The Director of Finance presented the projected budget for 2012-2015, following the agreement of the budget for 2011-2012 at the meeting of the Council held on 1 March 2011. He set out the key assumptions which underpinned the projections and highlighted grant negotiations, other legislative issues and the impact of savings previously agreed by the Cabinet. The Director commented that the budget projections were the most likely outcome from a wide range of options and would also be subject to the impact of a number of issues upon which the Government was consulting. Consequently, he indicated that whereas the shortfall of £21.3m projected for 2012/2013 was relatively firm, the situation from 2013 onwards was less so, because of the uncertainty in relation to grant income.

In response to a comment from a Member with regard to a pay award not being made in 2012/2013, the Director indicated that it was not a matter that the Government could enforce on local authorities. However, in the absence of a pay rise, the £1m set aside would be returned to balances, thereby reducing the projected shortfall.

Resolved – That the budget projections be regularly reviewed.