Agenda item

Councillor Draycott submits a report requesting the Cabinet’s approval for a provisional three year corporate budget strategy, three year departmental revenue strategies for each department and a general fund budget for 2005/06;and recommends that Cabinet recommend these to Council for approval.

The full revenue budget strategy is attached for Members of the Cabinet only. Copies are also available on the Council’s website at www.cabinet.leicester.gov.uk, in the Members Area or by phoning Committee Services on (0116) 252 7154

Councillor Getliffe declared a personal interest in the report Revenue Budget Strategy 2005/06 to 2007/08 in view of him being a Council tenant. Councillor Draycott also declared a personal interest in the report as a member of her family was a Council tenant.  However under paragraph 10 (d) of the Members’ Code of Conduct, they regarded themselves as not having a prejudicial interest as long as the discussion did not relate to individual tenancies.

Councillor Draycott submitted a report requesting Cabinet to approve a provisional three year corporate budget strategy, three year departmental revenue strategies for each department and a general fund budget for 2005/06. The key elements of the budget were outlined, and it was noted that under the proposals there would be a 4.3% increase in the City’s Council Tax, with the precepts for the Police and Fire Authorities likely to be between 4.5% and 4.955%.

Minute extracts from each of the Scrutiny Committee and the comments from Unison were also circulated. It was noted that there had been no comments from the business sector.

It was noted that Scrutiny Committees had been generally supportive of the proposed budget. With regard to the specific comments made by the Education and Lifelong Learning Scrutiny Committee relating to the proposals to delete the post of an Exclusions Officer, 2 Team Leaders in Early Years and freeze vacancies in the Youth Service, it was noted that these comments had been considered and would now be deleted from the proposed budget.

The Resources and Equal Opportunities Scrutiny Committee had recommended that the proposed funding of broadband for all Members should be deleted, and it was noted that this was now being funded for all Members for one year from alternative funding sources.

It was also reported that Cabinet had acknowledged the views of the Leisure and Environment Scrutiny Committees regarding their proposals to delete the proposals to remove the charges for toilets and the proposals relating to the reinstatement of free charges to the Guildhall but that these proposals would remain in the budget as a previous commitment had been given that charges for these services would be removed. In particular, it was felt that the people of Leicester should be encouraged to access the City’s Museums and charging for this was therefore inappropriate.

Councillor Corrall expressed his concern regarding the potential cost of CCTV cameras on Great Central Way, as a budget had only been provided for one camera which would not cover the whole area. Concern was also expressed regarding the cost of alley gates, and it was agreed that issues around the value for money of the gates should be explored.

Cabinet thanked Officers in Financial Services for their work on the Revenue Budget Strategy, and the Scrutiny Committees for their comments. It was also Cabinet’s view  that the comments of Scrutiny were very important in the process and that their views had been taken on board.

RESOLVED:

(1)That the provisional corporate budget strategy for 2005/06 to 2007/08, the draft departmental revenue strategies prepared by each Corporate Director, and the overall budget for 2005/06 be approved, subject to the following amendments:

·        deletion of the following proposed reductions in Education:

LR5 – freeze vacancies in the Youth Service

LR11 – Exclusions Officer

LR7 – 2 Team Leaders (Early Years)

·        deletion of the following proposed reduction in Regeneration and Culture:

4.4 – Environment Team

and that it be noted that these changes will not affect the proposed tax, but will leave reserves at an estimated £5.2 million and increase the estimated budget gap in 2007/08 from £4.0 million to £4.1 million,

(2)that the Chief Finance Officer be asked to prepare a formal budget and council tax resolution, and consequential prudential indicators, for Council approval,

(3)that subject to the approval of the budget by Council on 23 February and the Council’s normal procedures, Corporate Directors be authorised to take any action necessary to deliver their departmental revenue strategies for 2006/07 and 2007/08,

(4)that it be recommended to Council that the approved budget shall form part of the policy and budget framework of the Council, and that future amendments shall require the approval of full Council, subject to the following:

·        that Cabinet may authorise the addition, deletion or virement of sums within the budget, of up to £5million for a single purpose;

·        flexibilities and permissions provided in finance procedure rules,

(5)for the purposes of (4) above, it be noted that a separate maximum virement amount has already been agreed for the Performing Arts Centre,

(6)that a revised schedule of determinations to the Council’s finance procedure rules as shown at Appendix 6 be approved,

(7)that an increase to the 2004/05 capital programme by £63,000, to fund a programme of improvements to New Walk Museum be approved, to be funded by means of a revenue contribution from underspendings on the current year’s corporate budgets,

(8)that authority be delegated to the Chief Executive, in consultation with the Cabinet Member with responsibility for crime and disorder, to determine and spend the monies set aside in the budget to combat crime and disorder,

(9)that a group of Members be set up to make the City’s case for improved funding from central government when the formulae for grant support are reviewed in the coming months, to produce proposals for balancing the budget in 2007/08 and beyond, and to oversee the Council’s approach to the delivery of efficiency savings,

(10)that as part of the above review (or at a future date), it be agreed to consider the amount of budget growth required for highways maintenance in 2007/08, and

(11)that Council be requested to delegate authority to the Chief Finance Officer to vary components within the Council’s overall borrowing limit (the “authorised limit”) which relate to borrowing and other forms of finance.