Democracy | Full Council – 24 February 2010

Full Council – 24 February 2010

Present

THE MAYOR – Councillor Armitage

Councillors Ali, Bainbridge, Barker, Barkworth, Berry, B Briggs, JBriggs, Mrs Bromby, Bunyan, Carlile, Cawsey, Clark, Collinson, Davison, Eckhardt, Ellerby, England, L Foster, T Foster, Glover, Gosling, Grant, Jawaid, Kirk, O’Sullivan, Poole, Mrs Redfern, Regan, C Sherwood, N Sherwood, Mrs M Sidell, Mrs Simpson, Smith, Stewart, Swift, K Vickers, P Vickers, Waltham, Wardle, Wells, Whiteley and Wilson.

The Council met at Pittwood House, Ashby Road, Scunthorpe.

1828 MAYOR’S REMARKS – The Mayor welcomed everyone to the council’s budget meeting.

1829 DECLARATIONS OF PERSONAL OR PERSONAL AND PREJUDICIAL INTERESTS – Declarations of personal interests were indicated as follows –

Member	Subject/Minute
Councillor M Ali	Licensed Hackney Carriage Driver
Councillor S Bainbridge	North Lincolnshire Homes – Board Member
Councillor J Briggs	Humberside Fire Authority – Member
Councillor P Clark	North Lincolnshire Homes – Board Member
Councillor Ishaq Jawaid	Humberside Police Authority – Member
Councillor D Stewart	Member of South Axholme Swimming Association
Councillor R Waltham	North Lincolnshire Homes – Board Member

1830 (19) FINANCIAL STRATEGY 2010/2013, REVENUE BUDGET 2010/2011 AND FINANCIAL PLAN 2010/2013, CAPITAL PROGRAMME 2009/2014 AND TREASURY MANAGEMENT AND STRATEGY REPORT 2010/2011 – The Service Director Finance submitted reports relating to the Financial Strategy 2010/2013, the Revenue Budget 2010/2011 and Financial Plan 2010/2013, the Capital Programme 2009/2014 and the Treasury Management and Investment Strategy for 2010/2011. Each year the council decides its spending plans for the next financial year.

This starts in April and the plans include –

A Revenue Budget to cover the day to day running costs of council services.
A Capital Programme of investment in buildings and infrastructure.
A Treasury Management and Investment Strategy which says how the council will invest its cash, both for investment in assets or to help its cash flow and manage its debt.

Each of these issues was dealt with by a separate report.

The budget is part of a long term financial strategy because the council needs to be sure that spending on services is sustainable. It must also ensure that its resources are deployed in the most effective way to deliver improved public services and to do so with increased efficiency.The background paper on the financial strategy for 2010/2013 considers some key issues and the implications namely –

The current economic situation and the state of public finances.
Council priorities and performance.
The outcome of consultation with the public and other stakeholders on service and spending priorities.
The implications for the council’s financial planning.

There is a legal requirement to set a revenue budget each year. The council had to decide the level of spending it could afford and had to take account of how much government grant it would receive and the level of council tax it wished to set. The council had to make sure that it set a balanced budget – that it had identified adequate finance to pay for its spending plans. The government had reserve powers to cap increases in council tax and the revenue budget which it considered excessive. The Minister for Local Government had made clear that an increase below last year’s average of 3per cent was expected. In addition, the council had a separate capital programme for longer term investment in services. This was spending on the construction and improvement of assets such as schools, roads and other council run facilities. The rules which govern this investment changed in 2004. There is now a prudential code which governs investment and this had recently been updated. The council had to ensure the scale of investment was affordable and prudent over the long term. It was explicitly required to calculate the cost for the next three years but a longer view was often necessary to ensure the full cost of investments were made clear.

The council had also adopted the CIPFA Code of Practice for Treasury Management, the standard of best practice. This too had been revised in the light of the Icelandic Banking Crisis and its impact on local government investment. The code required the council to set a strategy for the investment of cash surpluses, the management of its debt portfolio and to define how and in what circumstances it would borrow.

