Agenda item
The 2010/11 Budget and Council Tax
Report from the Director of Finance and Corporate Resources circulated separately
Minutes:
The Council had before it a report from the Director of Finance and Corporate Resources seeking approval for the 2010/2011 revenue and capital budgets and to the Council Tax to be levied. The report incorporated key information relating to the council’s current financial position and future projections. It set out the key decisions to be made on:
- the 2010/11 General Fund revenue budget
- the 2010/11 Schools budget
- the 2010/11 Housing Revenue Account
- the council’s capital programme for 2010/11 to 2013/14
- the council’s treasury management strategy
- prudential indicators aimed at ensuring the affordability of capital spending and a secure approach to borrowing and investment.
The Leader of the Council addressed the Council and moved the motion circulated in his and Councillor Blackman’s names. Councillor John addressed the Council and moved a separate budget motion, circulated in her name, proposing a number of alternative budget decisions. Councillor Blackman addressed the Council in support of the recommendations in the report.
Councillor Mendoza reported on the deliberations of the Budget Panel. He thanked the members of the Panel and officers for their work during the year and congratulated the Executive on the way it had dealt with the challenges faced by the Council. He urged the Executive to be ready to deal with the tough spending regime facing the council. Having adopted an ambitious improvement and efficiency strategy, Councillor Mendoza also stressed the importance of the Executive ensuring it was effectively monitored and implemented. He referred to the very good performance of the Executive in meeting the number of corporate strategy priorities that it had and hoped the aim could be to exceed this during the next four years.
Councillor Jones referred to the work of members on the overview and scrutiny committees/sub-committees and the task groups as contributing to the services provided to Brent residents. She referred particularly to the work on day centres which had resulted in a change of approach. Councillor Jones referred to the many recommendations coming out of the work of task groups, some of which were aspirational. She felt the Executive was lacking in aspiration and stated that a tracking system would follow the implementation of these recommendations. The task groups took on a wide range of issues including those affecting partner agencies and Councillor Jones referred to some of the issues raised as a result of their work. She gave notice that the next round of task groups aimed to look at issues covering extending democracy, health services, alley gating, and agency staff. She wished the overview and scrutiny committee under the new administration success in its work and urged that members attend and take part in its deliberations.
A general debate then followed with members expressing views on the proposals from the Executive and the alternative proposals from the Leader of the Opposition.
Councillor Butt addressed the meeting by submitting that the recession was being used as a smokescreen for the cuts and inefficiencies within the Council. The Council had been assisted over many years by increases in government funds and he stated that the Council was now relying on zero percentage interest rates and an improvement and efficiency strategy. However, he warned against assuming everything would go to plan and felt that insufficient contingency had been made. He felt the budget was vague on detail and urged that the motion moved by Councillor John be supported.
The Council voted on the motion in the name of Councillor John which was declared LOST.
The Council then voted on the motion in the names of the Leader and Deputy Leader of the Council which was declared CARRIED.
RESOLVED:-
(i) to note that this is the current Administration’s fourth Budget and is again a value for money and robust Budget, taking full consideration of the medium term financial context and that this Administration is committed to delivering its continuing strategy to deliver both service improvements and efficiencies;
(ii) that, being very conscious of the impact the recession is having on Brent’s residents and despite the challenges of the recession, this Administration is proud to present a budget which delivers a freeze in the level of Council Tax residents will pay meaning that Brent’s Council Tax will remain the 4th lowest of the 20 Outer London Boroughs;
(iii) that this budget again delivers real growth to the front-line services prioritised by the Administration, including:
· £2.3m for Child Protection Services;
· £1m on Adult Social Care;
· extra investment in the environment, including £90,000 for the Green Zones programme and £245,000 for fighting climate change
· £250k on supporting the redevelopment of Brent’s secondary schools;
· £800k on sport and youth activities;
· £500k on Temporary Accommodation;
· an extra £100,000 invested into Libraries for more books
· £68k for additional CCTV.
