Contact: Paul Carey-Kent, ext 7525

1. Introduction

This paper explains how this committee's scrutiny role is operating for the current budget process, and sets out the other financial processes for which members of this committee might take a scrutiny role and the intended forward timetable.

2. Budget 2005/06

2.1. Members of the Scrutiny and Select Committee (and of the preceding Policy and Resources Review Committee) have indicated in the past that they would ideally like to:

· comment in advance of the Cabinet consideration on the proposals for the budget guidelines to be applied in the forward budget development process and

· comment in advance of the Executive member's consideration on the detailed budget proposals in response to those guidelines for Policy and Resources services.

2.2. Timetabling issues have made this difficult in general and particularly difficult this year:

· The Government delayed its guideline announcements from the planned mid-November to 2 December 2004, with results that no relevant information was available at the meeting of this committee on 2 December ahead of the Cabinet discussion of guidelines on 13 December.

· A meeting of this Committee was planned for 17 January, which could have enabled comment on Policy and Resources' own services prior to the Executive decision day on 20 January. However, such papers would have had to be circulated late, there was little other business for the committee and the Chairman's informal soundings had suggested that it was at the overall corporate level rather than that of Policy and Resources services that this Committee was most interested in commenting. In view of that set of considerations, the planned meeting on 17 January was cancelled.

2.3. Given that the meeting process did not allow for consideration in the timescales available, comments were invited on the two papers (Budget Guidelines and Policy and Resources' own budget), with copies of both papers sent to all members of this Committee. Although this was too late to influence the guidelines to which individual Executive members had been asked to respond, this was in time to influence both any Cabinet decisions on how responses to guidelines are handled (for example if members believe that guidelines should have been different) and to comment on details of the Policy and Resources budget.

2.4. In response to this process, x members stated that they had no comments, x members commented on the process for considering the budget but not on specific items and z members commented on the budget proposals in the papers. Their comments may be summarised as follows:

............... (Colin to provide data - due by end of this week)

In addition, the Leader has invited members of this Committee to meet him informally in order to discuss any matters arising from the budget papers.

3. Other Financial Processes

3.1. The following timetable is proposed for corporate financial processes:

· 11 April: consider the Council's draft efficiency plan for 2005/06, due to be finalised for return to the Government by 15 April and to demonstrate how savings of 2.5% (half of them cashable) will be made.

· 6 June: consider the draft statement of efficiencies achieved during 2004/05 (these being potentially countable against 2005/06 targets - there will be a requirement to produce such an assessment each June for the preceding year)

· 12 September: consider the Council's final accounts for 2004/05, with a particular focus on reviewing the way in which additional budget allocations have been spent and with what outcomes

· 5 December: consider, so far as possible, the Council's forward budget planning and framework issues for 2006/07

· January 2006: further consideration of budget guidelines and responses to those guidelines as they develop, together with revised budget information.

3.2. At all these points this Committee may also wish to consider specific issues for the Policy and Resources services.

4. Conclusion

4.1. This year's budget process has allowed for this Committee to make comments on the budget in accordance with the principles of scrutiny, but timing issues have mitigated against the Committee's preferred means of achieving such input. It may be that timings will remain difficult until the Government either meets its own announced deadlines for providing settlement details or moves to three year budgets. Nonetheless, every attempt will be made to ensure consultation with this committee on the budget guidelines takes place through the usual meeting process next year, together with other financial processes as set out in 3.1 above.

5. Recommendations

5.1. That members note the approach taken to budget consultation, the views expressed by members of the committee, and the intention of improving the process next year.

5.2. That members agree the broad timetable for scrutiny of financial processes during 2005/06, as set out at para 3.1.

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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