As last year, a key consideration is the current and long term impact of recession on public finances and on the funding of local government in particular. The report considered how this affected the council’s options, but there remained a considerable degree of uncertainty. The steps to be taken by government to close the public sector deficit would become clearer in the coming months.

The council also had priorities which it shared with other public bodies such as the PCT, Police and Fire Authorities which are focussed on delivering four ambitions:

An area that is thriving.
Communities that are confident and caring.
Individuals can see the difference.
Everyone works for the benefit of the area.

Judgements are made on the performance of the council and its partners by independent inspectors who consider a number of outcomes which are detailed in paragraph 2.8 of the first report.

The options for revenue and capital spending and for the treasury strategy were set out in the three reports within the overall agenda. Although the primary focus was on the next financial year 2010/11 and the council tax decision, as required by law, decisions had to be made taking into account the medium and long term perspective. The background paper on the financial strategy provided some context for these decisions. It provided information on –

The public finances
Performance
The outcomes of consultation

Each of these had implications for how the council framed its financial plans and these were set out in paragraph 3.2.

An analysis of the current recession and the public finances were detailed in paragraph four of the report and these included an assessment of likely government spending plans for 2011/2014 with particular reference on bringing down the national budget deficit. This is now projected to be slightly more than at budget 2009.

The plans allow government spending as a whole to grow by 0.8 per cent a year. In practice, this is likely to mean an increase for aggregate managed expenditure (which includes demand led budgets like social security) and real reduction in departmental expenditure limits, which is spending by government departments, quangos and grants departments allocate to local authorities. The Institute for Fiscal Studies had modelled the data in the budget report to give an estimated real term reduction of – 2.3 per cent a year in departmental budgets and a + 3.4 per cent a year increase in demand led budgets. The figures were speculative, but the logic reasonable in the context of the overall public finance totals. It also fits with the broad consensus among economic experts that the deficit is not sustainable and spending reductions will be necessary.

How spending reductions will be allocated across public spending is not yet known but there are clear signals in “Putting the Frontline First, Smarter Government” published alongside the pre-budget report in December 2009 that frontline services like schools, health and police will have a degree of protection. Schools and health are the largest areas of service expenditure and it is unlikely that either will be totally immune to spending reduction. However, other areas of public spending will inevitably face proportionately larger cuts. The civil service, quangos and local government services not covered by guarantees will inevitably face real reductions.

The report referred to some commitments which would deliver more resources or reduce pressures on resources and these were set out in paragraphs 4.6 and 4.7.

In a separate piece of work ‘After the Downturn’ published in December 2009 CIPFA/SOLACE provide an authoritative analysis of two possible scenarios for the period 2011/14 and how public spending reductions should be achieved and where they should fall. The first scenario, a 7.5 per centreal terms reduction over three years, matches the IFS analysis. The second, a 15 per cent real terms reduction – which equates to a 3 per cent cash reduction each year – reflects a range of uncertainties about the depth of the downturn, the speed of recovery and different approaches to bringing down the deficit in the public finances. The paper encouraged public bodies to:

Plan for longer term reductions which would take time to implement.
Expect to make real reductions in some public services as efficiencies will not be sufficient.
Expect limited scope for increasing income or council tax to compensate for government funding reductions – because of the economic circumstances.

The report also proposed three strategic options for the public sector –

Redefining the relationship between the state and the individual.
A significant de-layering of the public sector with more decision making at the local level.
Major initiatives to maximise economies by more effective collaboration between public bodies.

Planning for the future would also take account of the prospects for capital investment which had been substantial over the past ten years. There was likely to be a sharp reduction in grant from governmental bodies and the council’s own ability to supplement this with prudential borrowing paid for from revenue and receipts from asset sales would be severely constrained by a potential cash freeze on revenue grant and by a sluggish property market.

In responding to this prognosis and the public finances the Service Director Finance set out some clear implications for the council’s financial strategy if the council was to be in a position to continue to offer good quality services in the years ahead. These included:

Maximising the council’s tax and grant income now to provide a base on which to support services in the future, taking into account what the public can afford.
Maximising reserves to provide resources for priming the delivery of efficiencies and to facilitate financial adjustment.
Deliver larger efficiencies from a lower cost base through transformation.
Be rigorous in re-aligning resources to priorities.
Give careful consideration before making new long term financial commitments.

