The County Council’s revenue and capital budget for 2010/11 and subsequent years was proposed at Cabinet on Monday 1st February.  This budget maintains front line services, and provides an extra £6.3m of funding to continue road improvements, without an increase in council tax levels for 2010/11.  This is delivered through prudent management of reserves and delivery of significant efficiency savings over the medium term.  The budget also recognises the continuing pressures related to the ageing population, more people with learning disabilities and rising pupil numbers.

Hertfordshire continues to receive a ‘floor’ increase in its formula grant, the lowest increase possible of 1.5% for 2010/11.  Whilst information on the level of settlement for 2011/12 and subsequent years is not yet available, it is expected that government grant levels will decrease in these years.  

The budget includes nearly £90m of investment in a school expansion programme to respond to the rising demand for primary and secondary school places - in addition to the ambitious Building Schools for the Future and Academy projects already underway.

The Council launched its Business Transformation Programme in December 2009, signalling a step change in the way it does business in order to ensure that its can deliver further savings, whilst keeping the range and quality of its services. 

The analysis of capital and revenue proposals across service areas for 2010/11 is shown in the table below:


 

Net Revenue BudgetCapital Proposals
 £m£m
Adult Care Services310.97.0
Children’s services223.692.6
Environment and Commercial131.958.5
Fire and Rescue40.21.8
Resources and Performance (including central items)91.815.5
Strategy and Partnerships10.70.1
Less movement in general fund balance(57.6) 
 751.5175.5
Use of Reserves(14.3)(6.3)
Proposed Budget737.2169.2


Cabinet will meet again on 15th February to recommend a budget to a meeting of the full Council on 23rd February, taking account of latest available information.  If you would like to make any comments on the proposals, please send them to hazel.stuart@hertscc.gov.uk by 11th February.

Following the County Council’s budget-setting meeting on 23rd February, the County Council will provide business with an update on the final approved revenue and capital budgets and council tax for 2010/11.

The full report for the 1st February Cabinet meeting can be found on our website at www.hertsdirect.org/yrccouncil/civic_calendar.  Reports for the 15th February Cabinet and 23rd February County Council meeting will also be available on our website nearer those dates.