Agenda item
The 2013/14 Budget and Council Tax
- Meeting of Council, Monday 25 February 2013 7.00 pm (Item 5.)
- View the declarations of interest for item 5.
Report circulated separately.
Minutes:
The Council had before it a report seeking approval of the 2013/14 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 2013/14 General Fund revenue budget;
- the 2013/14 Schools Budget;
- the 2013/14 Housing Revenue Account;
- the Council’s capital programme for 2013/14 to 2016/17;
- 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. He referred to what he saw as a divide in politics that saw one side believing that everyone could make a positive contribution to the economy and community and the other believing some people had to lose so that others could win. He expressed the view that government should work for everyone and felt that local government had the ability to make things better which was what the proposed budget aimed to do. Councillor Butt put forward an amendment to the recommendations which proposed an increase in the budget for parking.
Councillor Lorber submitted that much of what the budget aimed to achieve was in fact funded by the Government and was generally supported. He 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. He also referred to the advanced planning for the difficult economic circumstances undertaken by the previous Administration which was now delivering the majority of the savings needed.
Councillor Kansagra spoke against aspects of the proposed budget and moved an amendment which proposed three alternatives to the proposed budget. He voiced his support for freezing the Council Tax. He stated that Government was helping to get more people into work and submitted that it made sense that those people in work should be better rewarded than those on benefits. Councillor Kansagra also pointed to examples of where the Government was taking action to reduce the burden placed upon citizens.
Councillor Hopkins (Chair of the Budget and Finance Overview and Scrutiny Committee) thanked members of the Committee for their contributions to the work of her committee. She reminded members that the role of the committee was to examine budgets and seek out any potential problems. She also thanked the officers for their work in supporting the committee. The key point in the committee's report was that it had established monthly reporting of up to date information so that any problem areas could be identified early.
Councillor R Moher stated that the present Government's economic policies were affecting local people, with the younger generation facing difficult times through to at least 2015/16. She referred to the unhelpful last minute announcements from Government on the local government settlement and praised officers for being able to produce a budget on time. She added that as the Council became more efficient it was harder to find savings and those that were identified took longer to achieve. An audit of the Council's services would be undertaken and innovative ways of delivering services would continue to be explored.
A general debate followed with members commenting on the proposals from the Executive.
Views were expressed in support of the Council's library transformation programme with recent figures showing the service improving. There were views expressed that the Government was targeting the poor but that the Council would work to protect the less fortunate in the borough. Support was expressed for keeping up the level of reserves that continued to be the lowest in London at a time the Council faced the greatest risk. There was support for the Council freezing Council Tax for the next two years. Reference was made to the customer services transformation project which had seen the service undergo ambitious reform and able to provide a better service. Examples of where the Council had saved money were highlighted. There was reference to the number of children living in the borough under the poverty threshold and the work the Council was doing to intervene to protect these children. It was pointed out that the Council had established a new navigator service designed to provide support to the most vulnerable families in the borough. It was acknowledged that parking was a big issue and it was reported that proposals would be put forward that would respond to the views expressed by people. The comment was made that reference to the Government providing funding to the Council did not tally with the report before members showing the Council's budget had decreased by 26%. Reference was made to the pressure on the children and families service at a time when Brent had a growing population. There was criticism over the Government cutting early intervention programmes and diverting schools funding into setting up free schools. Reference was made to the importance of the Council delivering good public health services upon them being transferred over from the Health Service with particular reference being made to dealing with sexual health matters and providing family planning support. A view was expressed that the Government was out of touch with ordinary working people and the worst off would be most affected by the welfare reform cuts. It was submitted that the Council needed to maintain services for the underprivileged. There was support for the introduction of the London Living wage which would help lift families out of poverty. It was pointed out that rents were to increase by 3.7% and this would go towards addressing the repairs backlog and improving insulation in order to bring tenants' fuel bills down. It was submitted that the Council was fighting for regeneration of the borough through attracting investment. Areas such as Park Royal and Wembley City would provide local jobs for local people. The list of benefit cuts was pointed out as affecting many vulnerable people. It was stated that the budget supported the voluntary sector. It was said that the Council stood for fairness and that the Government's economic forecasts continued to be wrong.
