Issue - meetings

A video highlighting the Borough’s key developments and initiatives during the year was shown before the Cabinet Member for Finance, Performance and Core Services introduced the Council’s proposed budget framework for 2020/21 which incorporated the following:

• The General Fund revenue budget for 2020/21
• The level of Council Tax for 2020/21
• The Medium-Term Financial Strategy (MTFS) for 2020/210 to 2023/24
• The draft Capital Investment Programme for 2020/21 to 2023/24; and
• An update on the Dedicated Schools Grant and Local Funding Formula for Schools.

The Cabinet Member provided the context to this year’s budget and specifically the Prime Minister recent announcement referred to in the Leader’s Statement about the so called ‘levelling up’ by redistributing monies through the review of the Fair Funding Formula. Based on an analysis of the implications of the government’s thinking conducted by the LGA it is suggested that despite being one of the most deprived communities in the country the Borough stands to lose more than £3m.

He outlined the challenges that Barking & Dagenham has faced over the decades and those currently as a result of the Government’s austerity measures over the past ten years which in stark terms shows that for every £1 of funding available in 2010 we now have 33p to meet our needs. Viewed against the backdrop of some of the lowest land values in London, the second highest population growth in London and with one of the youngest boroughs in the country means local residents continue to face huge challenges in terms of unemployment, poor educational attainment as well as chronic health outcomes.

Turning to this year’s budget proposals the Cabinet Member explained that whilst the Council strives to deliver basic services like collecting rubbish and fixing potholes, its biggest costs concern social care with out of every £1 spent 70p going towards supporting the elderly and vulnerable children who cannot live at home with their families. The Council’s social care budget has fallen by £8m since 2016 and the overspend on children in care is on par with London as a whole. Whilst Barking and Dagenham is doing more with less money the budget situation coupled with increasing pressure on the NHS means social care services are increasingly needing to step in. On top of this are mounting pressures in other services such as housing and homelessness.

For more than a decade the government has made huge cuts to the Council’s funding and whilst for many years a council tax freeze was maintained the cumulative impact of the freeze has eroded the tax base to the extent that for every £1 the Council spends only 16p is generated from Council Tax.

Nonetheless without it the Council would struggle even more to provide services, and therefore it was proposed to increase Council Tax by 3.99%. which included 1.99% for general Council services raising an additional £1.2m, plus a further 2% specifically ring-fenced as an adult social care precept which overall represented an increase of 95p per week for the average family in  ...  view the full minutes text for item 55

The Cabinet Member for Finance, Performance and Core Services introduced the Council’s proposed budget framework for 2020/21 which incorporated the following:

·  The General Fund revenue budget for 2020/21;

·  The level of Council Tax for 2020/21;

·  The Medium Term Financial Strategy (MTFS) for 2020/210 to 2023/24;

·  The draft Capital Investment Programme for 2020/21 to 2023/24; and

·  An update on the Dedicated Schools Grant and Local Funding Formula for Schools.

The Cabinet Member stated that, notwithstanding the fast-growing population and huge increases in demand for services, the Council must strive to attain its vision of a Borough where people thrived and were proud to live.

The Cabinet Member for Educational Attainment and School Improvement referred to the need to top-slice the schools funding block and the pressure that would create, particularly in special schools.  She also referred to the fluctuations in school numbers, largely stemming from new housing developments in the Borough.

Members discussed the social impacts of the Government’s austerity measures, including extortionate rents, poverty and inadequate support for schools and the challenges these posed to the Council and its partners in meeting residents’ needs.

Cabinet resolved to recommend the Assembly to:

(i)  Approve a base revenue budget for 2020/21 of £155.796m, as detailed in Appendix A to the report;

(ii)  Approve the adjusted Medium Term Financial Strategy (MTFS) position for 2020/21 to 2023/24 allowing for other known pressures and risks at this time, as detailed in Appendix B to the report, including the additional cost of borrowing to accommodate the capital costs associated with the implementation of the MTFS;

(iii)  Delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Performance and Core Services, to finalise any contribution required to or from reserves in respect of the 2020/21 budget, pending confirmation of levies and further changes to Government grants prior to 1 April 2020;

(iv)  Approve the Statutory Budget Determination for 2020/21 as set out at Appendix C to the report, which reflects an increase of 1.99% on the amount of Council Tax levied by the Council, an Adult Social Care precept of 2.00% and the final Council Tax proposed by the Greater London Assembly (3.6% increase), as detailed in Appendix D to the report;

(v)  Note the update on the current projects, issues and risks in relation to Council services, as detailed in sections 9-12 of the report;

(vi)  Approve the Council’s draft Capital Programme for 2020/21 totalling £318.006m, of which £72.540m are General Fund schemes, as detailed in Appendix E to the report;

(vii)  Approve the Flexible Use of Capital Receipts Strategy as set out in Appendix F to the report;

(viii)  Note the update on Dedicated Schools Funding and approve the Local Funding Formula factors as set out in section 15 and Appendix G; and

(ix)  Note the Chief Finance Officer’s Statutory Finance Report as set out in section 15 of the report, which includes a recommended minimum level of reserves of £12m.