Decision details

To receive details of the council's projected financial position for 2008/09 to 2010/11. This report provides the context in which the 2008/09 budget will be set and the medium term financial position until 2011. As part of this process the report will provide recommendations relating the review report on future grant funding and clarify a number of key financial policy areas.

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.