Issue - meetings

A video highlighting the Borough’s key developments and during 2016 was shown before the Cabinet Member for Finance, Growth and Investment introduced the Council’s proposed budget framework for 2017/18 which incorporated the following:

·  the Medium Term Financial Strategy (MTFS) for 2017/18 to 2020/21;

·  the General Fund budget for 2017/18;

·  the level of Council Tax for 2017/18;

·  funding reductions to 2020/21

·  the financial outlook for 2018/19 onwards;

·  the Capital Programme for 2017/18 to 2020/21; and

·  a strategy for the Flexible Use of Capital Receipts.

The Cabinet Member explained that the budget proposals for next year and beyond moved away from the traditional ‘salami-slicing’ of service budgets and were a reflection of the Council’s new investment-led approach.  Due to historical deprivation factors, Barking and Dagenham was more reliant on Government grant than any other London Borough, with 84% of the Council’s funding coming directly from the Government.  However, the Government’s programme of austerity measures would mean that, by the end of the decade, Barking and Dagenham’s budget would have been halved since 2010.  The Cabinet Member commented that it was therefore essential for the Council to reduce its reliance on Government funding and generate new income opportunities through innovation and regeneration. 

The General Fund net budget for 2017/18 would be £144.686m, compared to the net budget for 2016/17 of £150.314m.  A 1.99% increase was proposed to the Local Authority Precept element of Council Tax and a further 3% Adult Social Care Precept increase.  The Cabinet Member confirmed that the revenue received from the 3% increase would be ring-fenced for adult social care services.  The Council had a growing population with more children and elderly people who needed the Councils support. 

The Cabinet Member also acknowledged that, in hindsight, the Council should not have frozen Council Tax for seven consecutive years up to 2014/15, as a 2% year-on-year increase over that period would have strengthened the Council’s base budget position by circa £15m.

The Cabinet Member highlighted some of the other key elements of the budget proposals which included plans to invest £750m over the coming years to provide new, affordable housing in the Borough, the creation of a £250m Investment Budget and £100m Land Acquisition Budget to support the Council’s investment and regeneration plans, together with a further £1/3 billion investment in the Borough’s schools, parks and street cleaning and enforcement services. 

The Cabinet Member confirmed that the Chief Executive had achieved his objective to reduce the cost of the ‘top 5%’ within the organisation by £1m from the baseline position as at May 2015, with permanent establishment costs set to be £1.036m lower on 1 April 2017.

The Assembly spoke in support of the proposals and in response to questions, the Cabinet Member advised that:

·  The proposed budget would enable enforcement officers to be more mobile and introduce mobile CCTV to help tackle fly-tipping in the Borough;

·  The Council had introduced a number of initiatives to help those on lower incomes, such as the sub-market rents for those in B&D  ...  view the full minutes text for item 60

The Cabinet Member for Finance, Growth and Investment introduced the Council’s proposed budget framework for 2017/18 which incorporated the following:

·  the Medium Term Financial Strategy (MTFS) for 2017/18 to 2020/21;

·  the General Fund budget for 2017/18;

·  the level of Council Tax for 2017/18;

·  funding reductions to 2020/21

·  the financial outlook for 2018/19 onwards;

·  the Capital Programme for 2017/18 to 2020/21; and

·  a strategy for the Flexible Use of Capital Receipts.

The Cabinet Member explained that the budget proposals for next year and beyond moved away from the traditional ‘salami-slicing’ of service budgets and were a reflection of the Council’s new investment-led approach.  Due to historical deprivation factors, Barking and Dagenham was more reliant on Government grant than any other London Borough, with 84% of the Council’s funding coming directly from the Government.  However, the Government’s programme of austerity measures would mean that, by the end of the decade, Barking and Dagenham’s budget would have been halved since 2010.  The Cabinet Member commented that it was therefore essential for the Council to reduce its reliance on Government funding and generate new income opportunities through innovation and regeneration.  One example was the creation of Be First, which would act as the conduit between the Council and developers for all aspects of the Council’s regeneration agenda.  On that issue, the Cabinet Member clarified that the sum of £3.54m had been set aside to fund the start-up costs of the new company.

The General Fund net budget for 2017/18 would be £144.686m, compared to the net budget for 2016/17 of £150.314m.  A 1.99% increase was proposed to the Local Authority Precept element of Council Tax and a further 3% Adult Social Care Precept increase.  The Cabinet Member confirmed that the revenue received from the 3% increase would be ring-fenced for adult social care services, although he commented that the responsibility for protecting the most vulnerable should rest firmly with the Government and not passed on to local taxpayers through the Council Tax.  The Cabinet Member also acknowledged that, in hindsight, the Council should not have frozen Council Tax for seven consecutive years up to 2014/15, as a 2% year-on-year increase over that period would have strengthened the Council’s base budget position by circa £15m.

The Cabinet Member highlighted some of the other key elements of the budget proposals which included plans to invest £750m over the coming years to provide new, affordable housing in the Borough, the creation of a £250m Investment Budget and £100m Land Acquisition Budget to support the Council’s investment and regeneration plans, together with a further £1/3 billion investment in the Borough’s schools, parks and street cleaning and enforcement services.  It was also noted that a report would be presented to the next meeting of the Cabinet on new plans to improve local neighbourhoods in the Borough.

Cabinet Members spoke in support of the proposals and particular reference was made to:

Ø  The Council’s vision for the future being underpinned by a sustainable budget and clear priorities, informed by the  ...  view the full minutes text for item 96