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Maidstone Borough Council

Corporate Services Overview and Scrutiny Committee

Tuesday 5 January 2010

Budget Strategy 2010/11 Onwards

Report of: Acting Overview and Scrutiny Manager

1.      Introduction

1.1     The Council’s Constitution states, in the Budget and Policy Framework Procedure Rules, that “the Executive’s initial proposals [for the budget and policy framework] shall be referred to the relevant Overview and Scrutiny Committee, for further advice and consideration”.  The Committee must report to the Executive on the outcome of its deliberations, which the Executive must consider prior to submitting the proposals to Full Council.

1.2     The Terms of Reference of the Corporate Services Overview and Scrutiny Committee include carrying out the overview and scrutiny function in relation to “The preparation of the Council’s annual budget and to review and scrutinise the Council’s performance in relation to budgetary management”.  The Corporate Services Overview and Scrutiny Committee is therefore the appropriate Committee for the Budget Strategy to be considered by.

1.3     The Local Government Act 2000 highlights that the role of scrutiny in the financial process is to hold the Executive to account and ensure that decision-making is efficient, transparent and accountable.  The Centre for Public Scrutiny states that two principles of good public scrutiny are to provide the ‘critical friend’ challenge and to enable the voice and concerns of the public.  The Committee is responsible for ensuring that the budget strategy is in the interests of the community and is achieving the best value for money while planning for the future.

1.4     There are four key roles and areas where scrutiny can add value to the Council’s management of its finances:

·         Scrutiny can challenge whether the processes are effective and accessible: is there a level of integration between corporate and service planning and performance and financial management?

·         Scrutiny can challenge how resources are allocated, monitor how they are used and examine their impact.

·         It can test out and make explicit whether the Council is directing its resources effectively to meet its priorities and demonstrate whether it is achieving value for money.

·         Scrutiny and overview provide an additional and transparent challenge to the executive’s management of the Council’s finances[1].

1.5     As bullet points 1 and 3 above highlight, integration of strategic and financial planning is vital; the draft 2010/11 Update to the Strategic Plan 2009-12 will therefore be discussed at Agenda Item 8.

1.6     The Budget Strategy 2010/11 Onwards was considered by the Cabinet at its meeting on 16 December 2009; the Cabinet decision is attached.

1.7     A summary of the papers provided within this agenda is as follows:

2.      Recommendation

2.1     Members are recommended to interview the Leader of the Council, the Director of Resources and Partnerships and the Head of Finance with regard to the Budget Strategy 2010/11 Onwards and make recommendations on this as they see fit.