Agenda item

(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 the report.