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Friday 18 February 2011

Budget Report 2011/12:

Working Together to Improve Community Life – Cheshire East Cabinet backs freezing Council Tax, boosting cash for children and vulnerable adults and nurturing economic growth

Cheshire East’s Cabinet has backed plans to freeze Council Tax while boosting the coffers of services for children, the elderly and vulnerable.

Despite a 25 per cent cut in Government grants over four years, proposals in a Budget Report approved unanimously by the Cabinet also aim to still further improve efficiency at delivering services, while helping nurture economic growth in the Borough.

The planned gross Council expenditure (funding available to services, less charges and fees for services) for 2011/12 is £597m. This is £4.8m lower than the previous year’s figure, £601.8m.

The Budget Report is due to be put before the Full Council for approval on February 24.

Cheshire East Council Leader Wesley Fitzgerald said: “The Budget recognises the need to meet a rising demand for Council services – particularly those involved in care of the elderly, protecting and enhancing the lives of children and repairing and enhancing our winter-damaged roads – against a backdrop of the Government’s tightening of public sector purse strings.

“The Council is well prepared. We have restructured and transformed services to create real efficiencies over the last two years. This work continued over the autumn and early winter as the Cabinet and managers worked to deliver the Budget, while protecting frontline services.

“We believe changes can be made to increase accountability to the local area, its businesses and its citizens. We recognise that delivering high-value, low-cost council services is essential to this aim.”

Proposals in the Pre-Budget Report include:

● No increase in basic Council Tax levels for 2011/12 – securing extra Government 

   funding of £4.4m (equivalent to increasing Council Tax by 2.5 per cent);

● Raising about £2.1m by increasing taxes on second and long-term empty homes

    In Cheshire East – helping to boost moves to increase the number of empty 

    homes brought back into use to meet housing demand – reviewing single person    

    discounts on Council Tax and an increase in the number of homes built;  

● £10.1m investment in Adult Services – to meet rising demand for frontline services 

   and give older and vulnerable adults greater choice and control over their lives;

● £0.9m extra for Children’s Services – increasing budgets to provide care for 

   children;

● £3.9m savings from the Places Budget – including transforming the way 

   Council transport is run and improving refuse collection efficiency;

● £11.1m savings in efficiency measures including proposed changes to conditions 

    of employment, reducing agency staff costs, targeting procurement savings,   

    greater management efficiency, improving use of the Council’s estate and   

    increasing energy efficiency;

● No proposed Supplementary Business Rates levied in 2011/12.

Councillor Fitzgerald added: “Setting a Budget always needs balance and the Council must raise the necessary funds to meet the demands from service users. The authority’s spending is still based on the needs of local residents.

“Using Government comparisons, the spending power for Cheshire East Council is only £753.31 per head. This compares with an England average of £1007.21. Value in Cheshire East is already high but we will continue to do more.

“The Council will continue to engage with Government in this key year to ensure it recognises the potential in Cheshire East.

“I also look forward to continuing our work with local partners and businesses to maintain Cheshire East’s position as a prosperous place with great potential.”

The Budget Report follows a series of engagement events with key partners to more fully assess the impact of the Pre-Budget Report proposals presented last month.

Cheshire East’s Sustainable Community Strategy, ‘Ambition for All’, sets out a 15 year vision. The Budget Report outlines the Councils proposals that will support this vision.

The seven strategic priorities to achieve this vision are: to nurture strong communities; create the conditions for business growth; unlock the potential of our towns; support our children and young people; ensure a sustainable future; prepare for an increasingly older population; and drive out the causes of poor health.

Lisa Quinn, Cheshire East’s borough treasurer and head of assets, said: “The Council has managed an intense process to scrutinise the Budget proposals since June. I am satisfied that the final estimates, although ambitious, are robust.”

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