The Director of Finance submitted a report which provided details of the Government announcement on 10 June 2010 to reduce grants to local government and the implications for Wirral Council.

Having circulated an amended recommendation to the Cabinet it was then moved by Councillor Holbrook, seconded by Councillor Green and –

Resolved – That,

(1) the reduction in Local Authority Business Growth Incentive Grant be met from the general balance. That the amount that the Council would have paid to the Voluntary and Community Sectors from the Local Area Agreement Reward Grant still be paid, and that the Director of Corporate Services report back on how this can be achieved;

(2) as a matter of priority, the Director of Finance reports on the impact on the Capital Programme of the loss of capital grant reviewing all spending which is financed through capital grant funding. The review shall assess the spending of capital grant funding against criteria including its alignment with corporate plan priorities, the scale of impact and the record of effectiveness in achieving the desired outcomes from such spending. This review will form the basis on which spending decisions of capital grant will be based both in the future and in the current financial year;

(3) as a matter of priority, the Director of Corporate Services brings forward a report to Cabinet reviewing all spending which is financed through Area Based Grant funding and setting out where this funding impacts on staffing. The review shall assess the spending of ABG funding against criteria including its alignment with corporate plan priorities, the scale of impact and the record of effectiveness in achieving the desired outcomes from such spending. This review will form the basis on which spending decisions of ABG will be based both in the future and in the current financial year;

(4) arising from Tuesday’s Emergency Budget announcements and the specific reference to public sector pay, we await the conclusion of the national pay bargaining arrangements. Following this, any remaining budget from the amount allocated to cover the cost of the provision for pay awards be moved to balances.