The report also considered issues in relation to performance and particularly the Comprehensive Area Assessment, a new inspection regime which began in 2009, and which judged the delivery of shared objectives by the council and its partners – police, fire and NHS as adequate. As expected the “bar” for good or excellent performance had been raised and there was a significant reduction in the number of areas around the country judged good or excellent. The report contained further details about how performance would be measured and appendix 2 to the report contained further information on current performance which informed budgetary decisions.

Finally, the financial strategy paper set out details of the consultation exercise carried out during December and January by an independent company which had carried out in depth interviews with over 200 local residents on council spending priorities for the future. This provided up to date feedback on a range of options for council service levels and investment following a similar exercise two years ago. The findings of the exercise were detailed in appendix 1 to the report. Business consultation was also a statutory requirement and as in previous years this had taken place through the council website. Businesses had been invited to comment on budget priorities through “links to business” e-Newsletter by e-mail or by post. The Federation of Small Businesses had written separately in September to highlight the severity of the recession on businesses and families and they had asked that consideration be given to a number of issues which were set out in paragraph 4.23. In addition, consultation had taken place through the town and parish council liaison arrangements and with the Scrutiny Co-ordinating Panel which had considered the budget report on 16 February 2010. A training session for all members on the budget report was also held on 17 February 2010.

Revenue, Capital and Treasury issues were then considered in each of the three papers that followed. However, each of these were inter-related and decisions on the revenue budget, council tax, capital programme and treasury management had to be taken in the context of the council’s overall financial strategy as set out in the preceding paragraphs.

With regard to the revenue budget, the report referred to the need to determine the council’s revenue budget for 2010/2011, the setting of the council tax for 2010/2011, the financial strategy for 2010/2013 together with the approval of items required by the Local Government Act 2003. In relation to the finance settlement, the report indicated that it was an established principle that the costs of running local authority services were met partly from local taxation and partly from government grant. The components changed over time so there was a balance between local and central funding. Currently the only local tax was the council tax. Business rates were set nationally, collected locally and paid over to government and re-distributed as grant. The total of government grant support was called Aggregate External Finance (AEF). This comes in three ways – Formula Grant, Specific Grants and Area Based Grant (ABG). The Area Based Grant was a relatively new funding stream which started in 2008/2009 but not new money. A number of specific grants which were previously paid separately were now pooled. The government argues that this gives local authorities more flexibility to determine their own priorities. In theory therefore, it is a general grant like formula grant which can be used for any purpose.

This was the final year of a three year local spending grant settlement which was part of the government’s comprehensive spending review 2008/2011. The government had kept its commitment to provide stability of funding and the settlement confirmed the formula grant for the third year of the settlement 2010/2011 at the previously announced level. For North Lincolnshire the increase was 4.1% or £62.256m in total. This increase was above the average and reflected changes to the formula which favoured areas outside London, scaled down to ensure minimum or “floor” increases for councils losing grant. The figures announced were for one year only as there was no indication of funding levels for the next three year settlement period 2011/2014.

The report also referred to the council tax and precepts for 2010/2011. North Lincolnshire Council was the billing authority for the area. This meant it was responsible for setting the council tax to meets its own demands and meet the precepts of lower and higher tier authorities in the area. The precepting authorities were –

Parish and Town Councils in North Lincolnshire
Humberside Police Authority
Humberside Fire Authority

In addition, special expenses for Scunthorpe, equivalent to a parish precept, had to be set by the council. Each precepting body decided its own budget and council tax requirements. Parish precepts were set by parish councils but were required to be part of the budget requirement set by the council. Special expenses were for the council to decide. The Police Authority set its precept on 16 February and the Fire Authority on 15 February 2010. Parish details were contained in appendix C to the report.

The revenue report also referred to maintaining financial resilience, planning ahead, setting a strategy for reserves and delivering efficiencies. It also referred to the need to set a balanced budget for 2010/2011, ensuring estimates were robust and ensuring the adequacy of those reserves. Further detailed information was contained in appendices to the report.

