Councillor Damian White, Deputy Leader of the Council, introduced the report
Cabinet was reminded that when the Chancellor of the Exchequer presented his Autumn Statement to the House of Commons on 25 November 2015 it built on the previous announcements made in the Summer Budget and provided details of the spending reductions facing government departments for the next parliament. In the second term of office, the Chancellor was planning far deeper cuts than in any other major economy with Local Government at the forefront of any reductions.
The Local Government Financial Settlement (LGFS) was expected to be announced during the week commencing 14 December at which point the implications for Havering’s financial strategy would be considered further. It was planned that a detailed report would be presented to Cabinet on 20 January setting out the implications for Havering.
Reasons for the Decision
It was essential that the Council’s financial strategy took due account of Government plans and any other material factors where these were likely to have an impact on the Council’s financial position. The report represented a further significant step in developing the Council’s budget strategy for the next three years and reflected the expected continued Government approach of reduced levels of funding.
Other options considered:
None. The Constitution requires this as a step towards setting the Council’s budget.
Cabinet:
1. Noted the Government’s announcements affecting Local Government as set out in the Autumn Statement.
2. Noted that a more detailed report would be made to Cabinet in January 2016 following the publication of the Local Government Financial Settlement for 2016/17.
3. Noted that Councils would be permitted to increase Council Tax levels by up to 2% to meet the increasing costs of Adult Social Care.
4. Agreed to extend the budget consultation exercise to include consideration of an additional Council Tax increase of up to 2% for Adult Social Care.