(i)         that all Members and the Overview and Scrutiny Board be requested to consider the implications of the target budgets set for the individual business units (as set out below).  Overview and Scrutiny to consider the budget papers at its meetings in January 2012 and report back to the Mayor and the Council on 1 February 2012 on the outcomes of its deliberations and stakeholder representations;

            * Corporate Budgets include Treasury Management, Precepts, External Audit   Fees, Concessionary Fares, IT licences;

(ii)        that all Members and the Overview and Scrutiny Board be requested to consider the Review of Reserves report and recommendation;

(iii)       that all Members and the Overview and Scrutiny Board be requested to consider the fees and charges for each service and note the Medium Term Resource Plan;

(iv)       that the Chief Finance Officer be given authority to amend these targets for any technical adjustments necessary between services and within the overall envelope of funding in agreement with the Mayor and Executive Lead  Member with responsibility for Finance;

(v)        that the Chief Finance Officer report to Council on 1 February 2012 on the implications for 2012-13 and later years as a result of these targets currently being considered and in light of the final settlement which is expected in late January or early February;

(vi)       that the Chief Finance Officer responds to the implications upon Torbay of the Provisional Local Government Finance Settlement, after consultation with the Mayor and Executive Lead Member for Finance;  and

(vii)      that an Equalities Impact Assessment (EIA) be completed following the consultation process and presented to the Mayor with any recommendations from the Overview and Scrutiny Board.

Alternative options were not considered.

This decision will come into force on 13 December 2011 and forms part of the six week consultation process on the budget.

At the Council meeting on 8 December 2011, the Mayor announced his provisional spending targets for 2012/13 (as set out in the paper circulated after the meeting) to start the consultation process for scrutinising and developing the budget proposals.  The provisional targets and development of the budget would support the Council in delivering its key aims and objectives as set out in the Community Plan and Corporate Plan for 2012/13.

The Council faces significant challenges in light of ongoing uncertainties about the economy and the spending targets had been set in this context with the largest cuts to public spending and local funding for a generation.  The Provisional Local Government Finance Settlement had not been announced, but the Government’s intention to ‘top-slice’ the local government grant to fund academy schools may require the Council to identify additional savings.  The impact of significant reductions to the local government grant will result in the Council facing a number of difficult decisions to ensure services can be delivered within much reduced finances compared to previous years. 

The provisional spending targets have been set in recognition of the need to ensure resources are prioritised in accordance with agreed plans but mindful of further reductions to the local government grant over the course of the four year Comprehensive Spending Review.  If the targets identified provide more savings than is required this will allow the Mayor to reinvest money into priority services.

The consultation on the 2012/13 budget has been open since September 2011 to allow members of the public to have their say on their priorities and the proposals which have been put forward to date.  In addition, the Mayor wishes to hear the views of all members, the Overview and Scrutiny Board and external stakeholders on his proposals before finally recommending a budget to the Council on 1 February 2012.

None.