Contact: Jon Pittam, ext 7400

(With the concurrence of the Chairman under Section 100 (B) (4) (b) of the Local Government Act 1972, this matter was included on the agenda to ensure that initial parameters can be set for the Autumn round of budget discussions).

1. Summary

1.1 This report sets out:

· range of possible budget and council tax rises over the next three years in the light of the summer announcements on Spending Review 2004 and Schools funding

· suggested basis for the Autumn round of budget discussions between the Leader and Executive members on the implications of budget pressures and priorities compared with the base budget and possible areas for efficiency savings

· a possible approach for budget consultation.

1.2 The following decisions are sought:

· implications of SR2004 are noted

· Autumn round of budget discussions between the Leader and Executive members should start from the base budget, plus the minimum funding guarantee for schools, and should identify additional spending pressures and priorities offset by redeployment and efficiency savings

· any additional budget proposals to be subject to a detailed business case showing how performance will be improved and value for money demonstrated

· new powers for discretionary income charges and trading be explored to identify new sources of income

· cash efficiency savings of £9m, from procurement, staffing savings, and the next phase of SAP benefit realisation savings, be explored (table 9)

· resulting budget strategy for 2005/06 be as set out in paragraph 5.1

· firm budget guidelines be set in December 2004 after taking account of these budget discussions and analysis and in the light of the provisional local government finance settlement, as set out in paragraph 5.2

· separate efficiency savings targets set by Government for Supporting People be achieved without cross subsidy elsewhere within older people and other adults, or additional council tax support

· the usual round of budget consultation meetings be arranged with representative groups

· a community workshop or telephone survey be considered on specific options after budget guidelines for 2005/06 have been set.

2. Reason

2.1 The Cabinet requested a further report on the implications for the budget and council tax forecasts as a result of the announcements considered at the July meeting.

2.2 Parameters need to be set for the Autumn round of budget discussions and consultations before firmer budget guidelines are set in December 2004, after the announcement of the specific FSS and grant figures for the County Council in the provisional local government finance settlement.

2.3 This is the next step in the preparation of the budget strategy for 2005/06. The budget underpins all the aims of the Corporate Strategy.

3. Other options considered and rejected

3.1 A possible range of budget options is set out in the report.

4. Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5. Dispensation granted by the Standards Committee

5.1 Not applicable.

6. Reasons for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: (signature) Date: (date of decision)

Councillor T K Thornber