Contact: Paul Carey-Kent, ext 7525

1. Summary

1.1 At its last meeting this committee requested an opportunity to consider and comment on both of the County Council's overall budget strategy and the specific proposals for Policy and Resources (attached as a separate paper). All County Council members were advised of and given electronic access to the two papers on this subject considered by the Cabinet at its meeting on 15 December 2003. They are attached for ease of reference as appendices to this report.

1.2 The Cabinet considered the report of the County Treasurer on the provisional local government finance settlement and its implications for the 2004/05 budget, together with the proposed budget guidelines for consideration by Executive Members and Policy Review Committees during January 2004. The County Treasurer also circulated the attached supplementary paper following the recent announcement by the Chancellor of the Exchequer that an extra £340m would be added to the provisional local government finance settlement, 2004/05.

1.3 The £340m addition to the provisional local government finance settlement would result in a £7.5m increase in grant to the County Council which would in turn reduce the projected council tax increase from 6.7% to 4.7%. Whilst the additional monies were regarded as a welcome respite, there were Cabinet concerns that this might only be a one-off addition, and not to be repeated in subsequent years.

1.4 A the conclusion of a full discussion, the Cabinet adopted the recommendations set out in the report of the County Treasurer with the exception of the original recommendations 11,12 and 13; in these cases, the commissioning of a further MORI telephone survey, the reconvening of the community workshop and meeting again with groups previously consulted were regarded as unnecessary having regard to the extensive nature of the consultations already carried out and the respite now provided by additional grant.

Recommendation

That Members consider the budget guidelines and make any comments on them for consideration by Executive Member (Policy and Resources).

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

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