Agenda item
Budget 2016-17 and Council Tax
To consider the Council’s budget and level of Council Tax for 2016/17.
A presentational issue has been identified in Appendix J(ii) with expenditure planned for Church End shown incorrectly for Chalkhill. This has been corrected with the revised Appendix. The intention for these funds to go to Church End is clearly shown in the minutes of the January 2016 cabinet meeting, and at Appendix J(i) of the Budget, which is summarised in the main report at paragraph 14.10.
Minutes:
The Council had before it a report on the 2016/17 revenue and capital budgets and proposing an increase in the Council Tax to be levied.
The Leader of the Council, Councillor Butt, addressed the meeting in support of the proposed budget. He referred to the cuts imposed by Government on local government, stating that the effect of this would be to reduce the Council’s budget by half during the period 2010-2018. He stated however that action was being taken to protect the services that local residents cared about. Nevertheless there was a need for honesty in recognizing the scale of cuts faced by the Council and that current levels of services could not be maintained and Council Tax levels not increased. He presented an optimistic view of the future based on everyone in the borough working together to make Brent a better place. Councillor Butt referred to Brent as a growing borough which in turn put pressure on local services, particularly from increasing numbers of young people and elderly people. He outlined how the Council had responded to the Government cuts by adopting values that ensured value for money, protecting vulnerable people and providing for the young. So far it had been possible to hold down Council Tax levels but he explained this was no longer possible if the priorities of residents were to be protected. Councillor Butt outlined the proposals contained in the budget for growth and development. He encouraged everyone to download the Cleaner Brent App to help the Council keep the streets free from rubbish. He expressed confidence that the people of Brent would help the Council get through this difficult time and commended the budget proposals to the meeting.
Councillor Kansagra responded by saying that at every budget meeting the blame was laid on the Government but it was forgotten that the past Labour government had left the economy in a very weak position. He outlined what he regarded as improvements since achieved by the present government such as increased employment levels, cuts in taxes and increases in the state pension. He agreed with the proposal to increase the Council Tax by 2% to help fund Adult Social Care but did not agree with the proposal to further increase the Council Tax by 1.99%. He submitted amendments to the budget designed to delete the proposal for the green bin collection charge and introduce free parking for half hour where appropriate in Brent’s secondary shopping parades.
Councillor Warren presented his alternative budget headlined by a 2.5% cut in the level of Council Tax. He criticized what he regarded as the high level of reserves held by the Council and indicated areas where the Council had not spent the money it had available to it which he felt was unacceptable. He stated that residents did not need to be consulted on improving services and that the money spent on this would be better spent on dealing with potholes in the borough. Councillor Warren’s proposals sought to make savings on some central items and increase funding for Adult Social Care, fly tipping enforcement, CCTV and removing the green bin charge. He commended his alternative budget to the meeting.
Councillor Pavey, Lead Member for Resources and Deputy Leader, thanked those local people that had taken part in the consultation on the budget. He thanked Scrutiny members for their work on considering the budget proposals and the contributions made by individual councillors. Councillor Pavey addressed the proposals submitted by Councillor Kansagra and asked how they would be paid for. Commenting on the proposals put forward by Councilor Warren he stated that these lacked proper scrutiny. He stated that the level of reserves held by the Council had been carefully examined. Consultation with residents had shown support for a Council Tax increase. The proposed budget preserved services for children and older people and helped people get into work.
Councillor Kelcher, Chair of Scrutiny Committee, referred to the work of scrutiny members on CCTV, tackling illegal dumping and the budget. He stated that a lesson learnt was that scrutiny of the budget needed to start earlier in the year. A view of scrutiny members was that in future years a clearer vision was needed to support the budget discussions. He referred to areas of the budget which had been influenced by the work of scrutiny.
A general debate followed with councillors commenting on the proposed budget and the amendments put forward. Reference was made to the impact the banking scandals had had on the economy. It was submitted that the budget proposals contained in the report sought to protect the most vulnerable. It was felt that the money generated by a 2% rise in Council Tax was not sufficient to meet the increasing need for Adult Social Care. A point was made that government cuts should be recognised for what they were. Criticism was made of the government’s Universal Credit system. A point was made that the budget sought to achieve equality and fairness. Members supported the allocation of additional resources to various areas that supported the needs of local residents. The view was expressed that it was the responsibility of the Council to present a balanced budget and this had been done under difficult circumstances. People who lived and worked in the borough were asked to make best use of the dwindling resources available.
A view was submitted that the alternative budget proposals put forward by Councillor Warren were to be applauded. Reference was made to the additional money allocated to local councils by the government for repairs to potholes and that well run efficient councils would be able to make good use of this. A view was submitted that the government was addressing the level of debt just as householders were encouraged to do.