In relation to the capital programme, the report indicated that the council had to decide its capital programme for 2009/2014 and approve the prudential indicators for council borrowing to meet the requirements of the Local Government Act 2003. The building of assets such as schools, roads, housing and other council owned facilities was covered by the council’s capital programme. Grants to other organisations and

individuals for capital purposes were also included. The Local Government Act 2003 required capital spending to be accounted for separately. The council had to fund capital expenditure in certain ways. These included –

Grants and other external funding
Borrowing
Capital receipts from the sale of council assets.
Direct contributions from the council’s general fund revenue budget

There were some restrictions attached to each type of funding and these were detailed in paragraph 2.3 of the report.

The council had to take into account the advice of the Chief Financial Officer on the affordability of the capital programme being proposed. This advice was contained in sections 3, 4 and 5 of the report at 2(c) and in paragraphs 3 of the report at 2(b). It set a limit on the size of the potential capital programme and priorities therefore had to be determined. This advice had to take account of the prudential code, produced by CIPFA. This set out the key principles which had been revised and re-issued to take effect from 1 April 2010. These are –

Affordability and
Prudence

In addition, the council had to have regard to –

Value for money
Proper stewardship of its assets
Service objectives
The practicality of its investment plans

The key indicators and limits set for a rolling three year period were detailed in paragraph 2.6 of the report. The prudential code also required two further indicators as follows –

An upper limit on the council’s fixed interest and variable interest rate exposures (a limit on what can be borrowed at fixed and variable interest rates)
Upper and lower limits for the maturity structure of borrowings (the term of the debt)

The indicators had to be regularly reviewed and revised where necessary. Details were contained in appendix C to the report at 2(c) or within the report on treasury management report at 2(d). In addition, the council was expected to have adopted the CIPFA Code of Practice for Treasury Management in the public service. This had recently been revised and re-issued to take effect from 1 April 2010. There was also revised guidance from the CLG effective from the same date.

The report contained further detailed information about the proposed capital programme which was detailed within the report and in various appendices. New investment proposals were set out at appendix B and details were contained in paragraph 3.6 of the capital report at 2(c).

With regard to the treasury management and investment strategy, the report detailed the rules for councils when they borrow to pay for investment. The report at 2(d) – appendix 4 outlined the treasury management and investment strategy for 2010/2011. It had been prepared in line with –

A revised CIPFA Code of Practice for Treasury Management (2009)
The revised Prudential Code (2009)
The Local Government Finance Act 2003
Revised Investment Guidance from the Department for Communities and Local Government (CLG)

The report detailed the legal framework for treasury management and investments and indicated that the Code of Practice for Treasury Management had been reviewed and updated following the recent scrutiny of the investment practices of local authorities in the aftermath of the Icelandic Banking failure. This took account of the report “risk and return” from the Audit Commission, the report of the Communities and Local Government Select Committee and the new prudential code. The revisions to the code strengthened the arrangements for ensuring that proper practices were adopted. Much of what the code recommended reflected current practice.

CIPFA had revised its definition of treasury management to emphasise the management of risk. It was CIPFA’s view that throughout the public service the priority was to protect capital rather than to maximise return. The avoidance of all risk was not appropriate or possible but care had to be exercised in the management of public money. Appendix A to the report at 2(d) set out the key principles. CIPFA also recommended that all public service organisations adopt four clauses as part of standing orders, financial regulations or other formal policy documents. The clauses define the components of effective treasury management, including the treasury strategy, treasury management practices and roles and responsibilities. The council was asked to adopt these revised clauses in the form set out at appendix A to the report to replace part D Rule 6.08 of the Constitution (Financial Regulations). They allocated responsibilities to appropriate groups and individuals in the council as follows –

Full council to receive a report on treasury strategy at the start and after the end of each financial year with a further mid-year review.
To delegate to cabinet responsibility for regular monitoring
To delegate to the Service Director Finance the implementation and
The Audit Committee to provide effective scrutiny

In practice, the Audit Committee and Cabinet had already taken on responsibilities during 2009/2010 and the only additional change was a mid-year report to council.

