Contact: Jon Pittam, (01962) 847400; [email protected]

1 Summary

1.1 This report reviews the feedback from the consultation on the budget options agreed provisionally by the Cabinet in September, provides an update on relevant Government announcements since September, and on progress in developing plans to achieve pay and benefits realisation savings in 2007/08.

1.2 The following decisions are sought:

(i) to confirm the provisional budget and capital programme guidelines covering a period extending (for capital purposes) to 2010/11, as the basis for executive members to prepare draft revenue budgets and capital programmes for consideration by the Cabinet on 9 February 2007

(ii) to agree the basis of the County Council's response to the consultation on the 2007/08 revenue support grant settlement, as outlined in the appendix

(iii) to note progress on delivering plans to achieve pay and benefits realisation savings.

(iv) to require Executive members to report back in February on specific action plans to make benefit rationalisation savings totalling £2m in 2007/08 to meet the unfunded costs of pay and benefits

(v) as a result of consultation, to confirm the planned council tax rise of 4.9% (£0.87 per week per band D tax payer) and to delete plans to cut services by £10.7m to achieve a 2.5% council tax rise.

2 Reasons

2.1 The Cabinet needs to confirm the budget guidelines on which executive members are requested to prepare proposed budgets, following the consultation that has taken place in the autumn.

3 Other options considered and rejected:

3.1 None.

4 Conflicts of interest declared by the decision maker or other Executive member consulted

4.1 None.

5 Dispensation granted by the Standards Committee

5.1 Not applicable.

6 Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: Date:

Councillor T K Thornber, CBE