Agenda and minutes

None Declared.

A report was presented by Gill Kilpatrick, County Treasurer, setting out the latest position in respect of the revenue budget proposals for 2011/12 – 2013/14 and the responses received to consultation.

It was reported that the County Council would be required to make savings of £179.1m over the next three years and that the three year budget strategy proposed would allow greater clarity for service users, staff and the wider community.

As a result of confirmation from the Government of the final settlement, the County Council would be impacted by a further reduction in grant funding of £139,000 in 2011/12 and £22,000 in 2012/13. However, the council tax base in Lancashire was growing and it was reported that this would equate to a small increase in resources of £137,000 in 2011/12. In addition, a small surplus on the 2010/11 council tax collection fund was reported which will provide one –off resources of £99,000 in 2011/12.

It was noted that there were a number of risks and uncertainties with specific reference to the potential impact of the clarification of the guidance in relation to Ordinary Residence, the Local Government Resource Review; levels of specific grant and the New Homes Bonus which might still impact on the County Council's financial position. There was a need to maintain an appropriate level of balances including provision for funding voluntary severance.

Josh Church, Michaela Hall and Samantha Parkes, Members of the Lancashire Youth Council, presented their views on the revenue budget proposals making specific reference to transport and bus routes, young people's services, job opportunities and apprenticeships and the long term economic future. Members of the Cabinet responded on specific issues raised. A copy of the views of the Lancashire Youth Council was set out at Appendix 'A' – Annex 2 to the report.

The members of the Lancashire Youth Council were congratulated on their presentation and thanked for the views expressed.

County Councillor John Shedwick, Chair of the Scrutiny Committee, County Councillor Maggie Skilling, Chair of the Health Scrutiny Committee and County Councillor Pat Case, Deputy Chair of the Education Scrutiny Committee, presented the views of their respective Overview and Scrutiny Committees on the revenue budget proposals. A copy of the views of the Overview and Scrutiny Committees was set out at Appendix 'A' – Annex 2 to the report.

County Councillor Shedwick, County Councillor Skilling and County Councillor Case were thanked for their presentations and for the views expressed.

Resolved:- That Cabinet:

(i)  Notes the change in council tax resources as set out within the report, which provides additional resources of £0.137m in 2011/12, a further £0.028m in 2012/13, and £0.054m in 2013/14 resulting from the increase in Council tax base.

(ii)  Notes the small surplus on the 2010/11 council tax collection fund providing additional, one-off resources of £0.099m in 2011/12.

(iii)  Notes the impact of the final settlement announcement on the level of formula grant funding to be received by the County Council of a reduction in formula grant of £0.139m  ...  view the full minutes text for item 2.

A report was presented by Gill Kilpatrick, County Treasurer, setting out proposals in respect of the Capital Investment Strategy for 2011/12 – 2014/15 which included additional capital resources for investment in key priorities for 2011/12 – 2013/14 and an indicative programme for 2014/15.

The proposals set out would result in a total capital investment of £442.2m during 2011/12 – 2014/15 and the level of over programming of £12.7m in the first three years was important in terms of preventing excessive levels of slippage.

Resolved: - That Cabinet:

(i)  Welcomes and endorses the Capital Investment Strategy set out in the report now presented, and endorses the approach of setting a firm three year programme with an indicative fourth year given the financial uncertainties around longer term planning.

(ii)  Welcomes the total capital investment in Lancashire of £442.2m which will be delivered through the capital investment strategy over the next four years. This will deliver key priorities which support the growth of Lancashire's economy in particular through maintaining and improving transport infrastructure and the delivery of the County Council's economic framework.

(iii)  Agrees to maintain the policy of passporting resources allocated for schools and transport to those services.

(iv)  Authorises the County Treasurer to make any final adjustments to the programme in relation to the phasing of expenditure prior to the programme being submitted to the Full Council.

(v)  Recommends the strategy set out in the report which will bring additional capital investment of £218.498m over the next four years to Lancashire. The strategy and its annexes are recommended to the Full Council on 17 February 2011, as adjusted in Annex 1 to these resolutions to reflect the final Local Government Finance Settlement.

(vi)  Instructs the County Treasurer to identify means of ensuring that the forecast resource gap in relation to the indicative 2014/15 programme can be bridged.

(vii)  Agrees to the level of over programming within the firm programme being set at a maximum of £12.7m, on the basis that this is kept under review with a view to being reduced over the life of the programme in order to maintain affordability.

(viii)  Notes the commitments from earlier years schemes flowing in to the 2011/12 to 2014/15 programme which will invest a total of £223.7m.

(ix)  Recommends to the Full Council the Minimum Revenue Provision Statement set out in the report.

Resolved:- That the report of the decision taken by the Leader of the Council on Superfast Broadband in Lancashire, be noted.

There was no urgent business to be considered.

The Cabinet noted that its next meeting would be held on Thursday 3 March 2011 at 2.00pm at the County Hall, Preston.