The report then set out details of the prudential code, the guidance from the CLG, the economic context of the current financial situation, the current portfolio position, the proposed investment and borrowing strategies and other detailed information. Attached as appendices were details of treasury management: the key principles of the CIPFA code, prospects for interest rates for 2010/2011, details of credit ratings, a list of financial institutions and the prudential indicators for 2010/2011 to 2012/2013.

Moved by Councillor Kirk and seconded by Councillor L Foster –

(a) That the capital programme for 2009/2014 be set in line with revised Appendix A of report 2(c) attached;

(b) That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme once known;

(c) That vehicles and equipment be financed from operating leases or borrowing as appropriate, and that costs be met from within approved revenue budgets;

(d) That the prudential indicators be approved in line with revised Appendix C of report 2(c) attached;

(e) That the Service Director Finance be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and operating leases);

(f) That the Service Director Finance be authorised, within the total authorised limit, and the total operational boundary, for external debt for any individual year, to effect movement between the separately agreed figures for borrowing and long term liabilities, in accordance with option appraisal and best value for money for the council. Any such changes made to be reported to the council at its next meeting following the change;

(g) That the Service Director Finance report back on any amendments required to prudential indicators during 2010/2011, to cabinet or council as appropriate;

(h) That the revenue budget for 2010/2011 be set in total and for each service as follows (with detailed adjustments to the budgets for 2010/2013 being shown in the revised appendix B1 and B2 attached to the report at 2(b));

Service	Budget £
Adult Services	39,102,500
Asset Management and Culture	7,246,600
Capital Financing	12,755,330
Children & Young Peoples Service	28,836,890
Community Planning & Resources	6,196,550
Contingency	1,835,900
Contribution to Balances, Worksmart Investment	1,008,000
Corporate Budgets	7,676,780
Developments	275,000
Finance	4,196,300
Highways & Planning	9,566,150
Human Resources	2,023,160
Legal & Democratic	2,843,780
Neighbourhood & Environment	17,972,510
Use of Reserves	250,000
Total Budget	141,285,450

(i) That all budgets be strictly cash limited to the figures set by the council;

(j) That it be noted that at its meeting held on 20 January 2010 the council calculated the following amounts for the year 2010/2011. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:

(a) 50,817.7 as its Council Tax Base for the year (regulation 3).

(b) the Council Tax Base for each part of the area as shown in Appendix C, column 2 (regulation 6) of the report 2(b);

(k) That the following amounts for 2010/2011, as required by Sections 32 to 36 of the Local Government Finance Act 1992 be approved –

(a) £357,528,419 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (2) (a) to (e) of the Act (gross expenditure including parish precepts and special expenses).

(b) £227,738,182 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3) (a) to (c) of the Act(income).

(c) £129,790,237 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 32(4) of the Act as its budget requirement for the year (net budget).

(d) £63,177,350 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed business rates and revenue support grant, increased by the amounts of the sums which the Council estimates will be transferred in the year from the collection fund to its general fund in accordance with Section 22 of part III of the Act (external support and collection fund surplus).

(e) £1,310.82 being the amount at (c) above less the amount at (d) above all divided by the amount at
(j) – (a) above calculated by the Council, in accordance with Section 33 (1) of the Act as the basic amount of its council tax for the year (Band D council tax including parish precepts and special expenses).

(f) £1,878.002 being the aggregate amount of all special items referred to in Section 34(1) of the Act (total of Parish precepts and special expenses).

(g) £1,273.86 being the amount at (e) above less the result given by dividing the amount at (f) above by the amount at (j) – (a) above calculated by the Council in accordance with Section 34 (2) of the Act as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special items relates (Band D council tax excluding parish precepts or special expenses).

(h) The amounts given by adding the amount given at (g) above to the amounts of the special items relating to dwellings in those parts of the Council’s area mentioned above, divided in each case by the amount at (j) – (b) above as calculated by the Council in accordance with Section 34 (2) of the Act as the basic amount of its council tax for the year for dwellings in those parts of its area to which one or more special items relate (Band D council tax including parish precepts for each parish).