· schools will see an extra 4.7 per cent per pupil
· £1.5 million to offset the impact of Government changes to the funding of the Freedom Pass scheme so all previously eligible residents will still qualify,
with this growth mainly funded from efficiency savings, renewing the council’s commitment that front-line services should be protected;
(iv) that this Administration stands by its proud record of delivering enhanced services to residents while keeping Council Tax increases low and is pleased to be able to deliver a freeze in the Council Tax to help residents manage in difficult economic times;
(v) that the recommendations of the Budget Panel in Appendix E(ii) of the report be welcomed and endorsed;
The following resolutions relate to the report of the Director of Finance and Corporate Resources:
In respect of Section 3
(vi) that the process, including consultation, that has led to these budget proposals be noted;
In respect of Section 4
(vii) that the final 2008/09 outturn be noted;
(viii) that the latest forecast for the General Fund outturn (as detailed in Appendix A of the report) for 2009/10 be noted;
In respect of Section 5
(ix) that the General Fund revenue budget for 2010/11, as summarised in Appendix B of the report, be agreed;
(x) that the service area budgets including the growth and savings and other adjustments detailed in Appendices C and D of the report be agreed;
(xi) that Appendix F of the report be noted and the budgets for central items and other budgets be agreed;
(xii) that the contingent liabilities and risks set out in this section of the report be noted and, where appropriate, provision be made for contingent liabilities and risks;
(xiii) that the approach to balances set out in the report be agreed;
(xiv) that the report (paragraph 5.35 refers) from the Director of Finance and Corporate Resources in respect of his statutory duty under Section 25 of the Local Government Act 2003 be received;
In respect of Section 6
(xv) that approval of the GLA precept at the meeting of the Greater London Assembly on 10 February 2010 be noted;
(xvi) that the advice of officers on the capping limit be noted;
(xvii) that there is no surplus or deficit at 31 March 2010 for that part of the Collection Fund relating to community charge;
(xviii) that the advice of the Borough Solicitor as set out in Appendix O of the report be received;
(xix) that the instalment dates for Council Tax and NNDR for 2010/11, and the recovery policy for Council Tax be as set out in Appendix H(ii) of the report;
In respect of Section 7
(xx) that the Medium Term Financial Strategy and the provisional service area cash limits for 2011/12 to 2013/14 set out in Appendix I of the report be agreed;
In respect of Section 8
(xxi) that the Schools Budget set out in Appendix K(i) of the report be agreed;
In respect of Section 9
(xxii) that the Housing Revenue Account budget set out in AppendixL to the report be agreed;
In respect of Section 10
(xxiii) that the latest forecast outturn position on the 2009/10 capital programme be noted, and the revised budgets be agreed;
(xxiv) that the properties included within the disposals programme set out in Appendix M(vi) of the report be noted;
(xxv) that the 2010/11 to 2013/14 capital programme set out in Appendix M(iii) of the report, including the new capital allocations, be agreed, taking account of risk arising on the funding of the Building Schools for the Future programme as detailed in paragraph 10.15(ii) of the report;
(xxvi) that the inclusion in the capital programme of all capital schemes, irrespective of the source of funding be noted and that all schemes be subject to the approval procedures as set out in the Constitution;
(xxvii) that the levels of supported and unsupported borrowing forecast for 2010/11 and future years and the impact on Council Tax levels be noted;
(xxviii)that the policy on repayment of principal in 2010/11 as set out in paragraphs 10.22 to 10.30 of the report be adopted;
In respect of Section 11
(xxix) that the Treasury Management Strategy and the Annual Investment Strategy for 2010/11 be agreed;
In respect of Section 12
(xxx) that the requirements of the Prudential Code be noted;
(xxxi) that the Prudential Indicators set out in this section of the report for affordability, capital spending, external debt and treasury management be agreed;
(xxxii) that the arrangements for monitoring and reporting on Prudential Indicators be noted;
In respect of Section 13
(xxxiii) that the measures in place to help deliver Value for Money be noted;
In respect of Section 14
(xxxiv)that the procedures for controlling expenditure set out in this section of the report be noted and agreed;
(xxxv) that the updated schedule of Provisions and Earmarked Reserves set out in Schedule 1 of Appendix P of the report be agreed;
In addition
(xxxvi)that the Council’s Director of Finance and Corporate Resources be authorised to:
(a) Make payments on approved capital schemes in 2010/11.
