Issue - meetings

1.         Mr Shipton introduced the report and explained that the Government’s formula grant settlement had been confirmed only for 2010/11 as the last year of the current 3 year local government settlement, and the comprehensive spending review which will inform the next 3 year settlement was due to start in the summer of 2009 but had been deferred until after the forthcoming general election, making the consultation timetable for the review both late and tight.  He indicated that officers were working on an assumption that future settlements were likely to be less than they had been accustomed to for a number of years.  He also indicated that there was no certainty over some specific grants which could impact in 2010/11.  One optimistic piece of news for the Regeneration ad Economic Development Portfolio is that income from the Local Authority Business Growth Incentive (LABGI) scheme in 2009/10 is £500k more than expected when the budget was set, and it is estimated that the KCC will receive a similar amount in 2010/11 which will helped towards the overall budget.  However, after 2010/11, the current LABGI scheme comes to an end and there was no indication of what might replace it.

2.         Mr Shipton, Mr Oxlade and Mrs Cooper answered questions from Members, explaining the following:-

a)         KCC is assuming average inflation levels of 1.5%, 1.5% and 1.8% for 2010/11, 2011/12 and 2012/13 respectively in the draft budget proposals presented to the Committee and thus there is little scope to make further savings from the current low levels of inflation;

b)         no provision had been included for a cost of living pay increase for staff in 2010/11, so any figure which is awarded will be an extra budget pressure to be met;

c)         SEEDA had withdrawn £0.5 million of funds for 2010/11 from the South East, and it was expected that other agencies would also be reducing expenditure;

d)         securing sponsorship for activities undertaken by bodies such as Visit Kent would have only partial benefit, as the tourism team already exploits external funding wherever possible. KCC funding often acts as leverage for significant external funding;

e)         the directorate worked on long term projects, and had to be certain of being able to follow through and complete a project.  The Government’s funding mechanism does not always support the long term picture; and

f)          the directorate’s draft budget included a service growth item of £400k for a new statutory duty for KCC in relation to undertaking a Local Economic Assessment and setting up an Economic Prosperity Board, which was set out in a report to the POSC on 12 November 2009.  

3.         In discussion, Members expressed the following views about priorities:-

a)         so many aspects of the budget are unknown at this stage. It is very difficult for Members to give a view without being able to judge the effect of their decision.  In partnerships, and in the field of regeneration and economic development, KCC’s decisions have an impact on others’ prosperity, and in  ...  view the full minutes text for item 2