Decision details

The Corporate Director of Finance and Resources introduced a report from the Cabinet Member for Finance and Education on the proposed budget framework for 2012/13 which incorporated the following:

• The Medium Term Financial Strategy
• The level of savings already approved over the period 2012/13 - 2014/15
• The detailed annual revised estimates for 2011/12 and 2012/13
• The financial outlook for 2013/14 onwards
• The proposed level of Council Tax for 2012/13
• The Capital Programme
• The Prudential Indicators

The Corporate Director advised that the General Fund revised net budget for 2011/12 was £183.381m and the proposed net budget for 2012/13 was £177.379m.  The budget for 2012/13 incorporated a c£6m reduction in Central Government funding as well as other statutory, economic and demographic pressures but was mitigated by the budget savings agreed by Cabinet at its meeting on 14 December 2011 and other financial adjustments. 

The Corporate Director commented that difficult decisions had again had to be made by Members to ensure that the Council maintained a robust and balanced budget going forward which protected front line services as far as possible and provided value for money to residents.  The approach taken had also meant that it was possible for the Council to keep its Council Tax at the same level for a fourth consecutive year while at the same time implementing initiatives such as the London Living Wage which would benefit the Council’s lowest paid workers.

The proposed Capital Programme for 2012/13 to 2015/16 was c£459m and reflected the Council’s major programmes to expand school place provision and the regeneration of housing estates, which included the building of new Council homes.

In respect of the budget savings agreed by Cabinet on 14 December 2011, the Leader agreed to accept a supplementary paper, under the provisions of Section 100B(4)(b) of the Local Government Act 1972, in respect of the call-in of the specific proposal to delete the post of Divisional Director of Assurance and Risk Management as part of the Chief Executive’s senior management organisational review.  The matter was considered by the Public Accounts and Audit Select Committee (PAASC) at its meeting on 17 January 2012 who upheld the call-in and recommended the Cabinet to rescind its decision and commit to maintaining the post for at least two years.  PAASC did acknowledge, however, that in the event that it was necessary to achieve savings associated with this post it would support a proposal for a shared arrangement with another Council, along the lines of the arrangement with Thurrock Council in respect of the shared Divisional Director of Legal and Democratic Services role.  The Chief Executive referred to the rationale behind her reorganisation proposals and to the commitment that she had given at PAASC regarding the future arrangements that would ensure that the Council had in place robust assurance, compliance and risk management measures going forward.

Cabinet agreed:

(i)  To recommend the Assembly:

a.  To approve a revised revenue budget for 2011/12 of £183.381m as detailed in Appendix B to the report;

b.  To approve a base revenue budget for 2012/13 of £177.379m as detailed in Appendix C to the report;

c.  That the current surplus arising from additional specific grant income be held in the Contingency budget, pending the announcement of the top-slice requirement and to mitigate future risks;

d.  That the Statutory Budget Determination for 2012/13 reflect a freeze, for the fourth consecutive year, on the amount of Council Tax levied by the Council, along with a 1% reduction in the Greater London Authority precept;

e.  Approve the adjusted Medium Term Financial Strategy position for 2011/12 to 2014/15, which allowed for other known pressures and risks, as detailed in Appendix E to the report; and

f.  Approve the Council’s five-year Capital Programme as detailed in Appendix G.

(ii)  To confirm its decision taken on 14 December 2011 to delete the post of Divisional Director of Assurance and Risk Management as part of the budget savings for 2012/13;

(iii)  To note the capital accounting arrangements and the prudential indicator capital guidelines as set out in the report; and

(iv)  To note the continued need to identify relevant efficiency gains throughout the organisation.