(b) Borrow in 2010/11 up to the limits agreed within the Prudential Indicators.
(c) Enter such leasing arrangements as are necessary to finance the programme for 2010/11 and terminate or renegotiate any existing leases.
(d) Make such minor adjustments to budgets as are necessary;
(xxxvii)to note that in agreeing the above recommendations and the budget in Appendix B of the report, the effect of all these measures is to produce overall council expenditure in 2010/11 of £266.631m;
(xxxviii)to note that £1.162m is attributable to the net deficit on the Collection Fund;
(xxxviii)to note that at its meeting on 26 January 2010 the General Purposes Committee calculated the amount of 96,457 as its Council Tax Base for the year 2010/11 in accordance with the Local Authorities (calculation of Council Tax Base) Regulations 1992;
(xxxix) that in relation to the Council Tax for 2010/11:
the following amounts be now calculated by the Council for the year 2010/11 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:
(a) £1,019,255,000 being the aggregate of the amount that the
Council estimates for the items set out in Section 32(2)(a) to (e) of the Act.
(b) £753,786,000 being the aggregate of the amounts that the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act.
(c) £265,469,000 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year.
(d) £163,327,000 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed non-domestic rates and revenue support grant reduced by the amount of the sums which the Council estimates will be transferred in the year from its general fund to its collection fund in accordance with Section 97(4) of the Local Government Finance Act 1988.
(e) £1,058.94 being the amount at (c) above less the amount at (d) above, all divided by the amount for the taxbase specified above calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its Council Tax for the year;
(f) Valuation Bands
A |
B |
C |
D |
E |
F |
G |
H |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
705.96 |
823.62 |
941.28 |
1,058.94 |
1,294.26 |
1,529.58 |
1,764.90 |
2,117.88 |
being the amounts given by multiplying the amount at (e) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands;
(xl) to note that for the year 2010/11 the Greater London Authority has stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, in respect of the Greater London Authority, for each of the categories of dwellings shown below:
Valuation Bands |
|||||||
A |
B |
C |
D |
E |
F |
G |
H |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
206.55 |
240.97 |
275.40 |
309.82 |
378.67 |
447.52 |
516.37 |
619.64 |
(xli) that, having calculated the aggregate in each case of the amounts at (f) above and the precepting authority referred to in (xli) above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2010/11 for each of the categories of dwellings shown below:
Valuation Bands |
||||||||
A |
B |
C |
D |
E |
F |
G |
H |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
912.51 |
1,064.59 |
1,216.68 |
1,368.76 |
1,672.93 |
1,977.10 |
2,281.27 |
2,737.52 |
|
(xlii) that the Director of Finance and Corporate Resources be and is hereby authorised:
(a) to give due notice of the said council tax in the manner provided by Section 38(2) of the 1992 Act,
(b) when necessary to apply for a summons against any Council Tax payer or non-domestic ratepayer on whom an account for the said tax or rate and any arrears has been duly served and who has failed to pay the amounts due and to take all subsequent necessary action to recover them promptly,
(c) to collect revenues and distribute monies from the Collection Fund and is authorised to borrow or to lend money in accordance with the regulations to the maximum benefit of each fund.
