(Time: 3.21pm to 3.28pm)
The Executive received and considered report 94/08 of the Head of Finance which proposed four stages to the budget setting process for 2009/10. These were:
1. gathering of base data and the production of a standstill budget
2. consolidate the standstill budget and share with the Executive
3. budget proposals issued for consultation
4. final budget proposed and approved
In December 2008, the Executive would be asked to issue its budget proposal for consultation. This would include details of the standstill budget, unavoidable growth, cost reduction ideas and discretionary growth bids. It would also include the Government’s initial estimate of the grant support the council was likely to receive in 2009/10. Non-Executive Members would be able to question the Executive on its proposal either informally, by lobbying, or formally through the Scrutiny Committee. A meeting would also be held to allow the business community to be consulted on the budget proposals.
Members noted that it was proposed not to include the support service recharge budgets and the capital budgets within the net service budgets in the medium term financial plan. This would more clearly demonstrate the net budgets of each Service Area which could be influenced and controlled by the appropriate Deputy Director. The Executive supported the proposed budget-setting timetable.
The first draft of the medium term financial plan was appended to the report. This looked at known budgets and cost pressures over a four year period and was used as a tool to set a long term sustainable budget. It was noted that the budget setting would again be difficult this year due to financial pressures.
The current economic climate had resulted in less income from planning applications, mainly due to developers being more cautious before proceeding with developments. There was less activity in the housing market generally, resulting in less income from Land Charges also.
RESOLVED
that the budget setting process, as detailed in report 94/08, be approved.