully recovered by 2014/2015.

The schedule of fees and charges was attached at Appendix 6 to the report and a revised page 58 of the booklet relating to Housing Solutions fees was tabled at the meeting.

The report set out the requirements under equality legislation and a diversity impact assessment, that aggregated the impact of reductions in funding to services, was attached at Appendix 7 to the report. The report included an overview of where proposals had been identified as having a possible impact and it was reported that to mitigate against any further unintentional and unidentified impact, monitoring would continue and if necessary be reported through quarterly monitoring. A revised weblink to individual diversity impact assessments (as set out at paragraph 15.3 of the report) had been circulated to Members prior to the meeting.

The Cabinet agreed to consider this report as an urgent item to enable its recommendations to be forwarded to the Budget Council meeting on 24 February 2011.

Reasons:

The Constitution requires that Cabinet’s budget proposals must be forwarded to Council for consideration and approval.

The Council is required by statute to set a budget and council tax levels by 11 March each year.