Budget Digest 2011/12

Budget Digest 2011/12 – 2014/15

Introduction

Welcome to Torbay Council’s Budget Digest for 2011/12 to 2014/15. This digest aims to provide Members, Officers and Torbay residents with a clear picture of the resources the Council will invest in its services in the current financial year and a projection of ongoing commitments over the subsequent three years to 2014/15 based upon current service provision.

The first section of the Budget Digest provides the background leading up to the setting of the revenue and capital budgets, as shown by the various reports to Council. These reports include the setting of prudential indicators for capital finance and the council tax setting report. In addition a summary of the budget build up and a summary of the funding of both the Revenue and Capital budgets are also included.

The budget for 2011/12 has been set in the context of some of the largest reductions to government grant for local authorities in a generation. This has required Torbay to make a number of difficult decisions to ensure a robust budget could be set. The council will be subject to further significant reductions over the following three years.

In arriving at the final approved revenue and capital budgets the Council has undertaken a detailed review and prioritisation process, which was initially based on the Community Plan and the Council’s Medium Term Resource Plan. This was then developed by considering reports on the outcome of the Local Government Finance Settlement for revenue and capital, peer and stakeholder views and challenge of budget proposals.

As part of the Government’s spending review the mix of central government grants has significantly changed, including the movement of grants from service income to general government grant. This has had an impact on year on year comparisons.

Detailed budget reports for each business unit were presented to the Priority and Resources Panel in December 2010 for full examination and consultation with stakeholders. Each of the budget reports presented to Members outlined the full implications, consequences and risks of the budget proposals for the Council. In addition the Overview and Scrutiny Board prepared a report for Executive, which outlined their recommendations, with particular reference to the risks associated with each of the budget options. These reports were copied to all Members.

In summary the Council will spend £387 million during 2011/12 on revenue and capital expenditure which includes:

£345 million on General Fund services such as Children’s Services, Adult Social Care, Housing, Highways, Economic Development, Culture and Tourism
£42 million on capital investment in the Bay’s infrastructure including schools and roads. The Capital Plan shows a planned investment of over £74 million in the period 2011/12 to 2014/15.

The Budget Digest is merely a document which describes the proposed Council plans in financial terms and should be read in conjunction with the Community and Corporate Plans for an overview and service business plans for the more detailed action and outcomes expected. The capital plan indicates how the Council intends to invest in its asset base and how the programme will be funded.

The Council is regularly updating its Medium Term Resource Plan (MTRP) in the light of issues arising from Business Plans and latest information from central Government. This Plan looks forward to assess future spending plans and resources. This is constantly reviewed with the next update due during summer 2011.

Copies of the Council’s recent annual Statement of Accounts and other financial information can be found on the Financial Services page.

Paul Looby

Executive Head for Finance

March 2011