Agenda item

Councillor Roger Ramsey, Cabinet Member for Value, introduced the report.

 

The report before Cabinet members outlined the context within which the 2012/13 budget had been set and identified the Council’s overall policy direction, statutory duties and financial strategy.

 

The Council’s budget reflected the level of funding allocated to it by the Government.  Since the General Election, the Coalition Government had made a series of announcements, recently culminating with the announcement of the provisional Local Government Settlement.  This was expected to be the last such announcement under the existing funding regime.

 

In anticipation of the changes that the various announcements had brought about, and in response to the Emergency Budget announced in 2010, Cabinet previously agreed a range of savings proposals in July 2010, and again in July 2011, designed to deliver savings approaching £36m.  These proposals were in the process of being implemented, subject to consultation where appropriate.

 

The provisional settlement had been announced on 8 December, details of which were included in the previous report to Cabinet.  In the light of the ongoing financial climate, information on a small number of budget pressures and savings proposals had been released for formal consultation in January and as part of this process, was submitted to the joint Overview and Scrutiny Committee.  The results of the consultation were set out in the report.  Subject to any further changes made by Cabinet arising from the consultation and scrutiny, the report set out the factors being recommended for inclusion within the 2012/13 budget.

 

The report explained that the anticipated position was that there would be no increase to the Havering element of the Council Tax, based on the assumptions regarding the East London Waste Authority (ELWA) levy as set out in the report. In a supplementary information report circulated in advance of the meeting, Cabinet members were informed that the final ELWA budget had changed from that previously indicated.  It was noted that the final budget showed no overall increase in the levy, whereas it had previously been expected that there would be an increase in the region of 4-5%. Set against the Cabinet report, this meant a reduction £438k in the forecast ELWA levy.

 

In addition, final confirmation of the proposed Greater London Authority (GLA) precept had been received subsequent to the issuing of the Cabinet report. The Mayor had announced that he intended to reduce the GLA Band D figure by 1%.  This would produce a GLA precept for residents of the 32 London Boroughs in 2012/13 as £306.72 per Band D property, a reduction of £3.10.

 

A revised version of the levies summary, Appendix D and Council Tax statement were included in the supplementary information report to Cabinet members.

 

With the revisions as detailed above, there would be a 0.21% decrease in Council Tax. The revised band D figure would remain at £1,501.90.

 

The report also provided details of the various components of the budget with associated appendices.

 

 

 

 

Reasons for the Decision:

The Council is required to set a budget for 2012/13 and, as part of that process, undertake relevant consultation in respect of the proposals included within the budget.

 

Alternative Options Considered

There are no alternative options in so far as setting a budget is concerned.  However, there are options in respect of the various elements of the budget.  These are considered in preparing the budget and cover such things as alternative savings proposals, the totality of budgetary pressures and different levels of Council Tax.

 

Cabinet:

 

A – In view of the need to balance the Council’s policies, statutory requirements, government initiatives, inspection regimes and Council Tax levels:

 

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

 

2.         Considered the comments received during the consultation exercise with the Joint Overview and Scrutiny Committee the details of which were set out in Appendix J of the report.

 

3.                  Approved the Council’s General Fund draft budget as set out in Appendix E of the report and in the Supplementary Information report, formulated on the basis of:

 

·       the budget adjustment itemsshown at Appendix F

·       the other assumptions set out in the report.

 

4.                  Approved the delegated schools’ draft budget as set out in Appendix E.

 

5.                  Approved the establishment of the Special Corporate Budget Provision as set out in paragraph 3.15.8 of the report

 

6.                  Agreed to delegate to the Chief Executive and Group Directors to make any necessary changes to service and the associated budgets relating to any subsequent specific grant funding announcements, where delays might otherwise adversely impact on service delivery and/or budgetary control, subject to consultation as appropriate.

 

7.                  Agreed to delegate authority to Group Directors for the approval of any spending plans for new sources of funding where these exceed £250,000, in consultation with the relevant Cabinet Member.

 

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.                  Approved the Capital Programme for 2012/13 as set out in the report and Appendix I. 

 

10.              Agreed to delegate authority to the Chief Executive and Group Directors to implement the 2012/13 capital and revenue proposals once approved by Council unless further reports or Cabinet Member authorities were required as detailed.

 

11.              Agreed that information be made available to members of the public, staff, trade unions, etc, explaining the decisions made by Cabinet, and the final decision on the Council Tax setting.

 

12.              Agreed to delegate to the Cabinet Member Value and the relevant service area Cabinet Members authority to commence tender processes and accept tenders where these relate to Capital schemes within the Capital Programme.

 

13.              Agreed to delegate to the Chief Executive authority to consider the comments of the trade unions and to reflect any changes and/or comments in the recommendations to Council.

 

B - Agreed:

 

1.                  To recommend to Council the General Fund budget, and the Council Tax for Band D properties, and for other Bands of properties, as set out in the Appendices to the Cabinet report and the Supplementary Information report, as revised and circulated for the Greater London Authority (GLA) Council Tax.

 

2.                  To recommend to Council the delegated schools’ budget, also as set out in Appendix E.

 

3.                  To recommend to Council for adoption the budget strategy statements set out in Appendix B.

4.                  To recommend to Council that a resolution be passed based on the proposals as set out in this report in order to set the Council Tax as set out in the Supplementary Information to the Cabinet report.

5.                  To recommend to Council to pass a resolution as set out in section 8.4 of the Cabinet report to enable Council Tax discounts to be given at the existing level.

 

6.                  To recommend to Council the Capital Programme for 2012/13 as set out in Appendix I.

 

7.                  Recommend to Council to agree that the Capital Programme be expanded for schemes during the year which are funded via external funding under the authority of the Cabinet Member Value and the relevant service area Cabinet Members.

 

C - Noted:

 

1.                  The monitoring arrangements for 2012/13.

 

2.                  That further reports on the proposed new funding system, based on the localisation of business rates, will be brought to Cabinet as further information becomes available.

 

3.                  The prospects for 2013/14 and beyond, which indicate a very challenging financial environment still lies ahead, with little indication of any significant change, and that the need for continued financial prudence is especially important.

 

4.                  That supplementary information will be provided to Cabinet where information is awaited, such as from external bodies such as the GLA and the other levying bodies.

 

5.                  That any further reductions in grant funding introduced by the Government subsequent to the setting of the budget will be reported back to Cabinet, together with any consequent recommendations on maintaining financial stability.

 

6.                  That a further report will be brought to Cabinet setting out detailed plans for investment in primary school places.

 

7.                  That the Government has provisionally set the multiplier for National Non Domestic Rate at 45.8p in the pound standard and 45.0p in the pound for small businesses.

8.                  The effect of Council Procedures with regard to the moving of any amendment to the Council Tax Setting report.

 

9.                  That consultation with the Trades Unions will continue in respect of any proposals within the Budget that have an impact on staff. 

 

10.              That service budgets would be adjusted to reflect latest inflation estimates.

 

11.              The virement and contingency rules set out in Appendix G.

 

12.              That the expected one-off New Homes Bonus grant funds will be used to finance further Streetcare works and Business Investment activity.

 

13.              That any reductions in the expected level of the levies would be applied in a similar manner.

 

14.              The indicative Capital Programme for 2013/14 to 2014/15 as set out in the report and Appendix I.

 

15.              That the Treasury Management Strategy was presented to Cabinet concurrently with this report as a separate agenda item.

 

16.       That Midnight on Monday 13^th February 2012 is the deadline for amendments to the Council Tax Setting and Budget Report.