The Leader of the Council has been invited to deliver a presentation on the Budget and Policy Framework Proposals
Minutes:
The Panel received a presentation by the Leader of the Council on Cabinet’s Budget and Policy Framework proposals for 2009/10.
The Leader reported that he was responsible for co-ordinating the Cabinet’s preparation of draft proposals to amend or update the Council’s Budget and Policy Framework. As portfolio holder for Finance, he was responsible for taking individual cabinet member decisions required within his portfolio and presenting relevant reports to Cabinet and Council.
Members were advised that Cabinet had responsibility as a whole for making proposals to Council, and made proposals each year regarding the Budget and Policy Framework. Cabinet had considered budget proposals at its meeting on 20th January and had made appropriate recommendations, including that for a council tax increase not greater than 4% in 2009/10, but not the actual revenue budget detail for 2009/10, which Council would be requested to approve at its meeting on the 4th March.
It was reported that Cabinet had adopted its revised medium term priorities and related corporate objectives for the immediate future, following review and consultation. The proposals were largely complete, including those in respect of the Corporate Plan, with the exception of developing targets for each corporate priority action. As its base, the draft Corporate Plan used the information from the Leader’s presentation to Cabinet, outcomes from the seven Local Strategic Partnership Thematic Group action plans, an analysis of statutory/discretionary service activity, decisions from Council and from the latest residents’ satisfaction survey.
The Corporate Plan had been divided into four Corporate Priorities with specific objectives. The Council had adopted the Lancaster District Local Strategic Partnership’s Sustainable Community Strategy, which set out a long-term strategic vision for the Lancaster District, focusing on integrating social, economic and environmental issues, and there were opportunities to work regionally with Team Lancashire.
It was reported that significant issues had impacted on the proposals, namely the credit crunch, concessionary travel costs, which were expected to exceed the original budget after taking account of the use of the specific reserve set up last year, and a capitalisation bid had been submitted by the Head of Financial Services. A 3-year revenue budget provision projection had been made showing deficits of £1.7M in 2009/10, which had been reduced to £1.4M, £2.3M in 2010/11 and £2.6M in 2011/12.
Members were advised that, following an efficiency savings exercise, a £150K savings decision had already been taken, and savings options of £250K had been identified. Savings options were still under consideration for statutory and discretionary services of £3.4M and £12.2M respectively, totalling £15.6M.
Following the presentation, the Leader and Officers answered extensive questions from the Panel and stakeholders on the Budget and Policy Framework. Members raised concerns that the presentation did not include sufficient information, and were advised that the situation was different to previous years due to the aforementioned significant issues. Cabinet would consider recommendations at their meeting on 17th February and, until then, no further information was available.
Resolved:
(1) That the Leader be thanked for his presentation and the Budget and Policy Framework proposals noted.
(2) That the following recommendation be made to the Leader of the Council:
That the budget process fully recognises the need to protect the vulnerable and disadvantaged, and those groups most likely to suffer from the credit crunch and recession.