To receive apologies for absence.

Apologies were received from Councillors A.C.R. Chappell and W.J.S. Thomas.

To receive any declarations of interest by Members in respect of items on this agenda.

There were no declarations of interest.

To approve and sign the Minutes of the meetings held on 12th and 14th January, 2005.

RESOLVED:   That the Minutes of the meetings held on 12 January and 14 January, 2005 be confirmed as a correct record and signed by the Chairman.

To enable Strategic Monitoring Committee to feed into the consideration of the Revenue Budget 2005/06 which will be determined by Council at its budget meeting on 11th March 2005.

The Committee was invited to submit its comments on the proposed Revenue Budget 2005/06 for consideration by Cabinet, prior to Cabinet recommending a budget to Council.

The report submitted to Cabinet on 27th January, 2005 was presented to the Committee.  This detailed the factors influencing the budget position and reflected the recommendations of the Budget Panel.  A supplementary report by the Leader of the Council which had been tabled at the Cabinet meeting, amending the target savings, was also presented.

It was noted that Cabinet had endorsed the following recommendations from the Budget Panel, as amended by the Leader’s report as tabled at the Cabinet meeting:

·         That the securing of targeted service savings, as set out in paragraph 40 of the Cabinet report, be endorsed, particularly having regard to the need to achieve ‘Gershon’ efficiency targets.

·         That Cabinet note the outcome of the Public Consultation exercise.

·         That work continues to secure Service Improvement Programme and Procurement Savings.

·         That the Rate Support Grant Settlement be noted but with concern that on the basis of the accompanying advice from government the significant additional resources provided for 2005/06 are unlikely to be repeated in future years.

·         That the potential clawback of grant, referred to in paragraph 16(h) of the Cabinet report, be noted with concern.

·         That the application of reserves referred to in the report be supported.

·         That, having regard to the potential capping position, Cabinet refers its budget proposals to Strategic Monitoring Committee indicating that at its final meeting on 24th February, 2005 it would intend to recommend to Council a Council Tax increase of between 4% and 4.5%.

The Chief Executive drew the Committee’s attention to the conclusions set out in the Cabinet report.  He highlighted in particular that whilst the local government finance settlement for 2005/2006 was better than had been predicted there was every indication the additional monies made available in support of the current year’s settlement would not be repeated in 2006/2007.  

In this context paragraph 40 of the Cabinet report set out the principles which it was suggested might underlie the Council’s budget strategy:  the retention of targeted service savings of £3 million; meeting the requirement to achieve efficiency savings as required by the Gershon review, and the allocation of resources thereby released to the priorities identified in the Council’s Medium Term Financial Plan and Corporate Plan.   A decision would have to be made on how far a longer term view was to be taken in terms of using those monies to even out the very significant burden that would otherwise be faced, particularly in 2006/07 but also in 2007/08.

Attention was also drawn to uncertainties which surrounded the Comprehensive Spending Review.

The current levels of reserves and proposals for the application of reserves were also described.  It was suggested that reserves could prudently be applied to the Social Care budget, the Property budget, funding the change team required to introduce the Children’s Services Directorate, supporting the Service Improvement Programme and the Procurement Programme and increasing  ...  view the full minutes text for item 60.