(i) The amounts given by multiplying the amounts given at (g) and (h) above by the number which in the proportion set out in Section 5 (1) of the Act is applicable to dwellings listed in a particular valuation band divided by the number in which that proportion is applicable to dwelling listed in valuation band D is calculated in accordance with Section 36(1) of the Act as the amounts to be taken into account in respect of categories of dwellings listed in different valuation bands. (Council tax including parish precepts for each council tax band and each parish).

(l) That it be noted that for the year 2010/2011 the major precepting authorities have stated the amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (Police and fire precepts).

(m) That the amounts of council tax for the year 2010/2011 for each of the categories of dwellings be as specified in Appendices C1 and C2 of report 2(b). Having calculated the aggregate in each case of the amounts at (k) – (a) and (l) above in accordance with Section 32 (2) of the Local Government Finance Act, 1992 (council tax including police, fire and parish precept for each band and each parish);

(n) That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed;

(o) That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 3 of the report and at Appendix A of the report at 2(b) be confirmed;

(p) That the financial strategy for 2010/2013 be approved in line with appendices B1 and B2 of report 2(b) attached and indicative council tax increases be set at 3 per cent in 2011/2012 and 3 per cent in 2012/2013;

(q) That the efficiencies in revised Appendix D of report 2(b) attached be confirmed as interim targets, and that further efficiencies be identified through the transformation programme and through better measurement and recording of existing efficiencies;

(r) That the Service Director Finance be authorised to produce the necessary taxpayer information;

(s) That the adoption of the CIPFA Code of Practice 2009, the cross-sectoral guidance notes, the four clauses on treasury management and the changes to financial regulations set out in Appendix A to the report at 2(d) be approved;

(t) That the Treasury Management and Investment Strategy for 20102011 be approved;

(u) That the list of approved financial institutions at Appendix C2 to the report at 2(d) be approved;

(v) That the prudential indicators for 2010/2013 at Appendix D to the report at 2(d) be approved, and

(w) That the policy on the Minimum Revenue Provision at paragraph 4.25 of the report at 2(d) be approved.

Moved by Councillor Mrs Redfern and seconded by Councillor J Briggs as an amendment –

(a) That the capital programme for 2009/2014 be set in line with revised Appendix A of report 2(c) attached;

(b) That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme once known;

(c) That vehicles and equipment be financed from operating leases or borrowing as appropriate, and that costs be met from within approved revenue budgets;

(d) That the prudential indicators be approved in line with revised Appendix C of report 2(c) attached;

(f) That the Service Director Finance be authorised within the total authorised limit, and the total operational boundary, for external debt for any individual year, to effect movement between the separately agreed figures for borrowing and long term liabilities, in accordance with option appraisal and best value for money for the council. Any such changes made to be reported to the council at its next meeting following the change;

(g) That the Service Director Finance report back on any amendments required to Prudential Indicators during 2010/2011, to cabinet or council as appropriate;

Service	Budget £
Adult Services	338,657,520
Asset Management and Culture	8,284,450
Capital Financing	12,697,950
Children & Young Peoples Service	28,647,880
Community Planning & Resources	6,184,800
Contingency	1,370,000
Contribution to Balances, Worksmart Investment	1,008,000
Corporate Budgets	7,509,940
Developments	275,000
Finance	4,169,510
Highways & Planning	9,388,180
Human Resources	1,974,180
Legal & Democratic	2,828,620
Neighbourhood & Environment	17,909,460
Use of Reserves	1,209,000
Total Budget	139,421,490

(i) That all budgets be strictly cash limited to the figures set by the council;

(j) That it be noted that at its meeting held on 20 January 2010 the council calculated the following amounts for the year 2010/2011. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(a) 50,817.7 as its Council Tax Base for the year (regulation 3)

(b) the Council Tax Base for each part of the area as shown in Appendix C, column 2 (regulation 6);

(k) That the following amounts for 2010/2011, as required by Sections 32 to 36 of the Local Government Finance Act 1992 be approved.

(a) £356,603,456 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (2) (a) to (e) of the Act (gross expenditure including parish precepts and special expenses).

(b) £228,677,182 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3) (a) to (c) of the Act(income).

(c) £127,926,274 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 32(4) of the Act as its budget requirement for the year (net budget).

