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City of York Council's Cabinet will consider proposals for the authority's 2012-2014 budget later this month (14 February).
For the first time the Cabinet is proposing to set a two year budget, providing stability and security for council services, residents and council-funded organisations. It will involve a series of prudent decisions, intended to put the council on a sustainable financial footing whilst protecting the most vulnerable residents at a time of austerity.
It is also set to approve a new capital budget, which will include a range of significant investments for the city, including major investment to boost jobs and economic growth in the future.
This budget round is one of the toughest for a generation, with the council proposing savings of £19.7m over the next two years as a result of a reduction in Government grant funding.
Additional unavoidable pressures driving the savings requirements include:
- Continued increases in the number of customers requiring the council's support as a result of the city's ageing population.
- A significant increase in the number of children requiring the council's care.
- Waste -dealing with Landfill Tax requirements.
- Fuel and Energy costs.
The proposals include increasing the budget for Adult Social Care by £1.5m, adding £0.5m to Children's Social Care budget and allocating £0.1m towards the creation of a Quality Bus Contract, supporting the council's key priorities.
To fund these and other initiatives, the Cabinet will consider plans to increase the Council Tax by 2.9 per cent in 2012/13. This would be equivalent to an increase of 54 p per week for residents living in Band C properties (the majority of homes in York), or 61p for those in a Band D property
The Cabinet will also consider plans for the 2012/14 capital budget, which include a range of major investments including funding to assist the Museums Trust and the Theatre Royal develop major capital schemes, maintenance of the city walls, and the biggest replacement of streetlights in York since the 19th century.
Within the Capital Strategy the Cabinet will consider the creation of a new Economic Infrastructure Fund (EIF) totalling £28.5m, to 'kick start' initiatives that support York's economy, creating jobs and securing investment. The fund will be used to support better public transport, including the new Park & Ride sites at Askham Bar and Poppleton; rolling out the successful city centre wi-fi trial, and improving the city centre environment; and provide targeted support to businesses and attracting inward investment.
The fund will be created from a mix of new homes bonus grant (£8.5m), and borrowing (£20m).
A final decision on the Council Tax for 2012/13 will be made by Full Council on Thursday 23 February.
http://www.york.gov.uk/news

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