Issue - decisions

RESOLVED:a) That the attached financial strategy be endorsed, whilst it be noted that:

(i)The revised calculation base for the MTFF currently excludes requests for funding expenditure on Council priorities and service aspirations;

(ii)The initial funding gap (excluding priority and aspirational growth) of £10.484m;

b)That the proposed approach to balancing the budget be formally adopted and the relevant savings targets be noted:

(i)2.5% per service;

(ii)plus 2.5% per director;

(iii)plus a 5% yield on income budgets (including an analysis of the options available to extend the Council’s trading activities);

c)That the proposed response to the Policy Prospectus request for proposals to influence current and future funding decisions at a national level be supported;

d)That the Head of Finance be requested to develop a response to the extant consultation on potential changes to the grant distribution formula with a particular focus on:

(i)Delivering changes to the Area Cost Adjustment for York,

(ii)Ensuring that new arrangements for concessionary fares are funded either as a specific grant or are excluded from formula damping calculations,

(iii)             Opposing the proposed changes to the day visitor funding calculation;

                        e) That the Chief Executive be requested to table proposals for public consultation based on techniques exemplified in paragraphs 22b, c and d of the report.

REASON:a) & b)To enable the commencement of formal budget planning for 2008/09;

c)                  To maximise the Council’s potential influence on national funding policy and decisions;

d)                 To ensure that York’s views are reflected in any final decision on national funding changes;

e)                 To ensure a full consultation exercise takes place.