Agenda item

-        Strategic Director of Finance to report.

Councillor Wyatt, Cabinet Member for Resources and Commissioning, introduced a report by the Strategic Director of Finance, which proposed the Budget for 2011/12 based on the outcome of the Council’s Financial Settlement with details of:-

·              The progress of the Budget process since July, 2010 (including confirmation of the Local Government Financial Settlement).

·              The principles reflected in the Budget and spending plans.

·              The Council’s recommended Revenue Budget for 2011/12.

·              Spending plans for Directorates.

·              Precepts and levies made on the Council by other authorities.

·              Proposed Council Tax levels for the coming financial year.

·              Proposed future developments in the three year Medium Term Financial Strategy (MTFS) 2011/12 to 2013/14. 

As required by legislation, the report also set out the Strategic Director of Finance’s assessment of the robustness of the estimates included within the Budget and the adequacy of the reserves for which the Budget provided.

By adopting a calm and measured approach and planning ahead it was possible for the Council to protect services for those most in need. Within the Budget, provision was made to:-

·              Ensure that safeguarding of children was a top priority through the provision of improved services for children in care and with Special Educational Needs,

·              Support vulnerable families and individuals,

·              Increase investment in preventative services and early intervention,

·              Reduce the time taken to provide new packages of care and supply equipment, assistive technologies and adaptations to safeguard adults when their life circumstances changed,

·              Transform youth provision for all young people,

·              Protect vital tendered bus services across the borough,

·              Continue to help new business start ups and stimulate the local economy,

·              Protect funding for voluntary and community sector and advice services,

·              Help Rotherham Credit Unions continue to provide financial support to residents who were in danger of being made homeless because of the economic downturn, and

·              Continue to invest in infrastructure across the Borough – £3m in new road network improvements, building in total 132 new affordable social housing, regeneration of the town centre and improve customer services.

The Budget, as outlined in the report, would:-

·              Protect funding helping to provide vital services for those most in need in our community.

·              Reduce management and administration and back office costs as far as possible.

·              Enable the Council to focus on the next three to four years to ensure that services continued to be equipped to deliver a high standard that was fully aligned to the Community Strategy and Corporate Plan priorities and objectives. This year, the Budget provided investments in the following local key priorities:-

Ø            The provision within the Budget of a £2m Fund that will allow the Council to invest in preventative and early intervention initiatives that would address issues at the earliest opportunity, thereby improving the quality of service provision and also allowing the Council to realise savings by addressing problems in the most cost effective way.

Ø            £0.177m had been provided to allow the continued investment in the South Yorkshire Safety Camera Partnership, with the aim of making roads even safer than at present.

Ø            The availability of a Contingency Fund of £0.600m to address Budget pressures should they arise and to mitigate potential risks within the Council’s financial plans.

The proposals for the 2011/12 Budget and Council Tax contained within the report were put forward having regard to several factors.  These were:-

·              That the assumptions about the level of resources and reserves available to support the 2011/12 Revenue Budget were sound. The two-year Grant Settlement had again allowed a greater degree of certainty in preparing resource projections for 2011/12.

·              That the service plans upon which the Budget was predicated would be actioned by elected Members and officers, as appropriate, and that this would be done having full and proper regard for the Council’s financial position. The prospects for this were good.

·              That through the ongoing rigorous programme of reviews, other scrutiny and strategic planning processes the Council would ensure the sustainability of its annual Budget and other financial plans. Again the prospects were good.

This report, therefore, recommended:-

·              The Council Tax to remain at £1,230.03 at Band D (i.e. no increase on the 2010/11 level),

·              A General Fund Revenue Budget for Rotherham Council in 2011/12 of £219.622m.

For information, the following general assumptions with respect to inflation have been provided for within the Budget:-

·              A nil % increase in staff pay, although actual pay increases were still subject to negotiation, but at present the Local Government Employers’ organisation was not proposing to offer a pay award for 2011/12.

·              A general inflation rate of nil %, and where known in relation to specific items of expenditure, a specific provision for inflation if significantly different.  In line with Council policy, it was expected that all such pressures would be contained within Directorate Cash Limit budgets. 

Recommended:-  (1) That a General Fund Revenue Budget for 2011/12 of £219.622 million be approved and allocated to services as set out in this report.

(2)  That there be no increase in the Council Tax in respect of this Council’s own Budget giving an annual Band D Council Tax of £1,230.03.

(3)  That the comments of the Strategic Director of Finance, provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provided be noted and adopted.

(4)  That the precept figures from South Yorkshire Police Authority, South Yorkshire Fire and Civil Defence Authority and the various Parish Councils and Parish Meetings be incorporated, when known, into the recommendations to the Council on 2^nd March, 2011.