Agenda item
The 2012/13 Budget and Council Tax
- Meeting of Council, Monday 27 February 2012 7.00 pm (Item 5.)
- View the declarations of interest for item 5.
Report from the Director of Finance and Corporate Services circulated separately.
Minutes:
The Council had before it a report from the Director of Finance and Corporate Services seeking approval for the 2012/13 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 members were being asked to make on:
- the 2012/13 General Fund revenue budget;
- the 2012/13 Schools Budget;
- the 2012/13 Housing Revenue Account;
- the Council’s capital programme for 2012/13 to 2015/16;
- the Council’s treasury management strategy; and
- 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 meeting in support of the proposed budget and put forward an amendment to the recommendations which proposed an increase in the budget for ward working.
Councillor Lorber spoke against aspects of the proposed budget and moved an amendment which was circulated around the chamber, which proposed a number of alternatives to the proposed budget.
Councillor Kansagra spoke against aspects of the proposed budget and moved an amendment which proposed two alternatives to the proposed budget.
Councillor Butt referred to the difficult decisions faced by the Council in constructing the budget and of the need to protect the most vulnerable members of the community. He commended the proposed budget to members.
Councillor Allie was absent from the meeting and so there was no contribution on behalf of the Budget and Finance Overview and Scrutiny Committee.
A general debate followed with members commenting on the proposals from the Executive. Views were expressed in support of the budget by reference to the Council’s transformation programme that had led to improvements in services and reduced spending. The view was expressed that new approaches to meeting the demand for some services had to be found such as through joint commissioning in order to reduce expenditure. The Council was having to make severe cuts and so was not able to reallocate resources but was nevertheless looking to improve services. It was submitted that the budget demonstrated that the Council was meeting the challenges before it and doing its best to protect the most vulnerable residents.
Opposing views were expressed by reference to the need to make use of balances through such difficult times rather than increase them. It was submitted that the financial difficulties were a result of mismanagement by the previous government. The freezing of the Council Tax had been made possible by government assistance and services valued by local residents had been closed despite clear opposition being expressed.
The Council voted en bloc on the amendments proposed by Councillor Kansagra which was declared LOST.
The Council voted en bloc on the amendments circulated by Councillor Lorber which was declared LOST.
The Council voted on the amendment in the name of Councillor John which was declared CARRIED.
RESOLVED:-
In respect of Section 3
(i) that the latest forecast for the General Fund outturn (as outlined in Appendix A(i) of the report) for 2011/12 be noted;
(ii) that the 2011/12 budget virements (as outlined in Appendix A(ii) of the report) be agreed;
In respect of Section 4
(iii) that the process, including consultation that had led to these budget proposals, be noted;
(iv) that, subject to the budget for ward working being increased by £20,000 per ward (total £420,000) to be funded by the removal of the Chief Executive’s Performance Fund budget (£200,000) and a revised assumption on lower interest costs relating to capital financing in central items (£220,000), the General Fund revenue budget for 2012/13, as summarised in Appendix B to the report, be agreed;
(v) that the service area budgets including the cost pressures, savings, fees and charges and other adjustments detailed in Appendices C and D of the report be agreed;
(vi) that the non-service area budgets – central items shown at Appendix F of the report be noted and the budgets for central items and other budgets be agreed, subject to the amendment shown in (iv) above;
(vii) to note and, where appropriate, make provision for the contingent liabilities and risks set out in this section of the report;
(viii) that the approach to balances set out in the report be agreed;
(ix) that the report from the Director of Finance and Corporate Services in paragraph 4.30 in respect of his statutory duty under Section 25 of 2003 Local Government Act be received;
In respect of Section 5
(x) to note that a reduced Greater London Authority (GLA) precept of £306.72 for each Band D equivalent property was approved at the meeting of the Greater London Assembly on 9 February 2012;
(xi) that the information regarding the limitation of council tax increases be noted;
(xii) that it be agreed that there is no surplus or deficit at 31 March 2012 for that part of the Collection Fund relating to community charge;
(xiii) that the advice of the Director of Legal and Procurement set out in Appendix M of the report be noted;
(xiv) that the instalment dates for council tax and NNDR for 2012/13, and the recovery policy for council tax as set out in Appendix G(ii) of the report be agreed;
In respect of Section 6
(xv) that the Medium Term Financial Strategy and the provisional service area cash limits for 2013/14 to 2015/16 set out in Appendix H of the report be agreed;
In respect of Section 7
(xvi) that the Schools Budget set out in Appendix I to the report be agreed;
In respect of Section 8
(xvii) that the Housing Revenue Account budget set out in Appendix J to the report be agreed;
In respect of Section 9
(xviii) that the latest forecast outturn position on the 2011/12 capital programme be noted, and the revised budgets be agreed;
(xix) that the properties included within the disposals programme set out in Appendix K(v) of the report be noted;
(xx) that the 2012/13 to 2015/16 programme as set out in Appendix K(iii) of the report, including the new capital allocations, be agreed;
(xxi) 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 set out in the Council’s constitution;
