Issue - meetings

On 15 December 2014 Cabinet considered the council’s overall financial position and a set of draft budget proposals.  Cabinet agreed that:

“…consultation be carried out with residents, the voluntary and community sector, local businesses and other groups as necessary on the draft savings proposals and their consequences.”

Cabinet is now required to recommend a budget for Full Council to consider at its meeting of 2 March 2015.  This report therefore presents a summary of the further work that has been undertaken in order to reach the budget now proposed, and the reasons for the proposals.  Where appropriate the financial information previously presented has been updated, and those remaining uncertainties (as at the date of despatch) are highlighted and addressed.

Subject to the final confirmation of the GLA precept, to approve the following recommendations for Full Council at its meeting on 2 March 2015, to: 

(i)        agree that there is no increase in the Council’s element of council tax for 2015/16.

(ii)       agree the General Fund revenue budget for 2015/16, and note the indicative budget for 2016/17, as summarised in appendix B.

(iii)      agree the Service Area budgets including the cost pressures and savings detailed in Appendices C and D and dedicated schools’ grant as set out in section 6.

(iv)       agree the budgets for central items as detailed in Appendix G.

(v)        agree the Housing Revenue Account budget set out in Appendix I(ii).

(vi)       agree the 2015/16 to 2016/17 capital programme as set out in Appendix J.

(vii)      agree the Treasury Management Strategy and the Annual Investment Strategy for 2015/16 set out in Appendix K.

(viii)     agree the Prudential Indicators measuring affordability, capital spending, external debt and treasury management set out in Appendix L.

(ix)       note the report from the Chief Finance Officer in Appendix E in respect of his statutory duty under Section 25 of 2003 Local Government Act.

(x)        note the advice of the Chief Legal Officer as set out in Appendix M.

(xi)       note the levels of unsupported borrowing forecast for 2015/16, based on the borrowing levels agreed by the Council on 3 March 2014.

(xii)      agree the instalment dates for council tax and NNDR for 2015/16, and the recovery policy for council tax as set out in Appendix H(ii).

(xiii)     agree that decisions on 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.

The report from the Chief Finance Officer reminded the Cabinet of the draft budget proposals put to the Cabinet meeting on 15 December 2014, the subsequent consultation exercise and the requirement to recommend a budget for consideration by Full Council at its meeting on 2 March 2015.  It presented a summary of the further work that had been undertaken in order present the final budget proposal. 

Councillor Pavey (Deputy Leader of the Council) in introducing the report, responded to petitioners who had addressed the Cabinet earlier in the evening. He stressed that the need for budget cuts was as a direct result of central government financial restrictions and referred to the extensive consultation exercises on the budget and also the Borough Plan. Councillor Pavey stated that the council had listened and, in response to views expressed, had decided not to proceed with some proposals such as reductions in Civic Centre customer services opening hours, cutting the Connexions service, closing rough sleeper services and Children’s Centres, reducing home care visits to 15 minutes and the closure of the New Millennium Day Centre. Furthermore, a grant had been received that would allow Energy Solutions work to continue.

Councillor Pavey described the central government budget cuts as brutal and referred to reductions in senior management pay levels, bureaucracy and other efficiency savings that had already been introduced. He recognised the value of school crossing patrols, but felt these could be funded from schools’ balances which were more than council’s general reserve. On Stonebridge Adventure Playground, Councillor Pavey paid tribute to the passion and conviction of the support but a new school and homes were too strong an offer to refuse. The council had, as far as possible, safeguarded services used by the vulnerable. He referred to radical proposals to increase income (such as through shared services) and stated that the suggestion to increase the Council Tax levels which, being restricted to less than 2% without incurring financial penalty, would raise less than £1m and have a disproportionate affect on the working poor. Councillor Pavey cautioned against suggestions that the council should refuse to implement central government spending cuts as this would risk central government intervention which would be less sympathetic to residents, particularly the most vulnerable.

In conclusion, Councillor Pavey reiterated that responsibility for funding cuts rested with central government. The council had listened, had changed its proposals where possible and that efforts had been made to safeguard vulnerable members of the community.

Conrad Hall (Chief Finance Officer) commented on the reductions in local government funding which had led to the current financial pressures. Additionally, the financial squeeze was expected to continue and further savings would need to be found in future years. He stated that to set an illegal budget was not a viable option and to avoid the situation would only increase the problem.  The Chief Finance Officer outlined the structure of his report and confirmed that the Council Tax level for the GLA budget had now been finalised and  ...  view the full minutes text for item 5