The Performance Plan 2006

The Council has approved a strategy to guide its financial decision making over the period 2006/7 to 2010/11 in the light of the above developments. The main elements of the strategy are to: -

• Increase Council Tax by 4.9% per annum, being less than the 5% limit, which the Government has set for 2006/07.
• Continue to run down the revenue balances to a minimum of £1.5(m).
• Achieve substantial annual savings by reviewing all business processes to achieve efficiencies (savings of £271,000 pa by 2007/08) and by reducing the Senior Management Team (savings of £107,000 pa by 2007/08).
• Achieve further substantial savings (up to £900,000) from 2009/10.
• Allow no provision in future financial planning for any growth in expenditure either to meet inescapable commitments or develop services. All additional expenditure will need to be met from savings, efficiencies or external sources. Only inflation will be allowed for.
• Retain debt free status for the foreseeable future.
• Use capital receipts to support General Fund (GF) capital spend with the rest for the Housing Revenue Account (HRA) housing repairs programme.

This presents a difficult financial future for the Council. There will certainly be additional needs, which the Council must respond to given the changing and dynamic nature of the district and increasing government requirements. This will need to be met by savings on budgets, which are already among the lowest in the country.