SUMMARY

1. Part of the budget package for the year 2002/3 approved by the Council on 20 February was on reduction in net spending of £17,000 which related to assistance to Parish and Town Councils for example for grass cutting.

2. This followed discussion of the package at Select Committees and the Executive before final Council approval. Parish and Town Councils however, had to set their own precepts prior to the Isle of Wight Council setting its Council Tax. Therefore those local councils set their precepts before they could be aware of what package of measures IWC adopted in setting its budget.

1. Subsequently, representations have been received from local councils which have been unable to accommodate the change within their resources.

2. Therefore a search has been made for a one-off saving which would enable the £17,000 to be restored to Town and Parish Councils for the year 2002/3 in order to allow them time to adjust.

3. There has been an underspending of £25,000 in the budget for members’ allowances for the year 2001/2 and this could therefore be used as a means of giving Parish and Town Councils a year to plan for the changed arrangements for IWC assistance to them for grass cutting

OPTIONS

1 Do nothing

2 Use part of the underspending on members’ allowances in 2001/2 as a means of restoring assistance to Parish and Town Councils for 2002/3 only, in order to allow them to adjust to the changed arrangements from 2003/4.

RECOMMENDATIONS

Option 2

BACKGROUND PAPERS

Council Budget Papers

Letters received from various Parishes

Contact Point :John Pulsford, ( 823601

J PULSFORD

Strategic Director, Finance and Information and County Treasurer

R BARRY

Portfolio Holder - Resources