Agenda item

This report also includes the report “Council Plan Update 2010-11 Incorporating the Medium Term Financial Strategy 2010-11 to 2012-13” listed as Agenda Item 10.

The Corporate Director of Finance and Commercial Services (CDFCS) introduced the report by making a brief presentation covering:

 

• the background to a place survey carried out in 2009,
• the outcomes of that survey,
• Revenue Budget proposals for 2010/11,
• Council Tax,
• how the budget had been scrutinised, and
• the Alternative budget proposals (BNP)

 

Referring to the alternative budget proposals submitted by the British National Party (BNP) as presented as a supplementary report to the Council’s budget, the CDFCS confirmed that as the Council’s Section 151 Officer overall it was balanced and largely robust but she had previously made it known to the BNP Leader that there were areas within the budget that she would advise against implementing due to the severe service impact or erosion of base budgets.

 

Councillor Bramley, the Cabinet Member for Finance and Human Resources, introduced the budget proposals that were agreed by the Executive on 16 February 2010.  In presenting the detail he thanked the CDFCS and her staff for their support during the budget preparation process.

 

Councillor Bramley stated that in freezing the Council Tax for an unprecedented second consecutive year this Labour administration has delivered on its promises to the people of Barking and Dagenham.  The budget is balanced and robust and provides for a sound base to move forward in the difficult financial times ahead. 

 

It is recognised that the Council’s reserves need replenishing and this budget commences that process.  He spoke of his pride in the huge capital programme which commits the Council to investing a total of £394 million over the next three years.

 

This significant investment is only possible because of the careful financial approach taken by the Council over the past twelve months, and has enabled amongst other things the recommencement of a Council house building programme as well as major expenditure in the fabric of our school buildings, and in so doing creating new primary school places. 

 

Councillor Bramley referred to the superb nationally recognised Apprentice Scheme, the introduction of the Youth Access card, the support given to reduce domestic violence, as well as the three stars achieved in Adult Care as examples of how well this Council is doing and therefore it was with great satisfaction that he was presenting the budget to this Assembly for approval this evening.

 

Councillor Liam Smith in his capacity as the Leader of the Council, referring to the alternative proposals for the BNP, as he saw them, was pleased to see that the harebrained schemes dreamed up last year had now been dropped.  That said this BNP budget, which followed five days after the publication of the Labour budget, merely takes their Labour proposals with a few add ons.  He stated that it was not possible to keep tapping into reserves as the BNP suggests, but that what was needed was sustainable and robust budget planning for the next ten years, not the here and now that this alternative budget seeks to achieve.

 

He referred to the BNP suggestion of cutting back on the Building Schools for the Future Programme (BSF) and thereby putting at risk our children’s future.  He stated that their Capital Programme proposals included nothing to keep old people’s homes open nor any financial provision for St. George’s Day celebrations. 

 

Turning to the Council budget proposals, he was pleased to additionally announce provision within the overall budget as presented for every pensioner to receive free leisure centre access.  This will also include use of the Elderberry activities, which for some pensioners will mean a saving of up to £24 a week.  In addition, every young person at secondary school who achieves 80% plus school attendance will have an additional £10 added to their Youth Access card to spend on a wide range of youth related activities. 

 

In conclusion, he regarded this as one of the best budgets delivered by this Labour administration.

 

Councillor Bailey then presented the BNP alternative budget (which had been circulated to all Members on 23 February and tabled at the meeting) as an amendment to the Council budget.  He interpreted the comments of the Section 151 Officer as that of a robust and balanced budget.

 

There then followed a series of statements from Councillor Bailey, which the Chair interjected on as being party political and not related to the BNP’s budget proposals.

 

Councillor Bailey continued that the alternative budget aimed to ensure that over the next five year period the cost of Council Tax in Barking & Dagenham will eventually be the lowest in London.  The BNP proposed to set up Credit Unions, reduce the cost of meals on wheels, reverse the Council’s decision to impose car parking charges for staff, as well as the 1% increase in fees and charges, create additional work experience placements, increase funding to support the Drugs and Alcohol Action Team, direct investment for an additional ten Police Officers in the Metropolitan Police and more investment to fund improvements in playgrounds and enforcement teams.

 

Accepting the proposed £14 million savings identified in the Council budget the BNP’s additional investment proposals will amount to £5.1 million, which will be met through a range of saving proposals as set out in the report, and not by dipping into reserves.

 

Turning to the Capital Programme proposals Councillor Bailey fully supports the building of new Council housing in addition to which the BNP intends to set aside £4 million to purchase former Council properties.  The Programme also includes £0.5 million to fund an expansion of shopping parades in the Borough, the Council having made a hash, in his view, of both Barking Town Centre and Dagenham Heathway.

 

Considerable sums will be made to bring services back in house.  The BNP also propose to work with and assist people who find themselves redundant as is likely in the coming months following the General Election.  Linked to this, the BNP want to make it easier for businesses to set up in the Borough having seen lots of jobs lost at Fords and May and Bakers.

