Agenda item

THE COUNCIL'S BUDGET 2016/17

Decision:

Cabinet:

1. Considered the advice of the Chief Finance Officer as set out in Appendix H when it recommended the Council budget.

2. Approved the following budgets for 2016/17:

· The Council’s draft General Fund budget as set out in Appendix E, formulated on the basis of:

o An ELWA levy based on the anticipated budget and levy increase, and

o The other assumptions set out in the report.

· The delegated schools’ draft budget

· The capital programme as set out in Paragraph 3.28 of the report and Appendix I,

3. Delegated to the Chief Executive and Deputy Chief Executives the implementation of the 2016/17 capital and revenue proposals once approved by Council unless further reports or Cabinet Member authorities were required as detailed in the report.

4. Agreed that the Deputy Chief Executive Communities and Resources be authorised to allocate funding from the Capital contingency included within the draft capital programme.

5. Agreed that the relevant Cabinet Member, together with the Leader, be delegated authority to commence tender processes and accept tenders for capital schemes included within the approved capital programme.

6. Agreed that to facilitate the usage of unringfenced resources, the Chief Executive and Deputy Chief Executives would review any such new funds allocated to Havering; make proposals for their use; and get them approved by the Leader and the Cabinet Member for Financial Management.

7. Delegated to the Chief Executive and Deputy Chief Executives the authority to make any necessary changes to services and the associated budgets relating to any subsequent specific grant funding announcements, where delays might otherwise have an adverse impact on service delivery and/or budgetary control, subject to consultation as appropriate.

8. Approved the schedule of Fees and Charges set out in Appendix K, with any recommended changes in-year being implemented under Cabinet Member delegation.

9. Agreed that if there were any changes to the GLA precept and/or levies, the Chief Executive should be authorised to amend the recommended resolutions accordingly and report these to Council on 24 February 2016.

That in addition, Cabinet Recommends to Council:

10. The General Fund budget for 2016/17

· The Council Tax for Band D properties and for other Bands of properties, all as set out in Appendix E to the report, as revised and circulated for the Greater London Authority (GLA) Council Tax.

· The delegated schools’ budget for 2016/17, as set out in Appendix F of the report.

· The Capital Programme for 2016/17 as set out in paragraph 3.28 and supported by Annexes 2, 3 and 4 of Appendix I of the report.

11. That it pass a resolution as set out in section 3.32.5 of the report to enable Council Tax discounts to be given at the existing level

Minutes:

Councillor Roger Ramsey, Leader of the Council, introduced the report

The Leader reminded those present about the general economic and fiscal climate which the current budget had to address. He stated that the continuing Government policy of cutting funding to local authorities placed an ever increasing burden on them to deliver services with diminishing resources. This was the context within which the 2016/17 budget was being set and the report before Cabinet identified the Council’s overall policy direction, statutory duties and financial strategy.

The Council’s budget needed to reflect the level of funding allocated to it by the Government. Cabinet received reports in November and December 2015 which provided an update on developments at the national level and the consequential impact on local government funding and set out information on the financial position within Havering.

The November report also set out the Council’s long term financial strategy to manage the implications of funding reductions and cost pressures over the next three years. It contained specific proposals to bridge the funding gap for the next two years, but left a funding gap of £2.4m in 2018/19 which required further steps to be taken in order to close it.

A further report was submitted to Cabinet on 20 January 2016 which updated Members on the Local Government Financial Settlement, the impact on the proposed financial strategy for the coming financial year and the latest in-year financial monitor. The report informed Cabinet that the three-year funding gap had increased from £2.4m to £12.5m including £5.6m relating to 2016/17. The draft strategy recommended in the current report included a range of additional measures which were intended to bridge the gap for 2016/17. Further reports would be submitted to Cabinet during the course of 2016/17 to consider the options for bridging the gap for the financial year 2017/18 and beyond.

The current position was that there would be an increase in the Havering element of the Council Tax of 1.99% plus a 2.00% precept for Adult Social Care.

Final confirmation of the Greater London Authority (GLA) precept was expected at the meeting of the London Assembly which would take place on 22 February 2016. The Mayor had proposed a reduction in the current precept, as previously advised to Cabinet, and this had been the subject of a similar consultation process.

The Leader added that on the assumption that this was to be approved by the London Assembly, the combined band D figure would rise to £1,543.64 - an increase of 1.96%.

The Leader reported to Cabinet that the Council had received, in the previous days, notification of a Transition Grant in the order of £1.4 million for the current year and the year following. This would effectively mean that the reserves, which it appeared would need to be used, could now be left untouched.

Cabinet was also informed that the draft minutes from the Overview and Scrutiny Board’s consideration of the budget proposals had been received and the Leader said he was pleased to note that the Board, having deliberated over the report, had found nothing which it wished to bring to Cabinet’s attention. He thanked the Board for its review and added that there were undoubtedly areas which were in the appendices containing the cost-saving proposals from the various services, which Overview and Scrutiny might wish to examine in detail and, on behalf of the Executive, he welcomed its input. The draft minutes of the Overview and Scrutiny Board are attached to these minutes.

Reasons for the Decision

The Council was required to set a budget for 2016/17 and, as part of that process, undertake relevant consultation in respect of the proposals included within the budget.

Alternative Options Considered

There were no alternative options insofar as setting a budget was concerned. There were, however, options in respect of the various elements of the budget. These were considered in preparing the budget and covered such issues as alternative savings proposals, the totality of budgetary pressures and different levels of Council Tax.