The grant settlement received from the Government for 2005/06 is better than expected, an increase of 3.96%.

 

This will help the Council to meet higher pay and pension costs, a substantial increase in energy costs (due to global issues), higher than expected expenditure on recycling and the net costs of new licensing regulations. In addition, to help balance the budget, the triennial increase in car park charges and the good investment income have been taken into account, together with the higher income from planning fees.

 

The current year is expected to outturn within budget and compared to the planned use of reserves of £57,000 for one-off items, we now expect to add some £19,000 to reserves - an improvement of £76,000, which equates to a variance of less than 1% from the planned position.

 

The Borough Council continues to operate with a delicate political balance. It is Labour led, but not Labour controlled. Nonetheless, there has been a continued constructive approach and with the support of some of the minority groups the Council has worked for the benefit of the Community.

 

The Council is required to ensure its budget position is sustainable in the medium term. We are forecasting a budget shortfall over the next few years, mainly due to reducing interest income, as resources are used to finance capital investment projects.

 

Efficiency improvements are now a Government requirement. The Council will achieve these efficiencies and in that process we will bridge the anticipated budget shortfall. Following the setting of this Budget, we agreed the first year's programme of efficiency gains and broad areas of search for future years, in March 2005.

 

After the consultation period, the Board recommended a number of items that were approved by Council, for the 2005/06 Budget. These included increases in grants for Nantwich Museum and the Citizens Advice Bureau, a budget for the trial of a new recycling scheme and the establishment of a reserve to support the Safer Communities Partnership in respect of alley-gating schemes.

 

The Budget has been balanced by a rise in Council Tax of 5%, which equates to an increase of £6.63 per annum for a band D taxpayer. In fact, as most of the properties in the Borough fall in a band below D, the increase is even less in cash terms, for most people.

 

This will enable the Council to continue to improve the quality of life for people of the Borough and will provide a good base for the forward budget plans for a good Council.

 

March 2005