Contact: Jon Pittam, (01962) 84 7400; [email protected]

1 Summary

1.1 This report sets out:

· the basis of the indicative budget plans for 2006/07 and 2007/08 approved by the Cabinet in February and reviews them in the light of subsequent events

· a suggested medium-term financial strategy, as a basis for consultation

· provisional budget strategy 2006/07, prior to decisions being made on budget guidelines in the autumn, following the announcement of the provisional Local Government finance settlement.

1.2 The following decisions are sought:

· that the options set out in paragraph 6 of the report form the basis for consulting on a provisional budget strategy for 2006/07 and 2007/08

· that the consultation arrangements for the autumn be agreed by the Chief Executive and County Treasurer, in consultation with the Leader.

1 Reason

1.1 Parameters need to be set for budget consultation and for reviewing budget pressures and priorities in the context of service plans, prior to firmer budget guidelines being set in December.

2 Other options considered and rejected

2.1 A range of other options are referred to in the report.

3 Conflicts of interest declared by the decision make or other Executive member consulted

3.1 Not applicable

4 Dispensation granted by the Standards Committee

4.1 Not applicable

5 Reason(s) for the matter being dealt with if urgent

5.1 Not applicable

Approved ........................................ Date ...........................................
Councillor T K Thornber, CBE