Agenda item

The Corporate Director of Finance and Resources (CDFR) gave a short presentation covering:

·  Policy house – the Council’s vision and priorities

·  Budget process successes

·  The Council’s plans for making savings

·  The impact of grant cuts

·  The risks in balancing this budget

The key messages from the presentation are that:

o  This is a balanced budget for 2011/12

o  The policy led approach will continue to ensure that the budget reflects Member and community priorities

o  The size of reductions creates risks in planned savings

o  The reserves position is better than last year but cannot be reduced due to budget risks

o  More savings will need to be found for 2012/13 onwards

o  New legislation (localism, housing, benefits) and the Olympics in 2012 will have an impact

Councillor Geddes, the Cabinet Member for Finance, Revenues and Benefits, introduced the budgetary framework for 2011/12 report, setting out:

Ø  the three year Council Plan

Ø  the Medium Term Financial Strategy and a two year summary level financial model for the council

Ø  a four year capital investment programme

Ø  detailed annual revenue estimates for revised 2010/11 and 2011/12, and

Ø  the proposed level of council tax for 2011/12

In presenting the detail the Cabinet Member thanked the CDFR and her staff for their support during the budget preparation process, as well as the Members and members of the public who had taken part in the consultation process.

He confirmed that the Council was facing cuts of £20.2 million over the next two years and noted that many officers had been lost to the Council through the voluntary redundancy scheme, which would inevitably lead to a higher workload for those remaining.

He was pleased to note that this Council is in the forefront in working across borough boundaries, as exemplified by the Assembly’s agreement to working with Thurrock Council as detailed earlier in this meeting and by the series of meetings that he and Councillor Channer had arranged with various other councils.

Despite the severe cuts imposed by the Coalition Government, the Cabinet Member was pleased to confirm that this Council:

-  is continuing to invest in our schools,

-  will be opening a  Skills Centre for 14-19 year olds,

-  has one of the best adult care services in the UK,

-  is working to reduce the housing waiting list,

-  will have a £9m sports facility in Mayesbrook Park as a result of the 2012 Olympics,

-  will be freezing Council Tax for a third consecutive year,

-  will not be closing libraries, and

-  will not be closing children’s centres or leisure centres.

In finalising the report, the Cabinet Member stated that Members and officers across all departments are taking collective responsibility for this balanced budget and that the Council’s priority is to build a fairer, prosperous and aspirational Barking and Dagenham.

The Chair invited members to comment on the budget proposals.

Members noted their concerns at the aggressive cuts imposed by the Coalition Government, in the face of which this Council has worked extremely hard to minimise job cuts in services that the people of this borough rely on.  None of the cuts are welcome but Members noted that this is a robust and balanced budget that had been scrutinised and analysed fully.

The Leader of the Council, Councillor Smith, seconded the budget proposals and congratulated the Cabinet Member on his excellent presentation.  Councillor Smith further thanked the people of this borough for supporting the Members at the May 2010 elections and noted that as a result of consultation (which he gave his word would continue) with the Trade Unions and members of the public, this budget had not occasioned ugly scenes of protest as had been experienced by other boroughs. 

The budget proposals were put to a vote by a show of hands and it was agreed unanimously to approve:

(i)  The Council Plan “Building a Better Life for All” as set out at Appendices A and B to the report;

(ii)  The Medium Term Financial Strategy for 2011/12 - 2013/14 as set out at Appendices C and D to the report;

(iii)  The Capital Investment Programme for 2010/11 - 2014/15 as set out at Appendix G to the report;

(iv)  The savings summary for 2010/11 - 2013/14, revised budget for 2010/11 and base budget for 2011/12 as set out at Appendices E, J and K to the report, resulting in a freeze in Council Tax levels for 2011/12 for the third year in succession;

(v)  The position on reserves as set out in paragraph 2.7 of the report;

(vi)  The Council’s Prudential Indicators as set out in Appendix H to the report; and

(vii)  The Statutory Budget Determinations and Amount of Council Tax for the London Borough of Barking and Dagenham for 2011/12 as set out at Appendix L (final precept confirmed by Greater London Council) and Appendix M to the report.