Agenda item

Councillor Patel submits a report that requests Cabinet approval for a 3 year corporate budget strategy, commissioning strategies for each priority board, and a general fund budget for 2010/11. Cabinet is asked to approve the recommendations set out in Paragraph 3 of the report.

The appendices to the report and the Commissioning Statements are attached for Cabinet Members only, but are available on the Council’s website at www.cabinet.leicester.gov.uk and at Customer Services in New Walk Centre.

A minute extract from the meeting of the Overview and Scrutiny Management Board held 4 February 2010 will be circulated as soon as it is available.

Councillor Patel submitted a report that requested Cabinet approval for a 3 year corporate budget strategy, commissioning strategies for each priority board, and a general fund budget for 2010/11.

Councillor Patel reported on amendments and areas of further growth that had been added in response to comments made during the consultation process, and asked Members to approve the recommendations as amended. He also pointed out that the strategy allowed for a low Council Tax increase and delivered on key aims of the Labour Group manifesto.

He noted that as part of the consultation process, overall, response to the proposals had been positive. Broad support had been received from the schools’ forum and from NHS Leicester, and the proposals from NHS Leicester to work closely with them to align work on delivering efficiencies as much as possible was accepted.  The Chief Finance Officer was to meet with his counter-part at the NHS to pursue this further.  

Councillor Patel also stated that public comments emphasised anti-social behaviour as an issue, and how partnership working was necessary; it was actively being looked at by the LSP and the restructuring of the Community Safety Partnership would support improvement. Work was underway to share data and intelligence better. He felt that budgeted growth for youth in general and Myplace in particular would be very positive. Work was also being done on new approaches and investment on outer estates to better prevent problems through supporting neighbourhoods.

Councillor Patel noted that a number of consultees had commented about the significant efficiency plan in the budget. Views made on controlling consultancy costs were endorsed and mechanisms were in place to give more oversight of this expenditure. He also noted concerns raised by Unison and he would write to them with a full response. He stated that he was pleased with the way the new process had worked as a whole, but agreed to consider consultees’ comments about the style of the new commissioning statements in time for next year’s budget process.

Particular issues raised during the scrutiny process were discussed by relevant Cabinet Leads. Councillor Kitterick pointed out that concerns about bus fares were out of the control of the Council. Councillor Palmer raised concerns about current debate regarding free personal care being used for political purposes rather than being considered in the best interests of vulnerable people.

Councillor Grant queried the rationale of a 1.94% Council Tax increase followed by a proposed 2.94% increase, and expressed concern regarding the approach to risk management and efficiencies, stating that the considerable challenge in year three presented a risk. With regard to the Council Tax increase, it was reported that the low increase in 2010/11 was due to the current economic climate and level of inflation. Future years’ tax proposals were indicative only. The third year efficiencies were part of the three year planning in order for these to be built in up to that period.

RESOLVED:

            that Cabinet, having considered the draft 3 year financial strategy for 2010/11 to 2012/13, the draft commissioning statements prepared by each strategic director, and the draft overall budget for 2010/11 as described in the report:

1)     asks the Chief Finance Officer to prepare a formal budget and council tax resolution, and consequent prudential indicators, for Council approval;

2)     thanks scrutiny committees and other consultees for their comments, and after taking note of these to agree that the budget proposals in this report be submitted to Council subject to the amendments listed in the table below; and to ask the Chief Finance Officer to prepare a formal budget and council tax resolution, and consequential prudential indicators, for Council approval;

3)     recommends to the 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:

·        the Cabinet may authorise the addition, deletion or virement of sums within the budget up to a maximum amount of £2m (either one-off or per annum) for a single purpose;

·        the Cabinet may determine the use of £3m pa held for the central accommodation review;

·        the Cabinet may determine the use of corporate budget provisions and monies held for job evaluation;

4)     recommends to Council that the Chief Finance Officer be authorised to calculate and give effect to the following budget adjustments, for which provision is presently held corporately:

·        savings arising from the ODI transformation plan;

5)     notes the proposals in respect of HR policies at section 7 of this report, and the intention to save £1m over and above the 2010/11 budget through managed reductions in working hours and restricted recruitment;

6)     requests PVFM Select Committee to monitor achievement of the £1m savings described above;

7)     to recommend to Council that no inflationary uplift be provided to third parties, except where:

·        contractual terms provide otherwise;

·        in the view of the relevant divisional director, an uplift is required to stabilise a fragile market;

8)     approves an increase of £60,000 in the 2009/10 budget to fund costs of the proposed pensioners’ passport, to be met from reserves;

9)     approves the creation of an earmarked reserve for potential redundancies arising from later phases of the Organisational Development and Improvement Programme, and the transfer of £1m from corporate reserves to this reserve;

10)approves the transfer of £1.5m from the insurance fund to general reserves, this sum being no longer required to meet future insurance liabilities;

11)approves, and recommends Council to approve, the treasury strategy included as Appendix 6 and the investment strategy included at Appendix 7 to this report;

12)requests Council 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;

13)recommends that Council approves the proposed policy on minimum revenue provision described in section 22 of the report;

14)recommends that Council approves the controllable budget lines at Appendix 8 to this report, being sub-divisions of the budget to which the Council’s virement rules apply (ie discretion to move funds between budget lines is limited).