New cash plan under scrutiny
Conservative members of Staffordshire County Council have called in the authority's financial strategy for the next three years for scrutiny.
Conservative members of Staffordshire County Council have called in the authority's financial strategy for the next three years for scrutiny.
A debate on the medium term financial strategy will take place at the council's corporate policy scrutiny and performance committee on Monday. Tory group leader Councillor Philip Atkins is concerned that the rising inflation rate will impact on the council's strategy. Councillor Atkins says that the increases in grant for 2009-2010 and 2010-2011 from the Government have been set at 2.8 per cent and 2.6 per cent.
He said that current inflation rate was running at 3.8 per cent.
"Demands on council services could rise while increases in price inflation, particularly for energy and fuel, will increase pressure on the budget," he said.
Councillor Atkins is also worried about the risk to budgets of the costs of the council's job evaluation programme.
He said he was concerned that no account was being taken of the need to adjust for when the cost of the procedure is finalised and that the impact on school staff was not built into the financial strategy.
Councillor Atkins said that the Building Schools for the Future programme, pay increases and changing interest rate could also impact.
His group is asking for decisions being taken by a service review board set up by the controlling Labour group to be taken to either the cabinet or corporate scrutiny committee before being implemented.
Councillor Mark Winnington said that the board had the ability to commit the council large expenditure.
Councillor Robert Marshall said he was concerned that with the credit crunch the council would get less from selling off assets that it had expected.
The Labour group is aiming to find £14 million efficiency savings next year and £23 million in 2010-2011.
Council leader Councillor John Taylor has said budget targets for 2011-2012 will be set when the impact of job evaluation is known and the costs of the Building Schools for the Future and waste private finance initiative are confirmed.
