To report on the provisional 2010/11 Local Government Finance Settlement and confirm the process leading to the setting of council tax at full council on 5March 2009.

The Cabinet Member for Resources introduced the report which outlined the provisional 2010/11 Local Government Finance Settlement which provided for an increase of 4% in Formula Grant in the last year of the Comprehensive Spending Review to an overall position of £57.584million.  The report additionally outlined the process leading to the setting of council tax at full Council on 5 March 2010.  The Cabinet Member advised that confirmation of the 2010/11 Local Government Finance Settlement was expected after 6 January 2010.

The Director of Resources welcomed the provisional 4% increase but emphasised that this figure could be reviewed in light of the prospect of worsening public sector funding issues.  He advised that the projected 3.9% increase in council tax accounted for within the Medium Term Financial Plan would not be achievable and that a probable lower level at which the council tax would be set would add to the Council’s financial pressures.  The Director highlighted to Cabinet the Personal Care at Home Bill currently under consultation, which would place additional pressures on the area based grant and on Adult Social Care, the possible impact of which was currently being scoped.

The Chairman drew Cabinet’s attention to the potential added financial burden to local authorities’ current budgets with the possible introduction of free personal care, and especially so to areas of maturing population such as Herefordshire.  Representation was being made by local government Leaders to Government on the Personal Care at Home Bill.  The need to be mindful of monies to and spend from the area based grant was also highlighted.

RESOLVED

THAT:

(a)   The 2010/11 settlement be noted; and

(b)   The timetable for setting the Council Tax be agreed.