Supporting documents:
- 00 Contents, item 7. PDF 79 KB
- 000 EXECUTIVE SUMMARY TO BUDGET REPORT, item 7. PDF 105 KB
- 01 Introduction, item 7. PDF 58 KB
- 02 Recommendations, item 7. PDF 78 KB
- 03 Budget Making Process, item 7. PDF 104 KB
- 04 The Probable Outturn 2009-10, item 7. PDF 85 KB
- 05 2010-11 Revenue Budget Requirement, item 7. PDF 159 KB
- 06 Resources, item 7. PDF 113 KB
- 07 The Future - Medium Term Forecast, item 7. PDF 129 KB
- 08 - Schools Budget, item 7. PDF 75 KB
- 09 Housing Revenue Account, item 7. PDF 79 KB
- 10 The Capital Programme 200910 to 201314, item 7. PDF 178 KB
- 11 Treasury Management Strategy 2009, item 7. PDF 146 KB
- 12 Setting Prudential Indicators for 2010-11, item 7. PDF 96 KB
- 13 Value for Money (1), item 7. PDF 69 KB
- 14 Procedures Required to Control Expenditure, item 7. PDF 96 KB
- 15 LIST OF APPENDICES, item 7. PDF 56 KB
- 16 Appendix A, item 7. PDF 20 KB
- 17 Appendix B, item 7. PDF 15 KB
- 18 Appendix C (SA Budget Summary), item 7. PDF 175 KB
- 19 Appendix D(i)(a) - Inescapable Growth, item 7. PDF 138 KB
- 20 Appendix D(i)(b) - Other Growth, item 7. PDF 163 KB
- 21 Appendix D(ii) (SA Budget - Savings), item 7. PDF 69 KB
- 21a Appendix D(iii) (Additional Income and Fees and Charges), item 7. PDF 120 KB
- 22 Appendix D(iv) (adjustments), item 7. PDF 24 KB
- 23 Appendix D(v) ABG Allocations Dept, item 7. PDF 66 KB
- 24 Appendix E(i) - 1st Reading Debate, item 7. PDF 58 KB
- 25 Appendix E (ii) - Final Budget Panel Report, item 7. PDF 224 KB
- 26 Appendix F - Central Items, item 7. PDF 155 KB
- 27 Appendix F - Table, item 7. PDF 18 KB
- 28 Appendix G - A Guide to the LGFS, item 7. PDF 186 KB
- 29 Appendix H(i) (CTax Property Valuation Bands), item 7. PDF 43 KB
- 30 Appendiix H(ii) - Council Tax and NNDR Instalment Dates and Recovery Policy2009-10, item 7. PDF 87 KB
- 31 Appendix I - Financial Forecast 2010-11 - 2013-14, item 7. PDF 33 KB
- 32 Appendix J (i)- Corp Strategy, item 7. PDF 88 KB
- 32a Appendix J (ii) - Activity Data, item 7. PDF 145 KB
- 33 Appendix K(i) Dedicated Schools Budget, item 7. PDF 97 KB
- 34 Appendix K(ii) - Summary - Schools Forum 8th February 2010, item 7. PDF 56 KB
- 35 Appendix L - HRA Objective-Subjective, item 7. PDF 24 KB
- 36 Appendix M (i), item 7. PDF 67 KB
- 37 Appendix M (ii), item 7. PDF 250 KB
- 38 Appendix M (iii), item 7. PDF 45 KB
- 39 Appendix M (iv), item 7. PDF 115 KB
- 40 Appendix M (v) - Capital Appendix M(v), item 7. PDF 68 KB
- 41 Appendix M (vi), item 7. PDF 9 KB
- 42 Appendix N(i), N(ii), and N(iii)- annual investment strategy, item 7. PDF 135 KB
- 43 Appendix O - (Legal Advice), item 7. PDF 104 KB
- 44 Appendix P - Scheme of Transfers and Virements, item 7. PDF 108 KB
- 45 Appendix Q(i) - 2009-10 Appendix Q - Efficiency Forecasts, item 7. PDF 131 KB
- 46 Appendix Q(ii) - I&E Action Plan - Target Savings, item 7. PDF 180 KB
- 47 Appendix Q(iii) - I&E Action Plan - Non Financial Benefits, item 7. PDF 63 KB
- 48 Appendix R (Background Information), item 7. PDF 44 KB