Council Budgets & Spending

Thanet Spending Review – 2007/11 and key Budget proposals for 2008/09

Gearing up for our future

This section sets out our plans for managing the Council’s budget and how we intend to invest in our future, despite the tough financial pressures on us. The Council aims to provide value for money for our residents and the best possible level of services.  I welcome your views on them.

Four main themes dominate the Council’s Financial Strategy:

• Low levels of government grant – We are set to receive just a 1.5% increase in central government grant for 2008/09, well below the rate of inflation.  Given that central government grant accounts for 33% of our gross income, it is the most important figure in setting the Council’s budget.  A 1% loss of grant is the equivalent of 3% increase in our Council Tax. The lower the grant level, the greater the pressure to fund services from Council Tax or to cut services and costs.
• Low Council Tax – We have a declared policy of keeping Council Tax as low as possible.  Not increasing the Council Tax is virtually impossible, but we are trying to keep any annual increase at 4.5% or below.
• Investing in Thanet’s future – We know that Thanet is an area of great need with unique challenges and opportunities.  Few councils, for example, own a port and harbour and are also responsible for 26 miles of beautiful coastline, which can be enjoyed by residents and visitors alike.   The Council is committed to providing quality services that matter to residents.  This is why we have made major changes in our organisation of waste collection and street cleansing.  Our new Corporate Plan sets out over 80 specific projects to help Thanet be a better, more beautiful and more prosperous place to live in the years ahead.  But these projects need funding and these costs have been included in our budget planning this year. 
• Generating income – we believe that quality services are worth paying for.  Those who get the most benefit from a service should pay for it and, as a tourist area, we incur costs that many councils do not – so it is only fair that we generate income to reinvest in services.

This section paper sets out our draft budget package for next year – our response to the tough challenge placed before us by the Government’s Comprehensive Spending Review.   I welcome your views on our plans.

Martin Wise Cabinet Member for Finance, Customer Services and Improvement and Performance

Next: Key budget proposals 2008-9

Financial Services

E-mail:

accountancy@thanet.gov.uk

Tel: 01843 577000