Issue - meetings

This report provides an update on the 2011-12 budget process, with particular emphasis placed on the impacts of the recent Spending Review and an overview of forthcoming plans for the More for York programme.

RESOLVED: (i)         That the current position, and the ongoing work that is being conducted in relation to developing the 2011-12 budget, be noted.

REASON:      So that the 2011-12 budget process can be completed in a timely manner.

                        (ii)        That the use of £13k of approved More for York investment costs in 2010-11 for trade union facility time, as requested by UNISON, be approved, subject to Council approving additional investment costs for trade union facility time over the period 2011-12 and 2012-13.

REASON:      So that the pace of change of the More for York programme can be maintained and savings realised earlier.

[See also under Part B Minutes]

Members considered a report which provided an update on the 2011-12 budget process, with particular emphasis on the impact of the recent Spending Review and an overview of forthcoming plans for the More for York programme.

The key headline from the Spending Review announcement was that local government funding would be reduced on average by 7.1% per annum over a four-year period, with the largest cuts falling in 2011-12.  However the cuts would be reduced for those councils willing to freeze their council tax in 2011-12.  In York, it was estimated that the Council could lose around £6.3m funding in total, reducing to £4.5m if council tax were frozen.  Capital funding to local authorities would also be reduced, by 45%, and interest rates on loans had been increased. 

These funding reductions confirmed the need for the Council to review all services on an ongoing basis and to extend the More for York programme.  Plans for the programme in 2011-12 and beyond were outlined in paragraphs 26 to 35 of the report.  Implications of the spending review on the Council’s 2011-12 budget and the Medium Term Financial Forecast were set out in paragraphs 36 to 44.  Approval was sought to fund increased trades union involvement in the More for York workstreams, in order to achieve earlier savings.

Having noted the comments of the Labour Group Spokespersons on this item, and the comments made by union representatives under Public Participtation / Other Speakers, it was

RESOLVED: (i)         That the current position, and the ongoing work that is being conducted in relation to developing the 2011-12 budget, be noted.

REASON:      So that the 2011-12 budget process can be completed in a timely manner.

                        (ii)        That the use of £13k of approved More for York investment costs in 2010-11 for trade union facility time, as requested by UNISON, be approved, subject to Council approving additional investment costs for trade union facility time over the period 2011-12 and 2012-13. ¹

REASON:      So that the pace of change of the More for York programme can be maintained and savings realised earlier.