Agenda item

Councillor Patel submits a report outlining the proposed Departmental Revenue Strategies for the period 2002/03 – 2004/05 and to consider a change to the Education budget approved at Council on 31January 2002. The Cabinet is asked to approve a number of recommendations that include the Corporate Revenue Strategy and each Departmental Revenue Strategy. Other recommendations are included; to address various different issues, in response to public consultation, action for future savings and to request a review of Social Services funding upon the results of a national Government review.

Councillor Patel submitted a report outlining the proposed Departmental Revenue Strategies for the period 2002/03 – 2004/05 and a proposed change to the Education budget approved at Council on 31 January 2002.

Councillor Patel noted this had been a difficult budget to set. In particular he noted the difficulties faced by the Social Services department, which had been highlighted by the Social Services and Personal Health Scrutiny Committee and UNISON. He also noted that the pledge with regard to the Council Tax rise had been kept and the pledge to provide more money for Education had been addressed. In addition, crime and disorder, an issue raised by public consultation as being a priority, was also being addressed. He also noted that two additional sources of funds had been received from the Government but were one-off funds. These would be used partly to make a number of improvements to the City Centre and to address the problems faced by the Social Services Department. He also referred to a proposed new approach to voluntary sector funding on which consultation was being undertaken with Voluntary Action Leicester. He noted that the Cabinet had responded to concerns over concessionary fares and the funding of bus services and with regard to cuts to the book fund, these being proposals made by Directors to Scrutiny Committees in December 2001. He stated the Cabinet would continue to lobby the Government for further funding with regard to persons from abroad.

Councillor Osman referred to the concerns expressed by HITSLINK about its funding and a petition with 500 signatures on this and the ending of SRB funding for another body.

Councillor Kavia responding to concerns regarding the ending of funding to SRB projects stated that these funds were time limited and set up to address specific purposes, and therefore all projects should have exit strategies for when grant money ceased.

With reference to the concerns raised by HITSLINK, Councillor Patel made further reference to the proposed new approach to funding for the voluntary sector which did not mean specific cuts for specific organisations at this stage. Instead of the current banded inflation policy, all organisations funded by the Council would have to go through a process whereby they would be divided into different categories according to how they addressed the priorities of the City Council. No decision had yet been made about any organisation.

Councillor Getliffe thanked his colleagues for recognising the difficulties faced by the Social Services Department.

Councillor Willmott told the meeting he was cautious about the future as some of the funding that was received this year was one-off and could only deal with problems in the short term. He noted there would still be hard decisions to take next year, although he stated he would continue to lobby central Government on the issues where difficulties would continue to be faced.

RESOLVED:

(1)that the results of consultation as described in the supporting information, be noted;

(2)that the Council be recommended to adopt the Corporate Revenue Strategy for 2002/03 to 2004/05, shown at Appendix 2 of the report;

(3)that each Departmental Revenue Strategy, as detailed in the report be recommended to Council for approval;

(4)that the Chief Financial Officer’s view that the budget needed to be very tightly managed in 2002/03, be noted

(5)that an early monitoring report after 3 months of the new year, be submitted to Cabinet;

(6)that Council be recommended to approve that the additional one-off resource from the Council Tax Collection Fund of £1.110m, agreed by Cabinet  on 14 January, be given to Social Services in 2002/03;

(7)that the Local Strategic Partnership be consulted on neighbourhood renewal fund support to complement funding for Education and Social Services in respect of services which benefited deprived communities;

(8)that Council be recommended to approve the one-off “floor” payment of £1m allocated to improvement to the City Centre and other environmental improvements to meet concerns expressed by the public in the Residents’ Survey (such schemes to be held as a corporate budget provision until detailed spending plans were approved by Cabinet);

(9)that Council be recommended to increase the agreed Education budget by £111,900 in 2002/03 only and £11,900 thereafter reflecting: £100,000 one-off funding to support Persons from Abroad in 2002/03; ongoing reductions of £78,900 in respect of savings attributable to Best Value Reviews: additional budget virements of £90,800;

(10) that, subject to approval of the budget by Council on 6 March, Directors be authorised to take action to achieve any savings identified in the strategies for the years 2003/04 and 2004/05;

(11)that the funding of Social Services be reviewed once the outcome of the national government funding review was known;