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

1 Summary decision sheet

1.1 This decision sheet sets the scene for decisions on the 2007/08 revenue budget and council tax, based on the budget guidelines provisionally set in September 2006 and approved in December 2006. The 2007/08 budget takes account of subsequent developments and the reports back by the Executive Members. The council tax rise is 4.9% as set in the guidelines and within the Government's capping limit of 5%.

1.2 The report is in four parts:

· this summary decision sheet, containing the detailed recommendations required on the budget and council tax

· the Executive Summary, part A of the accompanying report, which can be read as a stand alone review of the 2007/08 budget proposals. There is no need to read beyond that unless further information or details are required

· part B of the accompanying report which provides more information behind the recommendations and the Executive Summary

· the appendices which comprise the detail of the budget, as considered by Executive Members for each service

1.3 The following decisions were made, based upon the recommendations from the Leader and Cabinet to the County Council for the 2007/08 budget and council tax that:

1. the revised estimates 2006/07 (Appendix 2) be approved

2. the anticipated underspendings of £0.7m on Environment and Policy and Resources and an overspending of £0.3m on Children's Services both be carried forward to 2007/08 (Table 4)

3. the estimated over commitment on Adult Services of £10.9m in 2006/07, as part of the two year recovery plan, be written off against balances as provided for in the review of the 2006/07 budget by Cabinet in July 2006; and that any remaining balance of the 2006/07 contingency within the Adult Services budget at the year end be carried forward to 2007/08 to offset pressures in that year, providing that the overall impact on balances does not exceed £10.9m.

4. a provision for future inflation and contingencies of £15.0m, including £4m for the waste management contract be approved (Table 23)

5. the additional pressures and growth proposals from Executive Members totalling £25.7m be approved (Table 1 and Appendix 4)

6. the cash efficiency savings and redeployment proposals of £21.4m put forward by Executive Members, be approved (Table 1 and Appendix 4)

7. additional growth of £0.8m for Hampshire Action Teams; and additional capital financing costs of £0.7m from higher interest rates and prudential borrowing, pending capital receipts; both be approved as met by additional income from the growth in the tax base

8. the annual review of charges and maximisation of income across services (Table 14 and Appendix 6) be approved

9. adjustments to reserves as set out in paragraph 11 and Table 19 and the overall level of reserves (Appendix 10) be approved

10. the estimated level of balances at 31 March 2008 of £14.4m (Table 20) be approved

11. the workforce implications of the proposed budget 2007/08 (Appendix 8) be agreed

12. the budget for 2007/08 as summarised in Tables 21 to 25, set out in detail in Appendix 7 and including the adjustments in recommendations 5 to 10 of the report and further adjustment to the Environment carry forward on highway maintenance, be approved

13. the medium-term financial plan for 2008/09 - 2009/10 as set out in Appendix 9 be approved

14. the treasury management and the annual investment strategies for 2007/08, as set out in Appendix 11, be approved

15. it be a recommendation to Council that

a) the Treasurer's report under Section 25 of the Local Government Act 2003 be taken into account when the Council determines its budget and precept for 2007/08 (Appendix 13)

b) the revenue budget for 2007/08 (as set out in the attached draft budget book) and the medium-term financial plan be approved

c) the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2007 be £598,223,000

d) the County Council's band D average council tax for the year beginning 1 April 2007 be £955.62

e) the County Council's council tax for the year beginning 1 April 2007 for properties in each tax band be:

	£
Band A	637.08
Band B	743.26
Band C	849.44
Band D	955.62
Band E	1167.98
Band F	1380.34
Band G	1592.70
Band H	1911.24

f) precepts be issued totalling £471,356,287.22 on the billing authorities in Hampshire, requiring the payment, in such instalments and on such dates set by them and previously notified to the County Council, in proportion to the taxbase of each billing authority's area as determined by them and as set out below:

	£
Basingstoke and Deane Borough Council	61,049.70
East Hampshire District Council	47,044.89
Eastleigh Borough Council	43,012.29
Fareham Borough Council	42,043.00
Gosport Borough Council	26,948.20
Hart District Council	36,953.10
Havant Borough Council	42,468.00
New Forest District Council	71,687.40
Rushmoor Borough Council	30,359.64
Test Valley Borough Council	45,019.00
Winchester City Council	46,661.35

g) that the annual investment strategy (section 7 to Appendix 11) be approved

h) the prudential indicators (annex to Appendix 12) be approved.

2. Reason

2.1 The full County Council must agree the 2007/08 revenue budget and set the
council tax for 2007/08 at its meeting on 21 February 2007. The Leader will
present his budget speech and recommendations at that meeting. This report
provides the background to those budget decisions and presents the
recommendations from the Leader and Cabinet to the County Council.

2.2 The County Treasurer under Section 25 of the Local Government Act 2003 is
also required to report to the full Council on the:

· robustness of the estimates for 2007/08

· adequacy of the financial reserves in the budget.

2.3 These decisions support the corporate strategy by providing resources for:

· Hampshire safer and more secure for all

· maximising wellbeing

· enhancing our quality of place

2.4 The budget is part of the integrated financial, performance and workforce planning process linked to the corporate strategy, and resources have been allocated as the highest priority for maximising wellbeing towards meeting the needs of the most vulnerable in Adult Services and Children's Services.

3. Other options considered and rejected:

3.1 Other options are not available as far as process and timetable are concerned, but it is expected that the leaders of the opposition parties will wish to present their own recommendations on the budget and council tax to the County Council as amendments to these proposals.

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 for the matter being dealt with if urgent - Not applicable.

Approved by: Date:
Councillor T.K. Thornber, C.B.E. - Chairman