Issue - meetings

Report of Chief Executive and Head of Finance

Summary

To highlight the key announcements in the 2010 Comprehensive Spending Review, the potential implications for the Council in the short- to medium-term and the nature of the cost reductions which the Council must now consider in advance of finalising these once we have further information on our future grant from central government, expected in late November/early December.

The Comprehensive Spending Review was announced on 20 October 2010. Officers are considering the implications of the review for inclusion in this report which will be published as soon as it is available.

Recommendations

The Executive is recommended:

(1)               To note the outcome of the 2010 Comprehensive Spending Review for local government and the very tough target of an overall 26% cut in government grant over the next four years.

(2)               To note that this outcome is very much in line with our own 'realistic' planning scenario of 30% real term cuts, although we will not know our actual position until late November/early December.

(3)               To support all the proposed actions which are now underway to generate income and realise cumulative savings of £11.9m (listed in 3.13) for inclusion in 2011/12 budget.

(4)               To note the informal view of the Resources Scrutiny Working Group in relation to the fees and charges review. A number of these options are expected to be confirmed at the next formal meeting of the Resources and Performance Board (Appendix 2).

(5)               To note all the options for further savings which are under consideration in 3.22 so that when we receive a clearer indication of our actual government grant for 2011/12 and possibly beyond we are able to bring fully worked up savings for consideration at the 6 December Executive meeting.

Recommendations Approved

The Chief Executive and Head of Finance submitted a report which highlighted the key announcements in the 2010 Comprehensive Spending Review, the potential implications for the Council in the short- to medium-term and the nature of the cost reductions which the Council must now consider in advance of finalising having received further information on the future grant from central government, expected in late November/early December. In the course of discussion the Executive requested that the Independent Remuneration Panel be informed that in line with staff Council is likely to agree a 0% increase in allowances for elected members.

Resolved

(1)               That the outcome of the 2010 Comprehensive Spending Review for local government and the very tough target of an overall 26% cut in government grant over the next four years be noted.

(2)               That it be noted that this outcome is very much in line with the council’s 'realistic' planning scenario of 30% real term cuts, although the actual position will not be known until late November/early December.

(3)               That the proposed actions which are now underway to generate income and realise cumulative savings of £11.9m  for inclusion in 2011/12 budget be supported.

(4)               That the informal view of the Resources Scrutiny Working Group in relation to the fees and charges review be noted.

(5)               That the options for further savings as set out in the report be noted, so that when the council receives a clearer indication of the actual government grant for 2011/12 and possibly beyond, fully worked up savings can be brought for consideration at the 6 December Executive meeting.

Reasons

The actions highlighted will enable the Council to prepare a first draft of the 2010/11 budget. This will be presented to the Executive in early December and this report will include the latest position on the grant settlement and the impact on the medium term financial forecast.

Options