Council agrees challenging budget package

Sevenoaks District Council has agreed a challenging budget package intended to solve its finance problems without having a major effect on its key frontline services.

The extensive three-year finance package, which will run from April 2005, was agreed by Full Council last Tuesday (16 November 2004) when all members had an opportunity to vote on the proposals. In all it will save £2.9m, equivalent to nearly 20% of the Council's overall budget.

The package, which was first proposed by the Council's Cabinet last month, was reviewed by the Overview and Scrutiny Board and following its comments, two changes were made to the package, including the Council's financial arrangements with the Sevenoaks Playhouse.

Historically the Council has used its reserves to help pay for its services, with a contribution in the current year of £1.6m. However, only £3m is now available to use in this way and if the reserves were spent at the current rate, they would be used up within the next two years. To ensure a sustainable future budget, the Council had no choice but to reduce its reliance on this method of funding.

The Council also has limited scope to raise additional income. It expects a below inflation increase in grant from Government (around 0.6%) and it will be required to restrict any increase in Council Tax.

As part of setting the budget, the Council consulted widely to establish its priorities. All Council services were scored against its priorities laid out in the Sevenoaks District Community Plan, which sets out a 10 year vision for the District.

Services were investigated to see if they could be provided in more efficient or alternative ways. The Citizens' Panel and local town and parish councils were consulted on these findings as part of the process. All District Councillors were consulted, both individually and through the Council's select committees.

The key points of the proposed budget are:

- £1.3m will be saved through reduced 'back-office' costs. This will include a reduction in management and central support costs

- A further £1.1m will be saved through efficiency improvements, income increases and alternative ways of delivery its services allowing the Council to continue to provide the current services at a reduced cost

- Additional resources will be invested in key local services, including refuse collection, recycling, street cleaning and community development services such as community safety. Resources will also be allocated to new services the Council has a legal duty to provide such as licensing

- More resources have also been allocated for those areas that need additional financing, namely the Housing Benefits, Environmental Health and Planning services

- The annual grant to Sevenoaks Playhouse will be £140,000 next year, reducing to £50,000 by the third year. In response to the consultations with the Playhouse, the Council will take over and restructure an existing loan, which the Playhouse has taken out, giving it a three year capital repayment holiday with the theatre only paying the interest on the loan during this period. This is a short-term solution which will support the Playhouse's business plan through improved cash flow over the three year period. The Council will review its level of funding in 2006 in consultation with the Playhouse.

Inevitably there will be some impact on frontline services and grants, but the Council has worked hard to keep these to a minimum.

Cllr Peter Coates, the Council's Cabinet Member with responsibility for finance, says: "The discussions on the budget were very general and I was delighted that with all the past consultations most of the detailed concerns were dealt with. The broad gist of the budget is to continue and enhance the main frontline services and reduce the backroom costs of running the Council, which we know to be the wishes of the electorate."

The formal budget for the next financial year will be set on 22 February 2005, which will include setting the Council Tax.


For further information please contact Daniel Whitmarsh on 01732 227414 e-mail daniel.whitmarsh@sevenoaks.gov.uk