(e) £1,274.14 being the amount at (c) above less the amount at (d) above all divided by the amount at (j) – (a) above calculated by the Council, in accordance with Section 33 (1) of the Act as the basic amount of its council tax for the year (Band D council tax including parish precepts and special expenses).

(f) £1,862,023 being the aggregate amount of all special items referred to in Section 34 (1) of the Act (total of Parish precepts and special expenses).

(g) £1,237.50 being the amount at (e) above less the result given by dividing the amount at (f) above by the amount at (j) – (a) above calculated by the Council in accordance with Section 34 (2) of the Act as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special items relates (Band D council tax excluding parish precepts or special expenses).

(i) The amounts given by multiplying the amounts given at (g) and (h) above by the number which in the proportion set out in Section 5 (1) of the Act is applicable to dwellings listed in a particular valuation band divided by the number in which that proportion is applicable to dwellings listed in valuation band D is calculated in accordance with Section 36(1) of the Act as the amounts to be taken into account in respect of categories of dwellings listed in different valuation bands. (Council tax including parish precepts for each council tax band and each parish).

(m) That the amounts of council tax for the year 2010/2011 for each of the categories of dwellings be as specified in Appendices C1 and C2 of the report at 2 (b). Having calculated the aggregate in each case of the amounts at (k) – (a) and (l) above in accordance with Section 32 (2) of the Local Government Finance Act, 1992 (council tax including police, fire and parish precept for each band and each parish);

(n) That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act 2003 requirements (Part 2 Section 25 (1)(a) of the Act be confirmed;

(o) That the adequacy of reserves included in the budget in accordance with the Local Government Act 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 3 of the report and at Appendix A of the report at 2 (b) be confirmed;

(p) That the financial strategy for 2010/2013 be approved in line with revised appendices B1 and B2 of report 2(b) attached and indicative council tax increases be set at 2.5 per cent in 2011/2012 and 2.5 per cent in 2012/2013;

(r) That the Service Director Finance be authorised to produce the necessary taxpayer information;

(s) That the CIPFA Code of Practice 2009, the cross-sectoral guidance notes, the four clauses on treasury management, and the changes to financial regulations set out in Appendix A to the report at 2 (d) be approved;

(t) That the Treasury Management and Investment Strategy for 2010/2011 be approved;

(u) That the list of approved financial institutions at Appendix C2 to the report at 2 (d) be approved;

(v) That the prudential indicators for 2010/2013 at Appendix D to the report at 2 (d) be approved, and

(w) That the policy on the Minimum Revenue Provision at paragraph 4.25 of the report at 2 (d) be approved.

At the request of members and in accordance with Procedure Rule 1.23(d) the names of members voting for, against and abstaining from the amendment are as follows –

FOR: Councillors Berry, J Briggs, Mrs Bromby, Bunyan, Clark, Eckhardt, England, T Foster, Glover, Mrs Redfern, C Sherwood, N Sherwood, Mrs Sidell, Stewart, K Vickers, P Vickers, Waltham, Wardle and Wells.

AGAINST: Councillors Ali, Armitage, Bainbridge, Barker, Barkworth, B Briggs, Carlile, Cawsey, Collinson, Davison, Ellerby, L Foster, Gosling, Grant, Jawaid, Kirk, O’Sullivan, Poole, Regan, Simpson, Smith, Swift, Whiteley and Wilson

ABSTAINING: Nil

Amendment Lost

At the request of members in accordance with Procedure Rule 1.23(d) the names of members voting for, against and abstaining from the motion are as follows –

FOR: Councillors Ali, Armitage, Bainbridge, Barker, Barkworth, Carlile, Cawsey,Collinson, Davison, Ellerby, L Foster, Gosling, Grant, Jawaid, Kirk, O’Sullivan, Regan, Simpson, Smith, Swift, Whiteley and Wilson

AGAINST: Councillors Berry, B Briggs, J Briggs, Mrs Bromby, Bunyan, Clark, Eckhardt, England, T Foster, Glover, Poole, Mrs Redfern, C Sherwood, N Sherwood, Mrs Sidell, Stewart, K Vickers, P Vickers, Waltham, Wardle and Wells

ABSTAINING: Nil

Motion Carried