Agenda item

Councillor Patel submits a report asking the Cabinet to consider a proposed Corporate Revenue Strategy; and a proposed Departmental Revenue Strategy (DRS) for each department up to 2005/06, as recommended by the relevant Cabinet Lead Member.

The relevant minute extracts from Scrutiny Committees where they considered Departmental Revenue Strategies relevant to their portfolios are attached to the report. Further comments from Scrutiny Committees will be circulated when they are available.

Copies of the full revenue strategy have been attached for Members of the Cabinet only. Copies of this document can be obtained from the Council’s website http://www.cabinet.leicester.gov.uk/ or by phoning Committee Services on (0116) 252 6022.

Councillor Patel submitted a report asking the Cabinet to consider a proposed Corporate Revenue Strategy and a proposed Departmental Revenue Strategy for each department up to 2005/06, as recommended by the relevant Cabinet Lead Member.

Further to the report which included the comments of Scrutiny Committees, the minutes of the Education and Lifelong Learning Scrutiny Committee on 17 February 2003 and the Finance, Resources and Equal Opportunities Scrutiny Committee on 19 February 2003, were circulated to the Cabinet, as both of these Committees had met since the Cabinet report was produced.

Councillor Patel referred to the comments made by the Finance, Resources and Equal Opportunities Scrutiny Committee on 19 February 2003. He shared their concerns about the 10% increase in Police precept for the forthcoming year. He stated the Councillor Draycott had been involved in negotiations to ensure that the lowest of three options was followed. He also noted the comments made about the funding of the Revitalising Neighbourhoods project. He felt there were robust financial systems in place which he had stated on previous occasions. He also agreed with the Committee that the level of the Council’s insurance fund needed to be monitored.

Councillor Roberts noted there were favourable comments from the Education and Lifelong Learning Scrutiny Committee on 17 February 2003 who gave their support to the proposed Education and Lifelong Learning Departmental budget.

Councillor Willmott welcomed the comments of the Scrutiny Committees and the productive consultation process.

RESOLVED:

(1)that the following be recommended to Council:-

(i) the proposed new Corporate Revenue Strategy up to 2005/06, attached at Appendix 1 to the report,

(ii) the Departmental Revenue Strategies proposed by Cabinet Lead Members, shown at Appendix 2 to the report,

(iii)the proposed one off support to Social Care and Health of £1.1m, to be funded from the Council Tax Collection Fund Surplus of £1.1m which was agreed by Council on 30 January 2003,

(iv)additional spending on Crime and Disorder of £71,400 per annum from 2003/04, on schemes identified in the supporting information of the report,

(v)the utilisation of £1.8m of general fund reserves, reducing the estimated balance of reserves to £4.4m as at 1 April 2003, such reserves being required to fund the proposed departmental revenue strategies,

(vi)the proposed repayment of £0.3m to general reserves from future savings made by Cultural Services and Neighbourhood Renewal, with at least £0.1m per annum to be repaid each year from 2004/05 to 2006/07,

(vii)a revised schedule of determinations under Financial Procedure Rules, at Appendix 3 (which reflects changes in departmental responsibilities), be approved;

(2)to note that the budget involves use of reserves, taking them to a level of £4.4m, which is below the Chief Finance Officer’s recommended minimum working balance;

(3)to note that by the time of the budget’s approval by Council, it is expected that the arbitrator will have assessed the Council’s entitlement to compensation in respect of the Swan Bridge claim and to the extent that damages received are less than the £1.5m of expenditure which is unfunded, the difference would reduce reserves further;

(4)that Corporate Directors be authorised to take any action necessary to achieve budget proposals for 2004/05 and 2005/06, subject to the approval of the budget by Council on 5 March;

(5)to agree that it will increase its contribution to the Fire Authority, subject to approval of Council on 5^th March, if this is necessary because of increased pay costs which cannot be offset by modernisation savings; and

(6)to request the Director of Social Care and Health to report in April with a detailed plan demonstrating how the department can achieve long term budget sustainability.