The Leader thanked everyone for their contribution and suggested that the opposition parties did not understand the impact the cuts in government grant were having.
The amendment moved by Councillor Kansagra was put to the vote and declared LOST.
Voting was recorded as follows:
FOR: Councillors Colwill, Kansagra and Maurice
AGAINST: Councillors Aden, Agha, Allie, Bradley, Butt, Chan, Chohan, Choudhary, Colacicco, Crane, Daly, Davidson, Denselow, Dixon, Duffy, Eniola, Ezeajughi, Farah, Harrison, Hector, Hirani, Hoda Benn, Hossain, Hylton, Kabir, Kelcher, Long, Mahmood, Marquis, Mashari, McLeish, McLennan, Miller, Moher, J Mitchell Murray, W Mitchell Murray, Nerva, M Patel, R Patel, Pavey, Perrin, Shahzad, Shaw, Ketan Sheth, Krupa Sheth, Southwood, Stopp, Tatler, Van Kalwala and Warren
ABSTENTIONS: The Mayor, Deputy Mayor and Councillor Carr
The amendment moved by Councillor Warren was put to the vote and declared LOST.
Voting was recorded as follows:
FOR: Councillors Carr, Davidson, Maurice Shaw and Warren
AGAINST: Councillors Aden, Agha, Allie, Bradley, Butt, Chan, Chohan, Choudhary, Colacicco, Crane, Daly, Denselow, Dixon, Duffy, Eniola, Ezeajughi, Farah, Harrison, Hector, Hirani, Hoda Benn, Hossain, Hylton, Kabir, Kelcher, Long, Mahmood, Marquis, Mashari, McLeish, McLennan, Miller, Moher, J Mitchell Murray, W Mitchell Murray, Nerva, M Patel, R Patel, Pavey, Perrin, Shahzad, Ketan Sheth, Krupa Sheth, Southwood, Stopp, Tatler and Van Kalwala
ABSTENTIONS: The Mayor, Deputy Mayor and Councillors Colwill and Kansagra
RESOLVED:
(i) that an overall 3.99% increase in the Council’s element of council tax for 2016/17 with 2% as a precept for Adult Social Care and a 1.99% general increase be agreed;
(ii) that the General Fund revenue budget for 2016/17, as summarised in Appendix B to the report submitted be agreed;
(iii) that the cost pressures and savings detailed in Appendix D to the report submitted and dedicated schools’ grant as set out in section 6 of the report be agreed;
(iv) that the revisions to the savings originally proposed in the budget set in the 2015/16 budget set out in paragraphs 6.3, 6.4 and 6.5 of the report submitted be agreed;
(v) that the revision to remove saving MGF02 from the 2017/18 and 2018/19 budget proposals set out in paragraph 6.6 of the report submitted be agreed;
(vi) that the Chief Finance Officer's assessment of risks as set out in Appendix E to the report submitted be noted;
(vii) that the report from the Budget Scrutiny Panel included as Appendix F to the report submitted be noted;
(viii) that the results of consultation as set out in section 9 of the report submitted be noted;
(ix) that the budgets for central items as detailed in Appendix G to the report submitted be agreed;
(x) that the capital programme as set out in Appendix J to the report submitted be agreed;
(xi) that the Treasury Management Strategy and the Annual Investment Strategy for 2016/17 set out in Appendix K to the report submitted be agreed;
(xii) that the Prudential Indicators measuring affordability, capital spending, external debt and treasury management set out in Appendix L to the report submitted be agreed;
(xiii) that the advice of the Chief Legal Officer as set out in Appendix M of the report submitted be noted;
(xiv) that the categorisation of Earmarked Reserves and Provisions set out in Appendix N of the report submitted be agreed;
(xv) that the schedules of fees and charges set out at Appendix Q of the report submitted be agreed;
(xvi) that the funding update provided in Appendix R to the report submitted be noted;
[These decisions only include a provisional Council Tax level for the GLA as its final budget was not agreed when this report was dispatched. This means that the statutory calculation of the total amount of Council Tax under Section 30(2) of the Local Government Finance Act 1992 may be amended by the final Greater London Authority precept].
(xvii) that, in relation to the council tax for 2016/17:
the following amounts be now calculated by the Council for the year 2016/17 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as amended:
(a) £1,025,870,075 being the aggregate of the amount that the Council estimates for the items set out in Section 31A(2) of the Act.
(b) £927,580,000 being the aggregate of the amounts that the Council estimates for the items set out in Section 31A(3) of the Act.
(c) £98,290,075 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its Council Tax requirement for the year.