Opposing views were expressed by reference to the legacy of the previous government and the support the Government was giving through various funding streams. It was submitted that blaming the Government would not improve things. Reference was made to the closure of six libraries and it was submitted that the Council could have afforded to keep them all open. Views were expressed regarding parking charges being too high. A plea was made to reduce the bureaucracy placed on voluntary organisations to account for the money they received.
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 proposed by Councillor Butt 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 2012/13 be noted;
(ii) that the 2012/13 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 the budget proposals, be noted;
(iv) that, subject to the budget for parking being increased by £274,000 to be funded by a saving of £210,000 from the ward working budget and savings of £64,000 from Central items (Levies), the General Fund revenue budget for 2013/14, 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 Appendix F of the report be noted and that the budget for central items and other budgets as shown at Appendix F be agreed subject to resolution (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 Chief Finance Officer in paragraph 4.29 in respect of his statutory duty under Section 25 of the Local Government Act 2003 be received;
In respect of Section 5
(x) to note that the Greater London Authority (GLA) precept will be approved at a meeting of the Greater London Assembly on 25 February 2013;
(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 2013 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 2013/14, and the recovery policy for Council Tax, as set out in Appendix G(ii) of the report be agreed;
(xv) that applications for reducing Council Tax payable by persons of pensionable age in receipt of a war widows, war widowers or war disablement pension be agreed in accordance with section 13A(1)(c) of the Local Government Finance Act 1992 as set out in Appendix G(iv) of the report;
(xvi) that decisions on other individual applications for reducing Council Tax payable in accordance with section 13A(1)(c) of the Local Government Finance Act 1992 be delegated to the Chief finance Officer as set out in the report;
In respect of Section 6
(xvii) that the Medium Term Financial Strategy and the provisional service area cash limits for 2014/15 to 2016/17 set out in Appendix H of the report be agreed;
In respect of Section 7
(xviii) that the Schools Budget set out in Appendix I to the report be agreed;
In respect of Section 8
(xix) that the Housing Revenue Account budget set out in Appendix J to the report be agreed;
In respect of Section 9
(xx) that the latest forecast outturn position on the 2012/13 capital programme be noted, and the revised budgets be agreed;
(xxi) that the 2013/14 to 2016/17 capital programme, as set out in Appendix K(ii) of the report, including the new capital allocations, be agreed;
(xxii) that the inclusion of all capital schemes in the capital programme be noted and that all schemes be subject to the approval procedures set out in the Council’s constitution;
(xxiii) that the levels of unsupported borrowing forecast for 2013/14 and future years and the impact on Council Tax levels be noted;
(xxiv) that the policy on repayment of principal in 2013/14 as set out in paragraphs 9.15 to 9.22 of the report be adopted;
In respect of Section 10
(xxv) that the Treasury Management Strategy and the Annual Investment Strategy for 2013/14 be agreed;
In respect of Section 11
(xxvi) that the requirements of the Prudential Code be noted;
(xxvii) that the Prudential Indicators set out in this section for affordability, capital spending, external debt and treasury management be agreed;
(xxviii) that the arrangements for monitoring and reporting on Prudential Indicators be noted;
