Agenda item

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

Cabinet was informed that the report before it outlined the context within which the 2015/16 budget was being set and 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 May and September 2014 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 September report also set out the Council’s long term financial strategy to manage the implications of funding reductions and cost pressures over the next four years.  It contained specific proposals to bridge the funding gap for the next two years and further proposals were needed to move the Authority towards a balanced four-year budget.

A further report was made to Cabinet on 21^st January 2015 which updated Members on the Local Government financial settlement, the progress of the corporate budget and the proposed financial strategy for the coming financial year, the latest in year financial monitor and feedback on the public consultation to the proposals affecting services which were included in the September report.  A Special Cabinet was held on 4^th February 2015 which considered the responses to the budget consultation and more specifically the impact on three of the savings proposals.  These proposals were considered at this special meeting were reflected in the draft strategy and budget proposals.

The current position was that there would be an increase in the Havering element of the Council Tax of 1.993%, which was in line with the assumptions in the approved financial strategy.

Final confirmation of the Greater London Authority (GLA) precept was expected at the meeting of the London Assembly on 23^rd February 2015.  The Mayor had proposed a small reduction in the current precept, as previously advised to Cabinet, and this had been the subject of a consultation process.  There were no known changes to the GLA position as reported during the Cabinet meeting and if this were to change an update would be provided for the Council meeting.

On the assumption that this will be approved by the London Assembly, along with the proposed increase of 1.993% in the Havering share, the band D figure would increase to £1,514.00 an increase of 1.326%.

The report provided comprehensive details of the various components of the budget within its appendices.

Reasons for the Decision

The Council was required to set a budget for 2015/16 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 in so far as setting a budget was concerned.  However, there were options in respect of the various elements of the budget.  These were considered in preparing the budget and covered such things as alternative savings proposals, the totality of budgetary pressures and different levels of Council Tax.

In view of the need to balance the Council’s policies, meet demand for statutory services, government initiatives, inspection regimes and Council Tax levels, Cabinet:

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

2.            Considered the comments in the report on changes to the budget resulting from the consultation exercise, which were reviewed by the Overview and Scrutiny Board on 5^th February 2015 and attached as Appendix J to the report, when it recommended the total Council budget.

3.            Recommended to Council the following budgets for 2015/16:

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

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

§    The other assumptions set out in this report.

·                     The delegated schools’ draft budget

·                     The capital programme as set out in Annexes 2, 3 and 4 of Appendix I of the report,

4.            Delegated to the Chief Executive and Group Directors to implement the 2015/16 capital and revenue proposals once approved by Council unless further reports or Cabinet Member authorities were required as detailed in the Council’s Constitution.

5.            Agreed that the Group Director Communities and Resources in consultation with the Leader be authorised to allocate funding from the Capital contingency included within the draft capital programme.

6.            Agreed that to facilitate the usage of unringfenced resources, the Chief Executive and Group Directors will have delegated authority to review any such new funds allocated to Havering, make proposals for their use for approval by the Leader in consultation with the Cabinet Member for Financial Management.

7.            Delegated to the Chief Executive and Group Directors the authority 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.

8.            Approved the schedule of Fees and Charges set out in Appendix L of the report, 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 be authorised to amend the recommended resolutions accordingly and report these to Council on 25^th February 2015.

10.         Approved the Asset Management Plan as set out in Appendix M of the report.

Cabinet:

11.         Recommended to Council, subject to recommendation 3 above, the following:

·                     The General Fund budget for 2015/16.

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

·                     The delegated schools’ budget for 2015/16, as set out in Appendix F of the report.

·                     The Capital Programme for 2015/16 as set out in Annexes 2, 3 and 4 of Appendix I of the report.

12.         Recommended to Council that it pass a resolution as set out in section 3.33.4 of the report to enable Council Tax discounts to be given at the existing level.