AGENDA ITEM NO.
FINANCE & PERFORMANCE SCRUTINY COMMITTEE
THURSDAY 26 FEBRUARY 2009
REPORT FROM CHIEF FINANCE & PERFORMANCE OFFICER
BUDGET PROCESS REVIEW
1.
PURPOSE OF THE REPORT
To briefly review the 2009/10 budget process and consider refinements to improve
the way in which the 2010/11 budget is formulated.
2.
INFORMATION
Review of the 2009/10 Budget Process
2.1 The timetable and process for the 2009/10 budget was considered by the Finance &
Performance Scrutiny Committee on 17 April 2008 (report CFPO/32/08S). The
arrangements were approved by the Executive Board on 3 June 2008. A key feature
of the process was to start early in the year, prior to the summer, and to fix dates for
meetings through to the setting of the budget and council tax on 25 February 2009.
2.2 Significant levels of savings were planned for given the tightening of UK public
expenditure as determined by the Comprehensive Spending review CSR07. As this
covers a three-year period then it is certain that resources will remain under pressure
in the medium term.
2.3 The early start and thorough process enabled all savings to be realised without major
impact on frontline services, schools were protected from efficiency savings and staff
changes were phased on a gradual managed basis. The rigorous approach was
successful in driving out efficiency savings.
2.4 A limited number of service pressures were incorporated into the budget, particularly
in the areas of social care (adult and children’s services) and other services relating
to the vulnerable.
2.5 In addition, scrutiny committees were involved in challenging specific savings items
late on in the process.
2.6 A further development in the 2009/10 process was the significantly increased level of
consultation with all taxpayers through the internet and the Connect magazine.
2.7 In summary, the 2009/10 process built on the good practice of previous years and
was flexible enough to adapt to the external changes which affected timescales and
anticipated resource levels.
2.8 There is always scope for improvement and the next section outlines the proposed
enhancement for the 2010/11 process.
2010/11 Budget Process
2.9 It is not intended to make major changes to the process. Members can consider how
well this year goes and perform a more major review in April 2010 if deemed
necessary.
2.10 The Chief Finance & Performance Officer has been encouraging feedback on
2009/10 over the past month from officers and members and these are incorporated
below:
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3.
Update the timetable with fixed meeting dates to be incorporated following the
Annual Council Meeting in May – See Appendix 1 for latest timetable.
Keep all Member Workshops during the preliminary stages of the process.
Maintain the role of the Finance & Performance Scrutiny Committee in the
later stages of the process.
Attempt to move away from ‘across the board’ percentage savings by
targeting potential block savings.
Inclusion of the consideration of prudential borrowing in the early stages of the
process.
RECOMMENDATION
To recommend a process and timetable for the production of the 2010/11 Revenue
Budget to the Executive Board.
4.
BACKGROUND PAPERS
N/A
5.
WEBSITE INFORMATION
N/A
Report Ref: CFPO/17/09S
APPENDIX 1
Timetable – Production of the 2010/2011 Revenue Budget
/02/09
Finance & Performance Scrutiny Committee
Review of the 2009/10 budget process and consider improvements
for the 2010/11 process. This will include a detailed timetable for the
process.
/04/09
Executive Board - approve the budget process and detailed
timetable proposed by Finance & Performance Scrutiny Committee
/06/09
Executive Board – Revenue Outturn for 2008/09 considered.
/06/09
CFPO – Financial Prospects and budget process outlined to DCT i.e.
Chief Executive, Strategic Directors and Chief Officers.
/06/09
Finance & Performance Scrutiny Committee – Consider the
Financial Prospects.
/07/09
Executive Board - Receive a financial prospect briefing
/07/09
1. Strategic Management Team asked for service pressure and
savings areas.
2. Chief Officers formally asked for service pressure and savings
areas.
/09/09
All Member Workshop - to cover financial prospects and areas for
further research into potential for savings, the use of prudential
borrowing and an update on formula work by Distribution Sub Group.
End September/
Early October
2009
/10/09
/10/09
Late October/
Early November
2009
November/
December
/11/09
Welsh Assembly Government – Overall WAG budget published
(does not include Local Government specific information).
Strategic Management Team/Lead Member – Consider position.
All Member Workshop – Consider latest proposed budget and levels
of reserves and balances .
Welsh Assembly Government – Publishes Provisional Local
Government Settlement.
Consideration of specifications by other Scrutiny Committees as
appropriate.
Executive Board – Approve latest budget for consultation with Public
and Unions.
November 2009
Chief Officers – Risk assessment of Budget.
Mid December
2009
Welsh Assembly Government – Final Revenue and Capital
Settlement published.
/12/09
Executive Board – Approve budget for final scrutiny.
Early January
2010
Welsh Assembly Government – Formal approval of Local
Government Settlement.
/01/09
Consideration of the final budget by Finance & Performance Scrutiny
Committee.
/01/10
Executive Board – Recommend Budget for approval by Council.
February 2010
Incorporate Fire Levy, Police and Community Council Precepts.
/02/10
Deadline for any proposed amendments to the budget to be
submitted to the
Chief Finance & Performance Officer.
/02/10
Council – Budget and Council Tax Level for 2010/11 set.
March 2010
CFPO – Council Tax demands despatched.