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The Chief Finance Officer is responsible for ensuring that a revenue budget and a Medium-Term Financial Plan for a three-year review period are prepared annually for consideration by the Executive, before submission to the Full Council.

Senior Managers will ensure the proper administration of the Revenue Budgets and the Capital Programme allocated to them. They will also ensure compliance with guidance and instructions issued by the Chief Finance Officer.

The current elements which comprise the budget setting process are as set out below:

The Executive must propose its budget to Council in accordance with the Budget and Policy Framework Procedure Rule.

The Council has to agree the level of Council Tax before 11th March each year and at the same time Full Council will also formally agree a legal balanced budget.

All capital receipts are to accrue to the Corporate budget in the first instance and are to be allocated on the basis of criteria corresponding to the capital strategy document.

All Directorates are entitled to bid for resources within the Corporate budget.

The Authority must decide the level of General Reserves it wishes to maintain as part of its financial planning before it can set the annual Council Tax. Reserves are maintained as a matter of prudence. They enable the authority to provide for unexpected events and thereby protect it from overspending, should such events occur. Reserves for specific purposes may also be maintained, such as the purchase or renewal of capital items. Accounting policies require these to be differentiated from Provisions, the latter being maintained to meet future expenditure arising from a past event the timing of which is uncertain and cannot therefore be contained in the annual budget.

To proceed with projects only when there is a budget within the agreed capital programme and adequate capital resources have been identified.

To obtain a supplementary capital budget where an individual Capital Scheme is projected to spend in excess of the original approval, or an additional scheme needs approval.A supplementary capital budget can be granted by the appropriate Corporate Director if the overspend is less than £1M – Financial Regulation B10.Executive approval must be obtained for Supplementary Capital budgets in excess of £1M. An explanatory report is required.