Agenda and minutes
Venue: Committee Room 4, Brent Town Hall, Forty Lane, Wembley, HA9 9HD. View directions
Contact: Lisa Weaver, Democratic Services Officer 020 8937 1358 Email: lisa.weaver@brent.gov.uk
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Declarations of personal and prejudicial interests Members are invited to declare at this stage of the meeting, any relevant financial or other interest in the items on this agenda. Minutes: None declared. |
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Deputations (if any) Minutes: None |
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Minutes of the previous meeting PDF 91 KB Minutes: RESOLVED:-
that the minutes of the previous meeting held on 8 February 2012 be approved as an accurate record of the meeting. |
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Matters arising (if any) Minutes: None |
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Budget Strategy 2013/14 to 2015/16 PDF 107 KB This report was presented to the Executive on 16 July 2012. The report sets out the financial prospects for the Council for the next three years. Additional documents:
Minutes: Mick Bowden (Deputy Director of Finance and Corporate Services) introduced the report before members which set out the financial prospects for the Council for the next three years. The report had previously been submitted to the Executive on 16 July 2012 and linked with the localisation of council tax benefit which was seen as a key risk in the budgets for future years.
The Deputy Director of Finance and Corporate Services outlined that although the £42m of savings identified in 2011/12 were achieved leaving the council in a stronger position to face the challenges ahead, the council was not yet half way through the 28% of savings that had to be made due to Government cuts. It was acknowledged that there was a permanent problem from weak GDP growth, with a 13% loss of trend output, with the economy not reverting back to trend as quickly as had been the case in previous recessions. Additionally, the gap in public spending and receipts was highlighted and, despite action being taken, there was a long way to go before the gap could be closed and debt levels may not be back to ‘normal’ until 2035. Mick Bowden highlighted the pressures placed on spending due to demographic changes in age related spending, with increased expenditure in health, long term care and pensions, resulting in the need to address the challenge of social care and long term structural changes in public spending. The Deputy Director of Finance and Corporate Services explained that central government savings targets were lower and later than those for local government. Overall central government achieved a £5.3bn underspend in 2011/12, with the NHS delivering the biggest underspend in cash terms although relatively small compared to its overall budget. It was highlighted that Brent’s approach to managing its budget had been successful resulting in £42m savings being delivered as well as a total underspend on services of £1.2m. It was noted that the funding streams available to schools had changed with an underspend of £1m being achieved on a like for like basis. The outturn for the HRA was in line with forecast and under the new financial arrangements a 30 year business plan is being developed. In the current year emerging cost pressures had been identified by directors, in particular in relation to adult social care, children’s social care, the one council programme and changes to housing benefit and temporary accommodation, although borrowing could now be achieved at lower interest rates.
Mick Bowden drew the committee’s attention to the LGA funding model which addressed the pressures faced by councils’ nationally and how it relates to spending, with a projection that spending will be geared towards children, adult and social care as well as environment, particularly waste, resulting in reduced spending for other services. The LGA model highlighted that efficiency savings would not be enough with reform to social care being required and public services working together and potentially cutting services to meet the demanding spending costs regarding age related services ... view the full minutes text for item 5. |
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Localisation of Council Tax Benefit: Financial Impacts and proposed mitigation PDF 189 KB This report sets out the financial impact to the Council of the government’s policy on the localisation of Council Tax Benefit (CTB) and potential mitigation of this.
Minutes: David Oates (Head of Benefits) introduced the report which set out the implications anticipated from the government’s proposals for Local Authorities to implement a new local Council Tax Support Scheme to replace the existing national Council Tax Benefit scheme from 1 April 2013. The implications of such a tight timetable were highlighted including a consultation document currently in circulation and legislation unlikely to gain royal ascent until October. The proposals will see the existing demand-led Benefit subsidy scheme replaced by a fixed grant that will be at least 10% lower in value than the current 100% subsidised scheme however for Brent, it could potentially be a 13.7% cut. In addition increases in council tax and other increases in benefits expenditure through caseload growth could increase the estimated deficit to approximately £5.2m. It was explained that the savings could be achieved through either being made through the general fund, partially by using increased revenue obtained from Council Tax exemption and discount changes currently proposed by the government; or by changing the current Council Tax Benefit scheme. It was noted that if a new scheme had not been devised by 31st January, a default scheme would be put in place resulting in the deficit being met by the general fund. The scheme will be fixed-grant funded, unlike the current demand led scheme and will be designed by the local authority with the inclusion of several centrally-imposed parameters such as a requirement to protect pensioners. It was reported that although growth would not be taken into account, resulting in the council having to meet any shortfall from its own budgets, the risk would be shared by the GLA with a 22.46% distribution share in council tax.
The Head of Benefits informed the committee of the various scenarios as outlined in 6.7 and the potential impacts on cash flow, council tax non collection, debt provision and increased admin and software costs. To meet achieve the savings, a combination of a new scheme was being proposed alongside reductions in council tax exemptions and discounts to generate more council tax revenue to offset the deficit. A number of options had been considered within the discretion provided, with the following option being proposed subject to council approval later during the autumn –
1) Changes to Council Tax exemptions and discounts - · Class A – 50% discount · Class C – nil discount · Second homes – nil discount · Long-term empty properties – 150% charge
2) Changes to Council Tax Benefit –
The proposed scheme is based on six key principles and an assumed 80% collection rate, with Principle 1: “Everyone should pay something” being key to ensure that the savings can be achieved. A variety of risks had been identified with the proposed changes including the unknown reaction of claimants, lack of full information relating to claimants in receipt of certain DWP benefits resulting in assumptions having to be made when carrying out modelling, changes to software and the scheme being introduced alongside various other welfare reforms. Discussions ... view the full minutes text for item 6. |
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Budget & Finance Overview & Scrutiny Committee 2012/13 - Work Programme PDF 91 KB This report provides a brief overview of the work of the Budget & Finance Overview & Scrutiny Committee in 2011/12. It also aims to assist the members with their discussions about the Budget & Finance Overview & Scrutiny work programme for 2012/13. Additional documents:
Minutes: Members considered the work of the Committee during 2012/13 and the issues arising from consideration of the 2012/13 - 2015/16 budget strategy. The committee confirmed that they were happy to discuss the issues currently detailed on the work programme, with input from Directors as well as the addition of the following:
· Business rates · One Council programme update · Environment update · Adult social care · Children social care · Capital Programme
RESOLVED:-
that the work programme be amended and noted |
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Any Other Urgent Business 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. Minutes: None |
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Date of Next Meeting The next scheduled meeting of the Committee is on 11 September 2012. Minutes: The date of the next meeting would take place on 11 September 2012. |