Issue - meetings

The Cabinet Member for Finance introduced the Council’s proposed budget framework for 2013/14 which incorporated the following:

• The Medium Term Financial Strategy (MTFS) for 2013/14 to 2014/15
• The proposed General Fund budget for 2013/14
• The proposed level of Council Tax for 2013/14
• The financial outlook for 2014/15 onwards
• The draft Capital Programme for 2012/13 to 2015/16

Providing an overview of the budget the Cabinet Member advised that difficult decisions had again had to be made by Members to ensure that the Council maintained a robust and balanced budget, which protected as far as possible front line services, at a time when local residents are demanding the most from their Council services.  Setting a two year budget has meant that it was possible for the Council to keep its Council Tax at the same level for the fifth and, subject to the prevailing financial circumstances at the time, a sixth consecutive year in 2014/15.

This year’s budget has been set against the backdrop of the most extensive consultation exercise carried out by the Council including examination by the five Select Committees, Leader and Deputy Leader question times, a separate question time with young people as well as use of Facebook, Twitter and the Council’s website.  The response to the consultation showed the Council had listened to its residents by withdrawing or amending a range of proposals including support to the voluntary sector, sheltered housing schemes, the reinstatement of green waste collections and the anti-social behaviour team, to name but a few.

The budget has been set in the context of further larger cuts in core government funding, and those cuts are much higher than the misleading headlines announced by the Coalition which, based on the funding formula imposed on local authorities, means that this Council is underfunded by approximately £2.5m.  Overall this Council has had to reduce its budgets over the four years 2010/11– 2014/15 to the order of £90m.  In addition the changes to benefits such as Council Tax, housing benefit, bedroom tax and UC will remove in the order of £50m from the local economy.

Coalition policies have led to high unemployment with record youth unemployment, the potential for a triple dip recession, downgrading of the triple A credit rating, zero growth, more borrowing and higher energy prices, all of which has led to a reduction in living standards. Add to this the cut in the rate of tax for high earners, the tripling of tuition fees, the cut in EMA, the waste of money spent on electing Police Commissioners, reforming the NHS and the train franchise debacle, means this Government should put its own house in order before attacking local authorities.

The Cabinet Member commented that rather than simply cutting budgets and services, the Council has looked to be innovative in how it provides services to deliver efficiency savings whilst still delivering the things that matter to residents, such as making better use of children’s centres, maximising the use of buildings and vehicles and income as well  ...  view the full minutes text for item 69

(The Chair agreed to allow a supplementary report to be considered at the meeting as a matter of urgency, under the provisions of Section 100B(4)(b) of the Local Government Act 1972, which gave an update on the implications for the Council of the final Local Government Finance Settlement announced on 4 February 2013.)

The Cabinet Member for Finance introduced the Council’s proposed budget framework for 2013/14 which incorporated the following:

• The Medium Term Financial Strategy (MTFS) for 2013/14 to 2014/15
• The proposed General Fund budget for 2013/14
• The proposed level of Council Tax for 2013/14
• The financial outlook for 2014/15 onwards
• The draft Capital Programme for 2012/13 to 2015/16

The Cabinet Member advised that the proposed General Fund net budget for 2013/14 was £173.4m, compared to a revised net budget for 2012/13 of £177.4m.  The revised sum of £173.4m reflected the savings proposals that had been agreed by the Cabinet at the meeting on 19 December 2012 (Minute 64) and also the updated position, as contained in the report that was tabled at the meeting, in respect of the New Homes Bonus grant allocation which had not been fully reflected in the provisional Local Government Finance Settlement on which the original report had been based.

The Cabinet Member 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 the fifth consecutive year while, at the same time, implementing new initiatives such as the new minimum pay rate referred to earlier in the meeting.

The Cabinet Member advised that the proposed Capital Programme of £426m reflected a revised projected spend in 2012/13 of £111m and new investment of £315m for the following three years, reflecting the Council’s commitment to major programmes such as the expansion of school place provision and the provision of new social housing within the Borough.

Cabinet agreed to recommend the Assembly:

(i)  To approve a base revenue budget for 2013/14 of £173.4m as detailed in the revised Appendix A tabled at the meeting;

(ii)  To approve the adjusted Medium Term Financial Strategy (MTFS) position for 2012/13 to 2014/15 allowing for other known pressures and risks, as detailed in the revised Appendix B tabled at the meeting;

(iii)  To approve the Statutory Budget Determination for 2013/14 as set out in the revised Appendix C tabled at the meeting, reflecting a freeze on the amount of Council Tax levied by the Council, plus the final precept to be announced by the Greater London Assembly on 25 February 2013 (1.2% reduction currently assumed), as detailed in the revised Appendix D tabled at the meeting; and

(iv)  To approve the Council’s Capital Programme for 2012/13 - 2015/16 as detailed in Appendix E (unamended) to  ...  view the full minutes text for item 93