(a)

setting out the Council’s indicative revenue and capital budget, building on income assumptions  and their impact on the Council tax; 

(b)

indicating that the draft budget brought together the elements of the Council’s income and expenditure strategy, summarised by each department, together with its capital strategy.  It also reviewed the impact on future revenue and capital plans for 2012/13 and 2013/14; 

(c)

advising that, as a Council, preparations were being made for unprecedented reductions throughout the 2010/11 budget period, applying in-year budget reductions of £4m.  Full clarification of the Council’s settlement and the implications on grant allocations, were still awaited;

(d)

outlining a new approach to the development of this year’s budget, by rolling forward the revenue reductions of £4m in 2010/11; revising the assumptions on inflation and growth; challenging down future years spending profiles; stopping some activity linked directly to withdrawn grants and setting new, targets linked to the four top level priorities (to deliver growth; raise aspirations; reduce inequality; and provide value for communities);

(e)

indicating that eleven budget delivery groups had been set up to review expenditure across the Council and target savings had been agreed and applied. These reductions had then been converted into clear three year departmental budgets;

(f)

appending the following documents -

?

departmental indicative budgets;

?

breakdown of revenue ‘Invest to Save Reserve’;

?

Local Government Act 2003, Section 25 -

Section 1: Analysis of Budget Robustness

Section 2: Adequacy of Reserves;

?

Capital Investment Programme 2010/11 to 2014/15;

?

directorate revenue budget delivery plans.

(g)

to improve transparency and public confidence, all items of expenditure over £500 would be published monthly online, beginning from January 2011; 

(h)

their policy was to minimise job losses but it was felt that 500 posts would be lost over the next three years to reduce workforce costs by approximately 14%.  Negotiations would commence shortly with trades’ unions on staff terms and conditions;

(i)

the documents were still in draft, for consultation and scrutiny in January 2011.

(j)

the budget built on plans and strategies already in place to provide better value for money; 

(k)

although the detail of the settlement was still being worked through, Cabinet were confident that over the 3 years the delivery plans were still appropriate and deliverable;

(l)

Cabinet Members and officers had been working all year on the delivery plans and only those items which could be delivered, had been included to savings in year one;

(m)

to ensure that children were safeguarded whilst making budget reductions, a Commissioning and Finance Board had been set up and delivery plans had been put in place to look at new ways of preventing children from needing to come into care, where the risk could be managed differently.  This would enable focus on the most vulnerable children;

(n)

a cross departmental programme board was in place to develop and oversee delivery plans for Adult Social Care, together with the introduction of personalised and preventative services;

(o)

there were no changes proposed during the coming year to the waste collection service;

(p)

the potential funding reductions were still being assessed, however the strategy for sport, leisure and culture continued to be in place, with the Life Centre as an important part of the programme;

(q)

with regard to police reforms and reduced funding for partners, community safety partnerships would continue and partners were still assessing the impact of grant reductions.  The Leader congratulated the police on the policing arrangements at Plymouth Argyle on Saturday last;

(r)

investment in the web and telephone system would enable overtime, a 24/7 Council for people to access services.  Customer services would be improved with increasing services being handled through one telephone number and one conversation.  

(1)

Leader is authorised to agree the draft Corporate Plan, for the purposes of consultation and scrutiny, in accordance with the budget and policy framework procedure rules;

(2)

the proposed revenue target budget requirement of £194.2m for 2011/12 and five year capital programme of £189.4m is recommended for consultation;

(3)

Cabinet consider findings from consultation, feedback from budget scrutiny and any material changes announced in the final settlement for Plymouth City Council in early February 2011 and recommend the final revenue budget for 2011/12 to Full Council on 28 February 2011.