(d) £1,101.24 being the amount at (c) above, divided by the amount for the taxbase of 89,254, agreed by the General Purposes Committee on the 25th Jan 2016, calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year.
(e) Valuation Bands
A |
B |
C |
D |
E |
F |
G |
H |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
734.16 |
856.52 |
978.88 |
1,101.24 |
1,345.96 |
1,590.68 |
1,835.40 |
2,202.48 |
being the amounts given by multiplying the amount at (d) 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.
Valuation Bands |
|||||||
A |
B |
C |
D |
E |
F |
G |
H |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
184.00 |
214.67 |
245.33 |
276.00 |
337.33 |
398.67 |
460.00 |
552.00 |
Valuation Bands |
|||||||
A |
B |
C |
D |
E |
F |
G |
H |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
918.16 |
1,071.19 |
1,224.21 |
1,377.24 |
1,683.29 |
1,989.35 |
2,295.40 |
2,754.48 |
(xx) that it be noted that the Chief Finance Officer has determined that the Council’s basic amount of Council Tax for 2016/17 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Act 1992.
(a) that the Chief Finance Officer be and is hereby authorised to give due notice of the said council tax in the manner provided by Section 38(2) of the 1992 Act,
(b) that the Chief Finance Officer be and is hereby authorised 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 to take all subsequent necessary action to recover them promptly,
(c) that the Chief Finance Officer be and is hereby authorised 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.
(xxi) that in the event that the GLA sets a different council tax precept to that set out in this report (which was the published provisional amount at the date of despatch) that authority be delegated to the Chief Finance Officer to vary the amounts at (xix) above, but only insofar as to reflect the GLA decision, and to make consequential, but no other, amendments to the amounts at (xx) above.
Voting was recorded as follows:
FOR: Councillors Aden, Agha, Allie, Bradley, Butt, Chan, Chohan, Choudhary, Colacicco, Conneely, Crane, Daly, Denselow, Dixon, Duffy, Eniola, Ezeajughi, Farah, Harrison, Hector, Hirani, Hoda Benn, Hossain, Hylton, Kabir, Kelcher, Khan, Long, Mahmood, Marquis, Mashari, McLeish, McLennan, Miller, Moher, J Mitchell Murray, W Mitchell Murray, Nerva, M Patel, R Patel, Pavey, Perrin, Shahzad, Ketan Sheth, Krupa Sheth, Southwood, Stopp, Tatler and Van Kalwala
AGAINST: Councillors Carr, Colwill, Davidson, Kansagra, Maurice, Shaw and Warren
ABSTENTIONS: The Mayor and Deputy Mayor
Supporting documents:
- 1-Budget Report, item 8. PDF 283 KB
- 2-Appendix 0 List of Appendices (2), item 8. PDF 35 KB
- 3-Appendix B, item 8. PDF 13 KB
- 4-Appendix D(i) - Service Cost Pressures, item 8. PDF 159 KB
- 5-Appendix D(ii) Agreed Savings 2016-17 to 2018-19, item 8. PDF 204 KB
- 6-Appendix D(iii) Summary Savings Proposals, item 8. PDF 170 KB
- 7-Appendix D(iv)Grants, item 8. PDF 10 KB
- 8-Appendix E - Risk and s25 statement, item 8. PDF 48 KB
- 9-Appendix F - Report from the Budget Scrutiny Panel, item 8. PDF 141 KB
- 10-Appendix G(i) - Central Items Table, item 8. PDF 18 KB
- 11-Appendix G(ii) - Central Items, item 8. PDF 119 KB
- 12-Appendix J(i) - Capital Programme Detail of Amendments, item 8. PDF 58 KB
- 13-Appendix J(ii) - Capital Programme Expenditure and Income, item 8. PDF 61 KB
- 14-Appendix K - Treasury Management Strategy, item 8. PDF 411 KB
- 15-Appendix L - Prudential Indicators v02, item 8. PDF 97 KB
- 16-Appendix M - Legal Advice, item 8. PDF 129 KB
- 17-Appendix N - Earmarked Reserves and Provisions, item 8. PDF 45 KB
- 18-Appendix Q(i) - Fees Charges 2016-17, item 8. PDF 64 KB
- 19-Appendix Q(ii) - Scheme of Fees and Charges, item 8. PDF 263 KB
- 20-Appendix Q(iii) - Unchanged Fees and Charges, item 8. PDF 402 KB
- 21-Appendix R - Funding update, item 8. PDF 60 KB
- 22-EA Screening Forms Appendix, item 8. PDF 198 KB
- Appendix J(ii) - revised, item 8. PDF 61 KB