Assembly received and noted the report of the Cabinet Member for Finance and Education, introduced by the Corporate Director of Finance and Resources on the proposed budget framework for 2012/13 which incorporated the following:
The Corporate Director gave a short presentation. She advised that the General Fund revised net budget for 2011/12 was £183.381m and the proposed net budget for 2012/13 was £177.379m. The budget for 2012/13 incorporated a c£6m reduction in Central Government funding as well as other statutory, economic and demographic pressures but was mitigated by the budget savings agreed by Cabinet at its meeting on 14 December 2011 and other financial adjustments.
The Corporate Director 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 a fourth consecutive year while at the same time implementing initiatives such as the London Living Wage which would benefit the Council’s lowest paid workers.
The proposed Capital Programme for 2012/13 to 2015/16 was c£459 and reflected the Council’s major programmes to expand school place provision and the regeneration of housing estates, which included the building of new Council homes.
In the absence of the Cabinet Member for Finance and Education, the Cabinet Member for Regeneration advised that whilst the Council had faced budget cuts of £20m, we were spending less on support services, especially IT and continued to work jointly with other local authorities to reduce cuts which would limit the impact on services for the public.
Referring to cuts in back office staff, the Cabinet Member placed on record his gratitude to the people who had lost their jobs despite the good work that they had put into this community.
He further thanked:
o the Trades Unions for the work that they had done for their members,
o the Councillors who had taken part in the consultation process; and
o the members of the public who had attended meetings held by the Leader and Deputy Leader of the Council.
Despite the severe cuts, the Cabinet Member said that the Council's key priorities were being maintained:
· a good education, as exemplified by improving attendance at schools and local examination results
· a good household income, as shown by the Council's continued commitment to the opening of the Technical Skills Academy later this year
· a good home, as shown by the continued regeneration in the borough
He noted that the priority for raising household incomes in this economic climate was difficult, but that to drop that priority would be to let down the aspirations of our residents.
This would be the fourth consecutive year that Council Tax had not been increased as the Council sought to help households across the borough who struggled to balance their budgets on a daily and weekly basis.
In finalising the report, the Cabinet Member thanked the Corporate Director of Finance and Resources and her staff for their support during the budget preparation process, concluding that this budget would provide value for the future and that it gave hope to the residents of Barking and Dagenham.
The Chair invited Members to comment on the budget proposals.
Members noted their concerns that the budget savings had had a massive human cost, not only with regard to residents but also in staff job losses.
Councillor Inder Singh Jamu seconded the budget proposals, which were put to a vote by a show of hands.
Assembly agreed:
(i) A revised revenue budget for 2011/12 of £183.381m as detailed in Appendix B to the report;
(ii) A base revenue budget for 2012/13 of £177.379m as detailed in Appendix C;
(iii) That the current surplus arising from additional specific grant income be held in the Contingency budget, pending the announcement of the top-slice requirement and to mitigate future risks;
(iv) The adjusted Medium Term Financial Strategy position for 2011/12 to 2014/15 allowing for other known pressures and risks at this time as detailed in Appendix E;
(v) The Statutory Budget Determination for 2012/13 at Appendix D, which reflected a freeze, for the fourth consecutive year, on the amount of Council Tax levied by the Council, with a 1% reduction in the Greater London Authority precept approved by the London Assembly on 9 February 2012, as detailed in Appendix F;
(vi) The Council’s five-year Capital Programme as detailed in Appendix G.
The Corporate Director of Finance and Resources introduced a report from the Cabinet Member for Finance and Education on the proposed budget framework for 2012/13 which incorporated the following:
The Corporate Director advised that the General Fund revised net budget for 2011/12 was £183.381m and the proposed net budget for 2012/13 was £177.379m. The budget for 2012/13 incorporated a c£6m reduction in Central Government funding as well as other statutory, economic and demographic pressures but was mitigated by the budget savings agreed by Cabinet at its meeting on 14 December 2011 and other financial adjustments.
The Corporate Director 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 a fourth consecutive year while at the same time implementing initiatives such as the London Living Wage which would benefit the Council’s lowest paid workers.
The proposed Capital Programme for 2012/13 to 2015/16 was c£459m and reflected the Council’s major programmes to expand school place provision and the regeneration of housing estates, which included the building of new Council homes.
In respect of the budget savings agreed by Cabinet on 14 December 2011, the Leader agreed to accept a supplementary paper, under the provisions of Section 100B(4)(b) of the Local Government Act 1972, in respect of the call-in of the specific proposal to delete the post of Divisional Director of Assurance and Risk Management as part of the Chief Executive’s senior management organisational review. The matter was considered by the Public Accounts and Audit Select Committee (PAASC) at its meeting on 17 January 2012 who upheld the call-in and recommended the Cabinet to rescind its decision and commit to maintaining the post for at least two years. PAASC did acknowledge, however, that in the event that it was necessary to achieve savings associated with this post it would support a proposal for a shared arrangement with another Council, along the lines of the arrangement with Thurrock Council in respect of the shared Divisional Director of Legal and Democratic Services role. The Chief Executive referred to the rationale behind her reorganisation proposals and to the commitment that she had given at PAASC regarding the future arrangements that would ensure that the Council had in place robust assurance, compliance and risk management measures going forward.
Cabinet agreed:
(i) To recommend the Assembly:
a. To approve a revised revenue budget for 2011/12 of £183.381m as detailed in Appendix B to the report;
b. To approve a base revenue budget for 2012/13 of £177.379m as detailed in Appendix C to the report;
c. That the current surplus arising from additional specific grant income be held in the Contingency budget, pending the announcement of the top-slice requirement and to mitigate future risks;
d. That the Statutory Budget Determination for 2012/13 reflect a freeze, for the fourth consecutive year, on the amount of Council Tax levied by the Council, along with a 1% reduction in the Greater London Authority precept;
e. Approve the adjusted Medium Term Financial Strategy position for 2011/12 to 2014/15, which allowed for other known pressures and risks, as detailed in Appendix E to the report; and
f. Approve the Council’s five-year Capital Programme as detailed in Appendix G.
(ii) To confirm its decision taken on 14 December 2011 to delete the post of Divisional Director of Assurance and Risk Management as part of the budget savings for 2012/13;
(iii) To note the capital accounting arrangements and the prudential indicator capital guidelines as set out in the report; and
(iv) To note the continued need to identify relevant efficiency gains throughout the organisation.