Introduction
The Council’s medium term financial strategy
2009 – 2012 updates the 2008 – 2011 strategy to take account of
changing circumstances, including the current economic downturn
which is expected to affect the Council for several years. It aims
to secure a forward looking approach and long term sustainability
in service provision. The financial strategy is driven by the
Council’s Corporate Strategy, which takes account of both local
improvement priorities and national priorities. The Corporate
Strategy therefore informs resource allocation, with changes to
allocations determined in accordance with policies and
priorities. The Council’s vision is to make the Borough
“cleaner, safer and more prosperous”. The Corporate Strategy is
linked with the Havant Borough Sustainable Community Strategy
prepared by the Havant Community Partnership.
This updated strategy concentrates on
principles that will provide a strong direction for the next three
years, subject to annual review.
The strategy does not represent a committed
budget but rather a framework within which decisions relating to
future service provision can be made.
Context
Havant Borough Council is not a
prosperous Council in terms of either capital or revenue
resources. This is because:-
(a) The
Council has relatively few assets or other financial investments
with revenue earning or sale potential e.g. land
and property holdings.
(b) The
Borough has, in comparison with most neighbouring authorities:-
- Higher proportions of low income
and benefits-dependent households
- An increasingly high percentage
of retired households
- Low skills levels
- Higher unemployment than the
Hampshire average
- Low average earnings compared
with national average
The Council has, for many years, been under
pressure to achieve budget reductions in order to set an acceptable
Borough Council Tax.
The Council has no long term external
borrowing. However, the Council has some borrowing for
capital purposes and will need to consider further borrowing, and
its revenue implications, each year during the period of this
strategy.
Government Grant meets 54% of the Council’s
net revenue budget but is set by government each year and does not
vary with spending. As a result a relatively small change in budget
of £82,300 will need to be supported by a 1% change in the Borough
Council Tax.
KEY FACTS
2009/2010 BOROUGH
COUNCIL
BUDGET
£18,053,500
2009/2010 BOROUGH
CHARGE AT BAND
D
£192.78
(£3.71 per week)
2009/2010 CHARGE AT
BAND D (AVERAGE
FOR ALL ENGLAND DISTRICT
COUNCILS)
£191.80
The Council’s revenue budget of £18,054 million in
2009/2010 is calculated as follows:-
Gross expenditure (net of government
subsidy towards Benefit payments)
£26.1 million
Service income (fees, prices, rents
etc.)
-£ 6.9 million
Specific government grants
-£ 1.1
million
------------------
£18.1 million
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FINANCIAL
STRATEGY 2009
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1
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To achieve an optimum balance between
relatively low costs, high productivity and successful
outcomes through continuous
improvement, a commercial approach and consideration of best value
procurement options including working with public, private and
voluntary organisations.
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2
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To align with the Council’s Corporate
Strategy and respond to our customers by moving financial resources
from lower corporate priorities to higher priorities.
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3
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To generate additional capital and
revenue income to support the objectives of the Corporate
Strategy.
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4
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To adequately maintain and where
possible enhance the Borough’s capital assets, guided through
capital and asset management strategies.
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5
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To meet the administration’s
aspiration for a nil Council Tax increase in the three year
period
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6
|
To manage the Council’s financial
resources well
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7
|
To maintain adequate
reserves
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A copy of the full Medium Term Financial Strategy is available
below in PDF format. It requires Acrobat Reader or equivalent
to read the PDF file:-