Contact: Jon Pittam, (01962) 847400; jon.pittam@hants.gov.uk

1 Summary

1.1 This report sets out the 2008/09 revenue budget and council tax, within the budget guidelines approved in December 2007 which were based upon the provisional guidelines set in February 2007. The report summarises the changes since then. The 2008/09 budget therefore takes account of subsequent developments and the reports back by the Executive Members. The proposed council tax rise is 4.5% within the Government's capping limit of 5%. The council tax rise is slightly lower than the predicted 4.9% within the guidelines, because the cash increase in Government grant is 2% rather than the projected 0%.

1.2 The report is in three parts:

· this summary decision sheet, containing the detailed recommendations required on the budget and council tax

· the budget report

· the appendices which complete the drill-down to the detail of the budget, as considered by Executive Members for each service

1.3 The following decisions were made, based upon the recommendations from the Leader and Cabinet to the County Council for the 2008/09 budget and council tax that:

1. the revised estimates 2007/08 (Appendix 1) be approved

2. the anticipated underspendings of £5.9m in Table 1 (paragraph 2.13) be carried forward to 2008/09 (up to £4.3m on Adult Services, £980,000 on Environment and £630,000 on Policy and Resources)

3. the additional pressures and growth proposals from Executive Members totalling £23.9m be approved (Table 6, paragraph 4.23 and Appendix 2)

4. the savings and redeployment proposals of £14.5m put forward by Executive Members, be approved (Table 6, paragraphs 4.23 and 4.24 and Appendix 3)

5. cashable efficiency savings of £14.6m in 2008/09 (Table 7, paragraph 5.5 and Appendix 3) be approved

6. the annual review of charges and maximisation of income across services (Table 8, paragraph 6.2) be approved

7. the workforce implications of the proposed budget 2008/09 (Table 9, paragraph 7.2 and Appendix 5) be agreed

8. additional one-off growth of £7.4m be approved (Table 11, paragraph 8.19) including £1.4m Invest to Save contribution for Children's Services in 2008/09 (as a result of the business case to increase foster care rates and to produce savings against the higher longer term costs of independent foster care placements), a £5.5m contribution to a capital reserve, and resources set aside for the Commission on Personalisation, the Senate, Basingstoke Canal and apprentices

9. additional recurring growth of £2.0m be approved (Table 13, paragraph 8.40), including revenue support towards higher capital payments of £11.2m over three years, a contribution of £1.2m to an invest to save and modernisation reserve, and a contingency for further allocation against business cases, including £250,000 for Recreation and Heritage

10. adjustments to reserves as set out in Table 14, paragraph 10.13 and the overall level of reserves (Appendix 6) be approved

11. the estimated level of balances at 31 March 2008 of £14.4m (Table 2, paragraph 2.21) be approved

12. the budget for 2008/09 as summarised in Tables 16 to 20, set out in detail in Appendix 4 and including the adjustments in recommendations 3, 4, 8, 9 and 10, be approved

13. the provisional budgets for 2009/10 and 2010/11 summarised in Tables 23 to 26 be approved, together with provisional council tax rises of 3.5% in each year

14. the treasury management, annual investment strategies, prudential and financial health indicators for 2008/09, as set out in Appendix 8 be approved

15. it be a recommendation to Council that

a) the Treasurer's report under Section 25 of the Local Government Act 2003 be taken into account when the Council determines its budget and precept for 2008/09 (Appendix 9)

b) the revenue budget for 2008/09 (as set out in the attached draft budget book) and the provisional budgets for 2009/10 and 2010/11 be approved

c) the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2008 be £642,680,000

d) the County Council's band D council tax for the year beginning 1 April 2008 be £999.00

e) the County Council's council tax for the year beginning 1 April 2008 for properties in each tax band be:

	£
Band A	666.00
Band B	777.00
Band C	888.00
Band D	999.00
Band E	1221.00
Band F	1443.00
Band G	1665.00
Band H	1998.00

f) precepts be issued totalling £497,062,410.03 on the billing authorities in Hampshire, requiring the payment, in such instalments and on such dates set by them and previously notified to the County Council, in proportion to the taxbase of each billing authority's area as determined by them and as set out below:

Basingstoke and Deane Borough Council	61,753.90
East Hampshire District Council	47,352.44
Eastleigh Borough Council	43,445.08
Fareham Borough Council	42,200.00
Gosport Borough Council	27,432.40
Hart District Council	37,667.80
Havant Borough Council	42,483.00
New Forest District Council	72,101.30
Rushmoor Borough Council	30,928.94
Test Valley Borough Council	45,148.00
Winchester City Council	47,047.11

g) that the annual investment strategy (Appendix 8) be approved

h) the prudential and financial health indicators (annex 3 to Appendix 8) be approved.

2 Reason

2.1 The full County Council must agree the 2008/09 revenue budget and set the council tax for 2008/09 at its meeting on 21 February 2008. The Leader will present his budget speech and recommendations at that meeting. This report provides the background to those budget decisions and presents the recommendations from the Leader and Cabinet to the County Council.

2.2 The County Treasurer under Section 25 of the Local Government Act 2003 is also required to report to the full Council on the:

· robustness of the estimates for 2008/09

· adequacy of the financial reserves in the budget.

2.3 These decisions support the corporate strategy by providing resources for:

· Hampshire safer and more secure for all

· maximising wellbeing

· enhancing our quality of place

2.4 The budget is part of the integrated financial, performance and workforce planning process linked to the corporate strategy, the corporate business plan and the corporate management plan (resources following priorities, improving value for money and increasing capacity). Resources have been allocated as the highest priority for maximising wellbeing towards meeting the needs of the most vulnerable in Adult Services and Children's Services, as well as meeting the necessary commitments from the waste management contract.

3 Other options considered and rejected:

3.1 Other options are not available as far as process and timetable are concerned, but it is expected that the leaders of the opposition parties will wish to present their own recommendations on the budget and council tax to the County Council as amendments to these proposals.

4 Conflicts of interest declared by the decision maker or other Executive member consulted

4.1 Not applicable.

5 Dispensation granted by the Standards Committee

5.1 Not applicable.

6 Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: Date:
Councillor T. K. Thornber CBE - Chairman