(xxii) that the levels of unsupported borrowing forecast for 2012/13 and future years and the impact on council tax levels be noted;
(xxiii) that the policy on repayment of principal in 2012/13 as set out in paragraphs 9.15 to 9.22 of the report be adopted;
In respect of Section 10
(xxiv) that the Treasury Management Strategy and the Annual Investment Strategy for 2012/13 be agreed;
In respect of Section 11
(xxv) that the requirements of the Prudential Code be noted;
(xxvi) that the Prudential Indicators set out in this section for affordability, capital spending, external debt and treasury management be agreed;
(xxvii) that the arrangements for monitoring and reporting on Prudential Indicators be noted;
In respect of Section 12
(xxviii) that the procedures for controlling expenditure set out in this section be noted and agreed;
(xxix) that the updated schedule of Provisions and Earmarked Reserves set out in Schedule 1 of Appendix N to the report be agreed;
In addition
(xxx) that the Director of Finance and Corporate Services be authorised to:
(a) make payments on approved capital schemes in 2012/13,
(b) borrow in 2012/13 up to the limits agreed within the Prudential Indicators,
(c) enter such leasing arrangements as are necessary to finance the programme for 2012/13 and terminate or renegotiate any existing leases,
(d) make such minor adjustments to budgets as are necessary;
(xxxi) that, in agreeing the above recommendations and the budget in Appendix B to the report, the effect of all these measures is to produce a council tax requirement for the Council’s own purposes for 2012/13 of £104,197,578;
(xxxii) to note that a credit of £0.774m is attributable to the net surplus on the Collection Fund;
(xxxiii) to note that at its meeting on 24 January 2012, the General Purposes Committee calculated the amount of 98,398 as the council tax base for the year 2012/13 in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992;
(xxxiv) that in relation to the council tax for 2012/13:
the following amounts be now calculated by the Council for the year 2012/13 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as amended by the provisions of section 52ZX (inserted by Schedule 5 to the Localism Act 2011):
(a) £1,066,520,000 being the aggregate of the amount that the Council estimates for the items set out in Section 31A(2) of the Act,
(b) £962,322,422 being the aggregate of the amounts that the Council estimates for the items set out in Section 31A(3) of the Act,
(c) £104,197,578 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) £1,058.94 being the amount at (c) above, divided by the amount for the tax base specified above 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 |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
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 (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;
(xxxv) to note that for the year 2012/13 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 |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
204.48 |
238.56 |
272.64 |
306.72 |
374.88 |
443.04 |
511.20 |
613.44 |
(xxxvi) that, having calculated the aggregate in each case of the amounts at (xxiv)(e) above and the precepting authority referred to in (xxxv) 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 2012/13 for each of the categories of dwellings shown below:
Valuation Bands:
A |
B |
C |
D |
E |
F |
G |
H |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
910.44 |
1,062.18 |
1,213.92 |
1,365.66 |
1,669.14 |
1,972.62 |
2,276.10 |
2,731.32 |
(xxxvii)to note that the Director of Finance and Corporate Services has determined that the Council’s basic amount of Council Tax for 2012/13 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Act 1992;
(xxxviii)that the Director of Finance and Corporate Services 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 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:
- 000 EXECUTIVE SUMMARY TO BUDGET REPORT, item 5. PDF 84 KB
- 01 Introduction, item 5. PDF 48 KB
- 02 Recommendations, item 5. PDF 71 KB
- 03 The Probable Outturn, item 5. PDF 77 KB
- 04 2011-12 Revenue Budget Requirement, item 5. PDF 131 KB
- 05 Resources, item 5. PDF 93 KB
- 06 The Future - Medium Term Financial Strategy, item 5. PDF 90 KB
- 07 Schools Budget, item 5. PDF 67 KB
- 08 HRA, item 5. PDF 100 KB
- 09 The Capital Programme 201112 to 201516, item 5. PDF 131 KB
- 10 Treasury Management Strategy, item 5. PDF 130 KB
- 11 Setting Prudential Indicators for 2012-13, item 5. PDF 89 KB
- 12 Procedures Required to Control Expenditure, item 5. PDF 88 KB
- 15 LIST OF APPENDICES, item 5. PDF 42 KB
- 16 Appendix A, item 5. PDF 31 KB
- 17 Appendix B, item 5. PDF 15 KB
- 18 Appendix C (SA Budget Detail), item 5. PDF 94 KB
- 19 Appendix D(i) - Cost Pressures, item 5. PDF 141 KB
- 21 Appendix D(ii) (SA Budget - Savings), item 5. PDF 114 KB
- 22 Appendix D(iii) (adjustments), item 5. PDF 62 KB
- 23 Appendix D(iv) Grants, item 5. PDF 8 KB
- 24 Appendix D(v) One Council, item 5. PDF 217 KB
- 25 Appendix D(vi) Fees and Charges, item 5. PDF 318 KB
- 25 Appendix E - Overview & Scrutiny Report, item 5. PDF 181 KB
- 26 Appendix F - Central Items v2, item 5. PDF 142 KB
- 27 Appendix F - Table, item 5. PDF 15 KB
- 29 Appendix G(i) (CTax Property Valuation Bands), item 5. PDF 41 KB
- 30 Appendix G(ii) - Council Tax and NNDR Instalment Dates and Recovery Policy2012-13, item 5. PDF 91 KB
- 31 Appendix H - Financial Forecast, item 5. PDF 28 KB
- 33 Appendix I Schools Budget, item 5. PDF 140 KB
- 35 Appendix J - HRA Obj-Subj, item 5. PDF 28 KB
- 36 Apppendix K(i) Summary 201112, item 5. PDF 54 KB
- 37 Apppendix K(ii) Detail 201112, item 5. PDF 230 KB
- 38 Apppendix K(iii) Summary 201213, item 5. PDF 54 KB
- 39 Apppendix K(iv) Detail 201213, item 5. PDF 149 KB
- 40 Appendix K (v), item 5. PDF 7 KB
- 42 Annual Investment Strategy Appendices L(i) L(ii) L(iii), item 5. PDF 118 KB
- 43 Appendix M - (Legal Advice), item 5. PDF 103 KB
- 44 Appendix N - Scheme of Transfers and Virements, item 5. PDF 109 KB
- 48 Appendix O (Background Information), item 5. PDF 43 KB