Consultation on Medium Term Financial Plan & Budget for 2004/05

BOROUGH OF POOLE

SERVICE PROVISION SCRUTINY COMMITTEE

6 NOVEMBER 2003

CONSULTATION ON MEDIUM TERM FINANCIAL PLAN & BUDGET FOR 2004/05

PURPOSE

To seek the views of the Service Provision Scrutiny Committee on the draft Medium Term Financial Plan (2004/08) and the proposed budget for 2004/05 as part of the budget consultation process.

1.Background

1.1At the Cabinet meeting on 14th October 2003, Members approved the draft Medium Term Financial Plan 2004/08 and the draft budget 2004/05 as the basis for a consultation. A consultation programme was set out within the report which included each of the Council’s three Scrutiny Committees. A copy of the report is at Annex 1.

1.2The Medium Term Financial Plan and the budget for 2004/05 should be seen in the context of the Council’s priorities and the proposed development of a corporate strategy and business plan as agreed by Cabinet on 9thSeptember2003.

2.Issues for Consideration by the Scrutiny Committee

2.1The Medium Term Financial Plan sets out a medium to long term view of the Council’s financial proposals. In addition to allowing for the Council’s objectives and priorities to be met, the plan highlights a funding gap which Members will need to address over the period of the plan. A savings and income strategy is currently being developed which will assist the Council to identify and plan for efficiencies and income generation.

2.2The following issues within the draft Medium Term Financial Plan are highlighted since they may be of particular interest to the Scrutiny Committee.

i)A sum of £2m has been provisionally earmarked to deal with maintenance issues.

ii)In order to address the waste strategy, to support the Council’s priority on “Pride in Poole” £1m capital and £300k revenue have been allowed. In addition provision has been made to support affordable housing from the proceeds of Council house sales.

iii)Provision has been made within the base budget to address a number of unavoidable issues (eg new responsibilities such as liquor licensing and landfill tax).

iv)The budget does not allow for significant growth or new service investments. A number of new proposals have been put forward which are currently being evaluated. It is proposed within the Medium Term Financial Plan that, if any of these investments are funded, they will need to be met from savings elsewhere.

v)Capital funding of £1m has been earmarked within the Medium Term Financial Plan for the Central Area Regeneration.

3.Conclusion

3.1It is proposed that the response from the consultation on the Medium Term Financial Plan will be included within the budget report to Cabinet on 9thDecember 2003.

Bernie Topham

POLICY DIRECTOR

Background Papers

Strategy and Budget 2004/05 onwards – Cabinet, 9th September 2003-10-29

Medium Term Financial Plan – Cabinet, 14th October 2003

SPSC-061103

29 October 2003