Agenda item

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 in 2011/12 and £0.022m in 2012/13.

(iv)  Notes the overall impact on the level of revenue funding available over the three year budget strategy of items 2, 3 and 4 above as set out in the table below.

(v)  Agrees that the additional revenue funding of £0.097m in 2011/12 and £0.006m in 2012/13 be used on a one-off basis to fund additional investment in highways maintenance and enable the level of savings required in 2013/14 to be reduced.

(vi)  Notes the advice of the County Treasurer in relation to the robustness of the budget and the adequacy of reserves.

(vii)  That, in relation to the level of savings required for Adult Social Care provision, the Cabinet Member for Adult and Community Services, following consultation with the Leader, the County Treasurer, and the Executive Director for Adult and Community Services, be authorised to:

a.  consider the responses to the ongoing consultation, 'Making Difficult Decisions about Funding Adult Social Care Services in Lancashire', due to end on 28 February 2011;

b.  determine the future provision of Adult Social Care Services for 2011/12 – 2013/14 in the light of the consultation responses at a) above and within the Revenue Budget limits agreed by the Full Council on 17 February 2011.

(viii)  Recommends a budget requirement of £769.117m, with a resulting nil increase in council tax as set out in the table below, to the Full Council on 17 February 2011, subject to the agreement before that date by Cabinet Members of their respective DFM budget proposals within the overall cash limits set out in item 9.

(ix)  Agrees the proposed cash limits set out at Annex 1 to the report, subject to the amendments set out above, resulting in the following cash limits to be recommended to the Full Council on 17 February 2011:

Note: the figures in the table above for individual directorates will be amended in the budget report to the Full Council – on a net nil basis overall – for the effects of the allocation of central support costs, for pension costs on an FRS 17 basis, and for notional capital charges.