Contact: Sheila Little, (01962) 847545; [email protected]

1 Summary

1.1 This report sets out the proposed Children's Services revenue budget for 2006/07, a provisional budget for 2007/08 and recommends a revised budget for 2005/06.

1.2 The following decisions are sought:

· To approve for submission to the Leader and Cabinet:

i) The revised budget for 2005/06 of £782.975m (as set out in Appendices 1 and 2)

ii) The carry forward of 100% of the projected under spend in 2005/06 of £85,000 to contribute to the Change for Children programme

iii) The creation of a Change for Children earmarked reserve which will consist of the elements set out in para 8.6 of the main Policy and Resources Report. Separate approval will be sought from the Executive Member for Children's Services in due course for use of these funds as the Change for Children programme is developed

iv) The base budget for 2006/07 of £777.493m (as set out in Appendix 3)

v) The proposals for growth of £19.411m (net of savings) (as set out in Appendix 4)

vi) The proposals for efficiency improvements £4m in 2006/07 (as set out in Appendix 5)

vii) The annual review of income and charges (as set out in Appendix 6)

viii) The workforce implications of the proposed budget for 2006/07 (as set out in Appendix 7)

ix) The detailed budget for 2006/07 (as set out in Appendix 8)

x) The summarised trading accounts of business units (as set out in Appendix 9)

xi) The provisional budget for 2007/08 (as set out in Appendix 10)

2 Reason(s)

2.1 Cabinet has requested that:

· Service budgets be prepared for approval by Executive members within the provisional budget guidelines set by Cabinet in December 2005 and submitted to the Leader and Cabinet for consideration in February 2006

· Executive members identify annual efficiency improvements of least 2.5% of which at least 1.25% are cashable in the Government's terms. Cash savings in budget terms are required to meet new pressures, service developments or legislative requirements which cannot otherwise be met within the budget guidelines

· Executive members report back on their annual review of charges and maximisation of income

· Executive members report back on the workforce implications of their proposed budgets as part of the process of linking workforce and financial planning.

2.2 Decisions on the Children's Service Department revenue budget support the corporate strategy aims, specifically maximising life opportunities, achieving economic prosperity and improving services by focusing financial resources in these areas.

2.3 Also, Children's Services contribute to the five outcomes of the Children Act and the revenue budget uses the six priorities established in the Annual Performance Assessment (APA) to set the key performance indicators underpinning the financial strategy.

2.4 Proposals need to be submitted to the Cabinet on 10 February 2006 in order to influence decisions on the 2006/07 budget and council tax.

3 Other options considered and rejected: Not applicable

4 Conflicts of interest declared by the decision maker or other Executive member consulted: None

5 Dispensation granted by the Standards Committee: Not applicable

6 Reason(s) for the matter being dealt with if urgent: Not applicable

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

Councillor Mrs H F Hindson

Executive Member for Children's Services