 

Councillor Bailey also hopes that buying in more Police Officers will help reduce crime in the Borough.  In concluding his comments he said that his Party would not pander to ethnic minorities, as it is such divisive policies, in his view, that lead to trouble in the first place.

 

Councillor Bramley in responding to the alternative budget proposals of the BNP suggested it was plagiarism of the Labour budget, lacked any substance and detail particularly in relation to how the significant levels of savings required would be achieved, such as deleting the Equalities and Diversity Team where there is no reference to how many posts will go or how the cost of redundancy will be met.

 

He reiterated the comments of the Leader of the Council that cutting back on BSF puts at risk the whole programme and our children’s future.

 

Referring to the BNP’s proposal to spend £250k on outreach programmes, Councillor Bramley asked who they would be reaching out to, and with reference to the £150k on enforcement, he asked what they were proposing to enforce.  He added that what was particularly striking was what is not in this

alternative budget.  He further asked whatever had happed to the caravan park or the special school?  He concluded that the budget is a joke, pathetic and laughable.

 

Councillor McCarthy in acknowledging that the BNP had at least made the effort to submit an alternative budget, albeit divorced from reality, questioned why the Conservative Group had not seen fit to do the same?

 

Councillor Justice felt that submitting an alternative budget was a pointless exercise as demonstrated by the BNP proposals.  Putting aside the political intention behind the question that he refused to rise to, he said that he was genuinely not opposed to the Council’s budget although he questioned the suggestion that a pensioner will on average save potentially up to £24 per week through the use of free leisure facilities, especially as most pensioners like himself can scarcely walk let alone pick up a racquet.

 

There then followed a general debate on the merits or otherwise of the alternative budget proposals with contributions from a number of Majority Group Members together with further comments from both Councillors Barnbrook and Bailey raising issues in relation to the Council’s budget proposals which were responded to by Councillor Liam Smith.

 

The Chair then invited Councillor Bailey to sum up his Party’s alternative budget.  He said Labour has been the party of government for fourteen years and it is now time for change.  The BNP budget is about change.  He again interpreted the S151 Officer’s comments as the budget being balanced and robust.  He said it promises safer streets, lower Council Tax and more money in the pockets of the working man.  It puts British businesses first and British people first.

 

The Chair then invited Councillor Bramley to sum up the Council’s budget.  Councillor Bramley firstly made reference to the question of compulsory redundancies that came up as a point in the budget debate – he explained that over two hundred people had applied for the Council’s voluntary redundancy scheme, and that the Council was working closely with the Trade Unions to offer voluntary redundancy, redeployment and/or retraining where practical.  Whilst no guarantees could be given, all efforts were being made to minimise the need for compulsory redundancies. 

 

Turning to the budget, Councillor Bramley said that the choice was clear - significant cuts over five years under the BNP or expansion under Labour.  The choice in May is that Labour will deliver, improving services in the Borough as it has for a long time, whilst the BNP will leap at the latest sound bite.

 

Councillor Little moved that the alternative budget be put to a recorded vote and this was supported by Councillors Liam Smith, R Gill and McCarthy. 

 

The alternative budget was then put to the vote and was lost as follows:

 

For:  Councillors Bailey, Barnbrook, Buckley, C Doncaster, S Doncaster, R Doncaster, Knight, Lansdown and Rustem

 

Against:  Councillors Alexander, Barns, Bramley, Carpenter, Connelly, Davis, Denyer, Fairbrass, Flint, N Gill, R Gill, Hemmett, Jamu, Justice, Little, McCarthy, McDermott, McKenzie, Obasohan, Poulton, Reason, Rush, L Smith, N Smith, Vincent, L Waker, P. Waker and White

 

Abstain:  None

 

 

 

Councillor McCarthy then moved that the Council budget be put to a recorded vote and this was supported by Councillors Liam Smith, Little and R Gill.

 

The Council budget was then put to the vote and was agreed as follows:

 

For:  Councillors Alexander, Barns, Bramley, Carpenter,  Davis, Denyer, Fairbrass, Fani, Flint, N Gill, R Gill, Hemmett, Jamu, Little, McCarthy, McDermott, McKenzie, Obasohan,  Poulton, Reason, Rush, L Smith, N Smith, Vincent, L Waker, P Waker and White

 

Against:  Councillors Bailey, Barnbrook, Buckley, C Doncaster, S Doncaster, R Doncaster, Knight, Lansdown, and Rustem

 

Abstain:  Councillors Connelly and Justice

 

The Assembly therefore agreed:

 

(1)  The Council Plan 2010/11 and the Medium Term Financial Strategy 2010/11 to 2012/13 which includes the:

 

·Capital Strategy;

·Reserves and Contingency Strategy;

·Budget options for 2010/11 and future years; and

·Investment decisions and assumptions.

 

(2)  The Capital Programme for 2010/11 to 2013/14 and Prudential Indicators for the Authority

 

(3)  The Revenue Budget for 2010/11 and the position on Reserves

 

(4)  The Statutory Budget Determinations and Amount of Council Tax for London Borough of Barking and Dagenham which equates to a 0% Council Tax increase for 2010/11, representing a freeze in Council Tax levels for the second year in succession.