Issue - meetings

This report provides an update on the 2011-12 budget process, with emphasis on the latest information available regarding funding and how this might affect the Council’s provisional grant settlement, which is scheduled to be announced during December

RESOLVED: That the current position, and the ongoing work 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.

Members considered a report which provided an update on the 2011-12 budget process, with emphasis on the latest information available regarding funding and how this might affect the Council’s provisional grant settlement, due to be announced during December.

The latest information on the government’s Spending Review indicated that:

• At least 22 grants, previously delivered as Specific or ABG, would be rolled into Formula Grant in 2011-12;
• A further 38 Specific / ABG grants could be perceived as ‘at risk’, having had no announcement on their continuity or delivery;
• Grants feeding into the refined Dedicated Schools Grant and Early Intervention Grant were still to be announced.

It was considered likely that the government would give some protection to those councils which currently received a high proportion of their funding from Formula Grant, at the expense of those (like York) which did not.  York should therefore be prepared for a funding reduction of around 15%, or £8.2m, instead of the 10.7% previously announced.  Officers were working to identify mitigation strategies and options to address this.  Representations had already been made to Central Government in order to fight York’s cause, and work was continuing via the More for York programme to ensure the production of a balanced budget in February 2011.

Officers provided an update at the meeting following the announcement the previous day of the actual grant reductions, which for York would amount to 13.3% in 2011-12.

Having noted the comments of the Labour Group Spokespersons on this item, it was

RESOLVED: That the current position, and the ongoing work 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.