Issue - meetings

This report presents the Council’s draft Financial Strategy for the period 2007/08 to 2009/10.  It reflects the Secretary of State’s decision to nominate the Council in relation to its Council Tax levels for 2006/07 and 2007/08 and explores options to move to a more strategic approach to meeting future budget pressures and delivering efficiency improvements.

Members considered a report which presented a draft Financial Strategy for the period 2007/08 to 2009/10.  The report reflected the Secretary of State’s decision to nominate the Council in relation to its Council Tax levels for 2006/07-2007/08 and explored options to move to a more strategic approach to meeting future budget pressures and delivering efficiency improvements.  The draft Strategy was attached as an annex to the report.

RESOLVED: (i)         That the Financial Strategy be adopted.

REASON:      To assist in the development of the Council’s medium-term service and financial planning.

                        (ii)        That the Council’s projected financial position for 2007/08 to 2009/10, as outlined in the report (Table 1, paragraph 5) and detailed in the Financial Strategy, be noted.

REASON:      So that Members are fully aware of the financial pressures which the Council currently faces.

                        (iii)       That the Director of Resources, in conjunction with the Corporate Management Team, be required to develop, review and prioritise all currently identified growth and reprioritisation areas against relevant criteria, including statutory pressures, local priorities and comparative performance.

REASON:      To assist Members in targeting resources at those areas which have the greatest need in terms of meeting external requirements, local needs and service improvements.

                        (iv)       That the Director of Resources, in conjunction with the Corporate Management Team, be required to develop a three to five year programme of efficiency reviews.

REASON:      To assist in the development of a more strategic approach to budget setting, especially in terms of identifying areas for service improvement and financial savings.

Members considered a report which presented a draft Financial Strategy for the period 2007/08 to 2009/10.  The report reflected the Secretary of State’s decision to nominate the Council in relation to its Council Tax levels for 2006/07-2007/08 and explored options to move to a more strategic approach to meeting future budget pressures and delivering efficiency improvements.  The draft Strategy was attached as an annex to the report.

The Medium Term Financial Forecast (MTFF) included in the draft Strategy indicated that unavoidable growth pressures would continue to outstrip funding, resulting in a budget gap of between £3.5m and £4.1m across each of the three years.  Chapter 3 of the Strategy identified a number of ways in which the Council could meet these financial pressures, including the development of a programme of strategic efficiency reviews.  The enhanced role envisaged for such a programme was one of the main differences between the first and second finance strategies.  Further details were set out in the report.

Members emphasised that in the current circumstances requests for growth could not be progressed and Directorates must continue to work within existing budgets.  The Council’s long-term strategy was aimed at reducing its standing costs, including reducing building costs via the new City Hall project.  Unless there was a significant change to the funding of local authorities, the Council must continue to maintain provision of good quality public services at the lowest cost per head of population of any council in the country.

RESOLVED: (i)         That the Financial Strategy be adopted.

REASON:      To assist in the development of the Council’s medium-term service and financial planning.

                        (ii)        That the Council’s projected financial position for 2007/08 to 2009/10, as outlined in the report (Table 1, paragraph 5) and detailed in the Financial Strategy, be noted.

REASON:      So that Members are fully aware of the financial pressures which the Council currently faces.

                        (iii)       That the Director of Resources, in conjunction with the Corporate Management Team, be requested to develop, review and prioritise all currently identified growth and reprioritisation areas against relevant criteria, including statutory pressures, local priorities and comparative performance.

REASON:      To assist Members in targeting resources at those areas which have the greatest need in terms of meeting external requirements, local needs and service improvements.

                        (iv)       That the Director of Resources, in conjunction with the Corporate Management Team, be requested to develop a three to five year programme of efficiency reviews.

REASON:      To assist in the development of a more strategic approach to budget setting, especially in terms of identifying areas for service improvement and financial savings.