In respect of Section 12
(xxix) that the procedures for controlling expenditure set out in this section be noted and agreed;
(xxx) that the updated schedule of Provisions and Earmarked Reserves set out in Schedule 1 of Appendix N to the report be agreed;
In addition
(xxxi) that the Council's Chief Finance Officer be authorised to:
(a) make payments on approved capital schemes in 2013/14,
(b) borrow in 2013/14 up to the limits agreed within the Prudential Indicators,
(c) enter such leasing arrangements as are necessary to finance the programme for 2013/14 and terminate or renegotiate any existing leases,
(d) make such minor adjustments to budgets as are necessary;
(xxxii) 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 2013/14 of £81,740,638;
(xxxiii) to note that a credit of £1.814m is attributable to the net surplus on the Collection Fund;
(xxxiv) to note that at its meeting on 22 January 2013 the General Purposes Committee calculated the amount of 77,191 as the Council Tax base for the year 2013/14 in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992;
(xxxv) that in relation to the Council Tax for 2013/14 the following amounts be now calculated by the Council for the year 2013/14 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as amended:
(a) £1,062,271,000 being the aggregate of the amount that the Council estimates for the items set out in Section 31A(2) of the Act,
(b) £980,530,362 being the aggregate of the amounts that the Council estimates for the items set out in Section 31A(3) of the Act,
(c) £81,740,638 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;
(xxxvi) to note that for the year 2013/14 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 |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
202.00 |
235.67 |
269.33 |
303.00 |
370.33 |
437.67 |
505.00 |
606.00 |
(xxxvii) that, having calculated the aggregate in each case of the amounts at (xxxv)(e) above and the precepting authority referred to in (xxxvi) 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 2013/14 for each of the categories of dwellings shown below:
Valuation Bands |
||||||||
A |
B |
C |
D |
E |
F |
G |
H |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
907.96 |
1,059.29 |
1,210.61 |
1,361.94 |
1,664.59 |
1,967.25 |
2,269.90 |
2,723.88 |
|
(xxxviii) to note that the Chief Finance Officer has determined that the Council’s basic amount of Council Tax for 2013/14 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Act 1992;
(xxxiv) that the Chief Finance Officer 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:
- 02 recommendations, item 5. PDF 72 KB
- 01 summary, item 5. PDF 84 KB
- 03 outturn, item 5. PDF 78 KB
- 04 revenue, item 5. PDF 129 KB
- 05 resources, item 5. PDF 116 KB
- 06 medium-term, item 5. PDF 88 KB
- 07 schools-budget, item 5. PDF 64 KB
- 08 hra, item 5. PDF 97 KB
- 09 capital-programme, item 5. PDF 129 KB
- 10 treasury, item 5. PDF 103 KB
- 11 prudential, item 5. PDF 87 KB
- 12 control, item 5. PDF 88 KB
- 15 appendices-list, item 5. PDF 42 KB
- 16 app-a, item 5. PDF 28 KB
- 17 app-b, item 5. PDF 16 KB
- 18 app-c, item 5. PDF 98 KB
- 19 app-d(i), item 5. PDF 186 KB
- 21 app-d(ii), item 5. PDF 84 KB
- 22 app-d(iii), item 5. PDF 55 KB
- 23 app-d(iv), item 5. PDF 11 KB
- 24 app-d(v), item 5. PDF 210 KB
- 25a app-d(vi), item 5. PDF 690 KB
- 25b app-d(vi), item 5. PDF 206 KB
- 25c app-e, item 5. PDF 165 KB
- 26 app-f, item 5. PDF 136 KB
- 27 app-f, item 5. PDF 14 KB
- 28 app-g(i), item 5. PDF 41 KB
- 29 app-g(ii), item 5. PDF 97 KB
- 30 app-g(iii), item 5. PDF 76 KB
- 30a app-g(iv), item 5. PDF 59 KB
- 31 app-h, item 5. PDF 22 KB
- 33app-I, item 5. PDF 139 KB
- 35 app-j, item 5. PDF 26 KB
- 36 app-k(i), item 5. PDF 81 KB
- 37 app-k(ii), item 5. PDF 112 KB
- 42 app l(i) L(ii) L(iii), item 5. PDF 63 KB
- 43 app-m, item 5. PDF 133 KB
- 44 app-n, item 5. PDF 118 KB
- 48 app-o, item 5. PDF 43 KB