Agenda item

Following an introduction by the Executive Councillor for Finance, the Council is requested to consider the Cabinet’s recommendations relating to the Medium Term Plan for 2006/10, the 2005/06 Budget and related Prudential Indicators (see also Item No. 117 of the Report of the meeting of the Cabinet).  Report by the Director of Commerce and Technology enclosed.

In conjunction with a report by the Director of Commerce and Technology (a copy of which is appended in the Minute Book) and Item No. 117 of the Report of the Cabinet, the Leader addressed the Council on the Medium Term Plan for 2006/10, the 2005/06 budget and related prudential indicators.

Members were reminded of the decisions that they had previously approved in respect of the Council’s financial strategy which incorporated a minimum increase in Band D Council Tax for 2005/06 amounting to £12 per annum.  Reference also was made to potential variations to the approved Medium Term Plan, the base budget review and early consideration of the Government’s efficiency review.  Having regard to the level of revenue support grant announced, the Leader emphasised that the Council remained the most under-funded District Council in cash terms in England by a total £748,000 which would have obviated the need for an increase in Council Tax at the level proposed.

Attention was drawn to the observations of the Overview and Scrutiny Panels and to the views expressed by the business community at a consultation meeting held on 26th January 2005.

Turning specifically to the recommendations of the Cabinet, the Leader anticipated that the efficiency savings target would be difficult to achieve given the low spending base of the Authority.  In addition, the Leader drew attention to additional duties which had been imposed on the District Council without any corresponding increase in funding from Government and to the significant investment which continued to be made to Council services.  Notwithstanding the proposed increase of £12 per annum in Council Tax for a Band D property, Councillor Holley added that this was still 25% below the average council tax level for District Councils in England.  On behalf of the Council, the Leader thanked Officers and Members of the Overview and Scrutiny Panels for their constructive contributions to the budgetary exercise at each stage.

On behalf of the Liberal Democrat Group, Councillors Downes acknowledged the opportunities afforded to the Overview and Scrutiny Panels to contribute to the budget process but questioned the reality of the budget given the continuing uncertainty in terms of the Council’s future office accommodation requirements.  Regarding the detailed budget, Councillor Downes welcomed reductions which had been proposed amounting to £500,000 per annum but questioned why these had not been identified earlier.  Councillor Downes also drew attention to the commitment made to the customer first project which was contrary to the findings of a recent customer survey as to the support for such an option.  Whilst not proposing an alternative budget or MTP, Councillor Downes indicated his regret at the proposal not to lend further support to a number of schemes comprising the Summer Outdoor Arts Event, Youth Participation Project, Grant Aid to Voluntary Organisations and Members’ Support Assistant.

RESOLVED

  (a)that a net revenue budget of £17.373m and a net capital budget of £23,087m for 2005/06 be approved;

  (b)that revenue reserves of £1.826m be made available for expenditure in 2005/06;

  (c)that a Council Tax increase of £12 on a Band D property in 2005/06 be approved;

  (d)that the Capital Programme for 2006/07 be approved to increase opportunities for obtaining lower tender prices;

  (e)that, subject to annual review, the remainder of the Medium Term Plan for 2006 – 2010 be approved; and

  (f)that the prudential indicators as set out in Appendix C to the report now submitted be approved.