The Cabinet Member for Finance presented a report on the Council’s budget preparations for 2013/14 and beyond and, in particular, the budget savings options for 2013/14 and 2014/15, which had been subject to public consultation and Select Committee scrutiny in recent months.
The Cabinet Member referred to the Government’s relentless programme of cuts to public sector expenditure which had meant that the Council would have to have made savings of £90m over five years by 2014/15, a situation which could be further exacerbated when the Chancellor of the Exchequer announced the Local Government Finance Settlement for 2013/14 later in the day. The Cabinet Member commented that the Council had frozen its Council Tax for the past four years in recognition of the difficulties being faced by local residents as a result of the Government’s austerity measures and that the Council would do everything possible to continue to provide excellent services to the local community despite the huge pressures that were being faced.
With regard to the proposals within the report, the Cabinet Member explained that the package of savings for 2013/14 and 2014/15, totalling £24.378m, were necessary in order for the Council to set a balanced budget whilst maintaining a sensible level of reserves to protect against the very uncertain future. He stated that the Council would continue to lobby the Government in an attempt to secure the correct level of funding that the Borough’s growing population should attract; a fact borne out by the 2011 Census but so far ignored by the Government.
The Cabinet Member advised that the feedback from the consultation had been properly taken into account in the development of the final proposals and specific concerns expressed by the local community and via the Select Committee scrutiny process had resulted in several of the savings options being withdrawn or deferred. The Cabinet Member confirmed that he had personally read all the letters received as a result of the consultation and he placed on record his appreciation to Council colleagues and officers for their help in compiling the final package of proposals. The Divisional Director of Finance added that a separate, detailed consultation report would be circulated to Cabinet Members and published on the Council’s website prior to the formal budget setting in February 2013.
In respect of a letter distributed by the Chief Executive of the Council for Voluntary Services (CVS), the Cabinet Member for Crime, Justice and Communities referred to the next report on the agenda regarding voluntary sector funding and confirmed that the Council would seek to support the voluntary sector by utilising any reductions it was able to make to its London Councils grant contribution. The Cabinet Member for Housing also referred to the pressures placed on the Council as a result of temporary housing accommodation needs and the steps being taken by the Council to mitigate the costs and reduce the problem.
Cabinet agreed:
(i) To note the current projected financial position for the Council for 2013/14 and beyond as set out in the report;
(ii) To note the responses to the budget consultation process via:
a) the Select Committees, as set out in paragraph 5.4 and Appendix E of the report;
b) public consultation through Leader’s Question Time, the Council’s website, Facebook and Twitter, as set out in paragraph 5.5 of the report;
c) Trade union and staff consultation, as set out in paragraph 5.6 of the report.
(iii) In light of the above and having regard to the Equalities Impact Assessments at Appendix D to the report, to the implementation of the savings proposals for 2013/14 and 2014/15 as shown in Appendix B to the report;
(iv) To note that the following savings options were withdrawn or reduced as a result of representations made via the budget consultation exercise:
· ACS/SAV/07 - Voluntary Sector Grant
· ACS/SAV/22 - Broadway Theatre
· CEX/SAV/06 - Democratic Services Scrutiny Officer
· ACS/SAV/08 - Sheltered Housing
· ACS/SAV/10(f) - Employment Support Mental Health
· FIN&RES/SAV/21 - Economic Development Team
· H&E/SAV/19 - Green Waste
(v) To note that the following savings option was deferred from 2013/14 into 2014/15 pending further consideration:
· ACS/SAV/26 – Anti-Social Behaviour Team
(vi) To note that the following savings option was brought forward to 2013/14 pending further consideration:
· FIN&RES/SAV/12 – Internal Audit - Removal of Special Projects Budget
(vii) To note that officers are to issue notice from January 2013 to those staff at risk of redundancy as a result of the savings proposals listed in Appendix B to the report.