Cabinet proposes challenging budget

Sevenoaks District Council set its most challenging budget proposals to date intended to solve its finance problems without having a major effect on its key front line services.

The extensive three-year finance package, which will run from April 2005, was agreed by the Council's Cabinet at its meeting on Thursday 28 October 2004. In all it will save £2.9m, equivalent to nearly 20% of its overall budget.

Historically the Council has used its reserves to help pay for its services, with a contribution in the current year of £1.6m. However, this is unsustainable as only £3m is now available to use in this way. If the reserves were used 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 used defined methods and 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.

Those services that scored low or that had substantial budgets 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.

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 delivery methods 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

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

- The closure of the Edenbridge Local Office, although its planning and housing benefit advice services will continue as the Council looks to provide a convenient 'one stop shop' in the town

- The Council is seeking a number of alternative means of keeping Lullingstone Park Visitor Centre open. A final decision on its future will be decided in the new year

- The annual grant to Sevenoaks Playhouse will continue with £140,000 next year reducing to £50,000 by the third year

Cllr Peter Coates, the Council's Cabinet Member with responsibility for finance, says: "With a significant projected budget shortfall combined with limited scope to increase income and a Government grant expected to be well below inflation, we have had no choice but to take decisive action to balance our finances. This budget not only significantly reduces our back office costs, it goes towards solving our reliance on using our reserves and even provides additional resources for those services that our residents said were important to them. Regrettably, with such substantial savings, there will be some effect on our front line services but we have done our utmost to minimize the impact on our residents."

The budget will now be presented to the Council's Overview and Scrutiny Board on 2 November. The Cabinet will meet again on 4 November to discuss the Overview and Scrutiny Board's comments.

The final proposals will then be presented to Full Council on 16 November when all 54 councillors will have a chance to debate and vote on the budget.

The level at which the Council Tax will be set for the next financial year will take place during February 2005.