Issue - meetings

This report provides an update on the strategy being adopted for the development of the 2010/11 Revenue Budget and outlines longer term issues linked to public sector funding and the implications these may have on the Council’s medium term financial planning.

RESOLVED: (i)         That the principles being adopted for the preparation of the 2010/11 budget be noted, in particular the fact that any additional resources will be used to invest in key priority areas across the Council.

                        (ii)        That it be noted that work is continuing to review the impact of future public spending reductions as part of the ongoing development of the Council’s Medium Term Financial Strategy.

REASON:      To confirm that Executive Members have been properly informed on these matters.

Members considered a report which provided an update on the strategy adopted for the development of the 2010/11 Revenue Budget and outlined longer term issues linked to public information, explaining the implications these might have on the Council’s medium term financial planning.

The key assumptions underpinning the development of the 2010/11 Revenue Budget were:

• A Council Tax increase of 2.9%
• A Formula Grant increase of 2.5%, which was 0.5% below the average increase for unitary authorities
• The cash limiting of departmental budgets, which would need to self fund all non-exceptional budget pressures
• An assumed level of savings gained through the More for York programme
• The reinvestment of such savings into priority areas.  These would include the priorities in the corporate strategy and the areas identified by the budget monitoring process as in need of additional investment within Children’s Social Care, Adult Social Care and Waste Management.

The 2010/11 budget would be the last to be prepared under the current three-year Comprehensive Spending Review (CSR) financial settlement.  A revised three year Medium Term Financial Forecast would be included in the 2010/11 Budget Report.  This would have to display prudent assumptions on any future government funding, in view of the current national economic situation.

Officers at the meeting highlighted the following additional issues in the Chancellor’s pre-Budget report, which would be taken into consideration when preparing the medium term financial plan:

·        The cap on pay settlements

·        The increase in National Insurance contributions.

RESOLVED: (i)         That the principles being adopted for the preparation of the 2010/11 budget be noted, in particular the fact that any additional resources will be used to invest in key priority areas across the Council.

                        (ii)        That it be noted that work is continuing to review the impact of future public spending reductions as part of the ongoing development of the Council’s Medium Term Financial Strategy.

REASON:      To confirm that Executive Members have been properly informed on these matters.