Agenda and minutes

Members are invited to declare, at this stage of the meeting, any relevant financial or other interest in the items on this agenda.

None declared.

RESOLVED:-

that the minutes of the previous meeting held on 14 January 2010 be approved as an accurate record of the meeting.

None.

The Budget Panel will discuss and make recommendations on the draft budget in the 2010/11 budget and council tax report, tracking proposals made during the first reading debate. Councillor Blackman, Lead Member for Corporate Resources and Deputy Leader of the Council, will provide a presentation on the draft budget and answer questions from members. While the Panel will lead the discussion, this meeting is intended to give all non-Executive members the opportunity to participate in the budget scrutiny process and raise any questions or comments they may have on the draft budget. Members may wish to take particular note of the following sections within the budget report:

·         executive summary

·         the budget-making process

·         2010/11 revenue budget requirement

·         the future and medium-term forecast

·         the capital programme 2010/11 to 2012/13

·         value for money.

Copies of the draft budget report will be circulated to the Budget Panel members prior to the meeting.

Councillor Blackman (Lead Member for Resources) introduced the report and delivered a PowerPoint presentation to the Panel.  He confirmed that the report would be presented to the Executive on 15 February 2010 before being put to the Full Council meeting on 1 March 2010 for approval.  Councillor Blackman then provided the Panel with details of the main aspects of the 2010/11 Budget.  He began by outlining the Budget Strategy and he confirmed the commitment to a 0% increase in Council Tax for 2010/11.  Members heard that significant national financial constraints meant that a pro-active and planned strategy was required to meet both the short and medium term challenges and it was anticipated that local authorities would face challenging financial conditions in future years.  Despite the difficult circumstances, it was intended to protect and enhance front line services and to provide sufficient growth to deliver the corporate strategy where resources allow, however most funding would be sought from existing resources or additional grants.  The Panel noted that increases in income from fees and charges would be minimised apart from those that had been statutorily determined.  A robust stance on debt collection would continue and Councillor Blackman confirmed that the highest rate of Council Tax collection was likely to be recorded since the present system had been introduced.  Efforts would continue to ensure that budgets did not overspend, to maintain a reasonable level of balances based on realistic risk assessments, to minimise use of one-off resources and to meet on-going commitments. 

Councillor Blackman advised the Panel that the Improvement and Efficient Strategy was the main policy being pursued to balance the budget in 2010/11 and the subsequent three years.  Although there would be no actual increase in staff pay, an inflation and National Insurance allowance of 0.75% had been provided.  There would be a 0% general inflation allowance outside major contracts, whilst all priority growth would be funded from area based grants, performance reward grants or growth in other specific grants.  The Adult Social Care budget would contain demographic growth pressures through delivery of its Transformation Programme.  Councillor Blackman then referred to the proposed General Fund Revenue Budget, which for 2010/11 totalled £265.469m.  Breaking down the funding sources for 2010/11, £143.6m would come from Business Rates, £101m from Council Tax and £20.9m from the Revenue Support Grant.  Councillor Blackman referred to the breakdown of figures to bridge the Budget Gap from the First Reading Debate which had reduced the General Fund Revenue Budget by £8.878m.  In relation to growth for mainstream funding, the Panel heard that there had been an increase in referrals for children looked after placements, whilst the increase in organic waste collection would lead to a corresponding increase in costs.  The West London Waste Authority had increased their charges, placing more importance on the need to increase waste recycling rates, whilst the growth in concessionary charges was primarily as a result of a reduction in the Government grant. 

Councillor Blackman advised that a total budget reduction of £5.082m, excluding  ...  view the full minutes text for item 4.

Members will have the opportunity to finalise their discussions on the content and format of the budget Panel’s second interim report before it is submitted to the meeting of the Executive on Monday 15 February 2010.

A copy of the Panel’s first interim report it attached for information.

The Chair asked for a response with regard to recommendation 3 in the Second Interim Report concerning the need to assess long term budgetary and service delivery risks.  Councillor Van Kalwala enquired what would happen if the Improvement and Efficiency Strategy did not achieve its objectives.  Councillor Butt sought comments with regard to the Gershon review.

With the permission of the Chair, Councillor Dunwell addressed the Panel.  Councillor Dunwell asked that if any of the £4.4m savings proposed for 2010/11 were not met, would a corresponding amount need to be raised through increases in Council Tax.

In response, Duncan McLeod advised that once the next Comprehensive Spending Review had been undertaken, a clearer picture would emerge with regard to assessing long term budgetary and service delivery risks.  However, a broad approach was being taken and a number of scenarios had been envisaged and consideration of what the Council’s response would be to these had been undertaken, as had been recommended by the Panel.  He stressed that a risk based approach would be needed and that there should be sufficient funds in reserve in case of unexpected circumstances and a detailed plan would be in place in time for the new administration in 2010/11.  Duncan McLeod felt that the Improvement and Efficiency Strategy had much more potential to make greater savings than the £4.4m proposed for 2010/11, however if none of these savings were made, the loss would be manageable, whilst there was also a 40% risk adjustment built-in.  The Panel was advised that once the Budget had been approved, no changes to the Council Tax could be made and if the savings target from the Improvement and Efficiency Strategy was not met for 2010/11 then savings would need to be identified elsewhere.  Duncan McLeod confirmed that the Gershon review had shown what savings were being made and helped facilitate a much tighter system of control.

Members then agreed to the Chair’s suggestion that an additional recommendation be added to the report that the Council pursues the accurate reflection of the population of Brent in the 2011 census.

RESOLVED:-

that the recommendations on the Panel’s Second Interim Report be agreed and to include an additional recommendation that the Council pursues the accurate reflection of the population of Brent in the 2011 census.

The date of the next meeting of the Budget Panel is to be confirmed at the relevant meeting of Full Council in May 2010.

It was noted that the next meeting of the Budget Panel would be confirmed at the annual Council meeting in May 2010.

Notice of items to be raised under this heading must be given in writing to the Democratic Services Manager or his representative before the meeting in accordance with Standing Order 64.

None.