Budget speech to full Council

In seconding this proposal can I thank my colleague the port folio holder for Performance for a good description of the whole financial structure which will guide us for the next year? Like him I appreciate that the presentation of all the budgetary issues are much clearer to the layman than in the past and I support this approach as it fits with the controlling Group objectives regarding transparency. I would further congratulate him on overseeing the inclusion of our corporate objectives, mainly our growth agenda and member involvement in decisions to do with our use of taxpayers finance. I would further thank all our officers and staff for their hard work and indeed support over the last year. At a time when it appears that the only thing we can be certain of is uncertainty it has been really encouraging to see how officers have responded to various challenges with enthusiasm and professionalism through this ongoing period of change. To our partners at East Dorset with whom we have worked to achieve the savings detailed in his report. And to members for their patience as we unravelled the complexities of a new system of central government grants meaning that our timetable was put under severe pressure. To the more senior members special thanks for accepting that the presentation of financial reports have had to change to reflect the new concentration on efficiency and transparency. It has been made clear that the reduction in government funding will continue so in looking forward we must discount reliance on this source and seek opportunities to increase our income stream. In determining our financial future members will be aware therefore of the financial challenges that lay ahead, in the short term the affect of initiatives like the new homes bonus, the Community Interest Levy currently out for consultation. Where we can, we have to see these as opportunities and maximise potential income and oversee its application to the benefit of the Borough. This applies to all returns on our assets and investments hence our recent review of council accommodation. In the long term, the immerging opportunities of projects like the City Deal and Pinch Point funding, directed to improving our transport infra-structure and our involvement with the Local Enterprise Partnership. Our engagement with a ‘growth agenda’ to encourage and welcome new and existing business to our Borough will feature highly. Also made clear is that with the change in business rate management our inherent risks will be greater, we will have to continue the financial prudence to mitigate those risks. All of this further complicated by the change in the benefits structure, low interest rates, the unprecedented rise in energy costs and the unpredictability of just about everything we are responsible for. The effect of inflation and all that means, members will be aware that inflation for 2010/2011 was recorded at 5.2% for 2011/2012 at 3.5% and is currently running at 3.3%, this represents a further real time reduction in the value of our spending power, so I am pleased with his recommendation for a modest increase in Council tax to mitigate the decrease in the value of the pound in our pocket. So we adjust little now to avoid a great deal more at a later date as inflation grows year on year. The difference between accepting a freeze grant is that it drops away and we fall back to square one. Members there are challenges ahead to face at ward and Borough level where outcomes will be dependent upon resources but we will be driven by our determination to maintain the exemplary level of service our community has come to expect. We will also encourage our communities to embrace the opportunities of the government’s localism agenda. A tough task ahead requiring solid financial management, budget ownership and control directed to meeting our corporate targets.