Councillor Roger Ramsey, Cabinet Member for Value, introduced the report
The report outlined the context within which the 2014/15 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. Since the General Election, the Government had made a series of announcements, with the most recent being the Autumn Budget Statement, which preceded the announcement of the provisional Local Government Settlement. Last year saw the introduction of fundamental and complex changes to the funding regime for local authorities, probably the biggest in 20 years. Whilst this reflected the localisation of responsibilities, it had also brought increased financial risk, and this had to be reflected as part of a robust budget setting process.
In anticipation of the changes that these 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 now largely implemented, with the final year of this programme being 2014/15.
The provisional Local Government Financial Settlement had been announced on 18th December. Details were included in the previous report to Cabinet. Consultation ended on 15th January and the final settlement had been expected two weeks later.
In the light of the on-going financial climate, and with the prospects for “more of the same” for the foreseeable future, information on a small number of budget pressures proposals had been released for formal consultation in January and as part of the process, was also submitted to the joint Overview and Scrutiny Committee. The results of this consultation were set out in the report. The report set out the factors being recommended for inclusion within the 2014/15 budget.
The Cabinet Member stated that the current position was that there would be no increase to the Havering element of the Council Tax which would enable the Council to take advantage of the latest Council Tax freeze grant on offer.
Final confirmation of the Greater London Authority (GLA) precept was expected at the meeting of the London Assembly on 14th February, which was after the date of the Cabinet meeting. The Mayor of London had proposed a small reduction in the current precept, as previously advised to Cabinet, and this had been the subject of a similar consultation process. Those changes to the GLA position were reported at the Cabinet meeting and an update would be provided for the forthcoming Council meeting.
On the assumption that the proposal was approved by the London Assembly, there would be a small overall reduction in Council Tax. The band D figure would then reduce to £1,494.18.
Reasons for the Decision
The Council is required to set a budget for 2014/15 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.
The Cabinet Member emphasised the challenging financial circumstances that the Council found itself in, particularly as further savings were required in the next financial year and beyond.
Cabinet decided that in view of the need to balance the Council’s policies, statutory requirements, government initiatives, inspection regimes and Council Tax levels, to:
1. Consider the advice of the Chief Finance Officer as set out in Appendix H when recommending the Council budget.
2. Consider the comments received during the consultation exercise, which were set out in the report from the Joint Overview and Scrutiny Committee, which was attached as Appendix J to the report, when recommending the total Council budget.
3. Approve the following budgets for 2014/15:
· 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
· the budget itemsshown at Appendix F, and
· the other assumptions set out in the report
· the delegated schools’ draft budget, the capital programme as set out in Annexes 2, 3 and 4 of Appendix I,
and delegate to the Chief Executive and Group Directors to implement the 2014/15 capital and revenue proposals once approved by Council unless further reports or Cabinet Member authorities were required as detailed.
4. 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.
5. Agree to make a one-off cash investment in the Pension Fund, as set out in Section 3.17 of the report, and delegate to the Leader and the Cabinet Member for Value, in consultation with the Group Director Resources, the final amount, which would be subject to the year-end position.
6. Approve the schedule of Fees and Charges set out in Appendix L, with any recommended changes in year being implemented under Cabinet Member delegation.
7. Agree that if there were any changes to the GLA precept and/or levies, that the Group Director Resources (in the absence of the Chief Executive) be authorised to amend the recommended resolutions accordingly and report these to Council on 26th February 2014.
8. To Delegate authority to the Cabinet Member for Individuals to approve the draft submission of the Better Care Fund application to NHS England by 14th February 2014, and the final submission on 4th April 2014.
9. To authorise the Chief Executive to make minor amendments to the Corporate Plan, as set out in the “Plan on a Page” agreed by Cabinet in January 2014.
In addition, Cabinet:
10. Recommends to Council, subject to recommendation 3 above, the following:
· The General Fund budget for 2014/15
· The Council Tax for Band D properties and for other Bands of properties, all as set out in Appendix E, as revised and circulated for the Greater London Authority (GLA) Council Tax.
· The delegated schools’ budget for 2014/15, as set out in Appendix E.
· The Capital Programme for 2014/15 as set out in Annexes 2, 3 and 4 of Appendix I.
11. Recommends to Council to pass a resolution as set out in section 8.4 of the report to enable Council Tax discounts to be given at the existing level