Agenda item

1.1.       Agree an overall 3.99% increase in the Council’s element of council tax for 2016/17 with 2% as a precept for Adult Social Care and a 1.99% general increase.

1.2.       Agree that if the 2% adult social care precept in the Council’s element of council tax is rejected, Adult Social Care expenditure will be cut by £1.9m in 2016/17 from the levels proposed in this paper.

1.3.       Agree the General Fund revenue budget for 2016/17, as summarised in Appendix B.

1.4.       Agree the cost pressures and savings detailed in Appendix D and dedicated schools’ grant as set out in section six.

1.5.       Agree the revisions set out in paragraphs 6.3, 6.4 and 6.5 to the savings originally proposed in the budget set in the 2015/16 budget.

1.6.       Agree the revision set out in paragraphs 6.6 to remove saving MGF02 from the 2017/18 and 2018/19 budget proposals.

1.7.       Note the Chief Finance Officer's assessment of risks as set out in Appendix E.

1.8.       Note the report from the Budget Scrutiny Panel in Appendix F

1.9.       Note the results of consultation as set out in section 9

1.10.    Agree the budgets for central items as detailed in Appendix G.

1.11.    Agree the capital programme as set out in Appendix J.

1.12.    Agree the Treasury Management Strategy and the Annual Investment Strategy for 2016/17 set out in Appendix K.

1.13.    Agree the Prudential Indicators measuring affordability, capital spending, external debt and treasury management set out in Appendix L

1.14.    Note the advice of the Chief Legal Officer as set out in Appendix M

1.15.    Agree the categorisation of Earmarked Reserves and Provisions set out in Appendix N

1.16.    Agree the schedules of fees and charges set out at Appendix Q

For Council

These recommendations only include a provisional Council Tax level for the GLA as its final budget was not agreed when this report was dispatched.  This means that the statutory calculation of the total amount of Council Tax under Section 30(2) of the Local Government Finance Act 1992 may be amended by the final Greater London Authority precept.

1.17.    In relation to the council tax for 2016/17 we resolve:

            That the following amounts be now calculated by the Council for the year 2016/17 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 as amended:

(a) £1,025,870,075   being the aggregate of the amount that the Council estimates for the items set out in Section 31A(2) of the Act.

(b) £927,580,000      being the aggregate of the amounts that the Council estimates for the items set out in Section 31A(3) of the Act.

(c)  £98,290,075       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)  £1,101.24           being the amount at (c) above, divided by the amount for the taxbase of 89,254, agreed by the General Purposes Committee on the 25^th Jan 2016, 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

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.

1.18.    That it be noted that for the year 2016/17 the proposed Greater London Authority 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 are as shown below:

1.19.    That, having calculated the aggregate in each case of the amounts at paragraph 2.15(e) and 2.16, 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 2016/17 for each of the categories of dwellings shown below:

That it be noted that the Chief Finance Officer has determined that the Council’s basic amount of Council Tax for 2016/17 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Act 1992.

(a)       That the Chief Finance Officer be and is hereby authorised to give due notice of the said council tax in the manner provided by Section 38(2) of the 1992 Act.

(b)       That the Chief Finance Officer be and is hereby authorised 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)        That the Chief Finance Officer be and is hereby authorised 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.

1.20.    That in the event that the GLA sets a different council tax precept to that set out in this report (which was the published provisional amount at the date of despatch) that authority be delegated to the Chief Finance Officer to vary the amounts at 2.20, but only insofar as to reflect the GLA decision, and to make consequential, but no other, amendments to the amounts at 2.21.

Councillor Pavey (Deputy Leader) in introducing proposals for the 2016/17 budget, referred to the extensive budget consultation exercise including meetings of Brent Connects and thanked all who had taken part. He stressed the efforts that the council had made to listen and respond to residents’ concerns, for example in removing plans to reduce the Highways maintenance budget, and felt that the community broadly accepted the proposals. The council was required to make a further £45m of budget cuts, a total of 70% between 2010 and 2018. Councillor Pavey set out key messages which including achieving savings through improved procurement, generating additional income, offering high quality support through children’s centres and home care. Councillor Pavey stated that the council had no option but to increase council tax levels to continue help protect the most vulnerable.  A four per cent increase was proposed, half of which would be ring fenced to protect the most vulnerable. He also referred to the assistance available under the Council Tax Support Scheme. Councillor Pavey advised that a meeting with the Minister for Local Government had not offered any comfort and acknowledged that it was a difficult time for residents.

The Chief Finance Officer, Conrad Hall, advised that the final settlement had been debated by Parliament earlier in the day and transitional funding would be made available. He would advise members of any required change to the figures.

Councillor Butt (Leader of the Council) reminded the Cabinet that the budget proposals had been in the public domain since the end of the previous year and had been thoroughly debated. He referred to central government proposals such as pay to stay and the bedroom tax which would have a significant adverse impact and the council’s aim to help the vulnerable and needy.

RESOLVED:

(i)         that approval be given to an overall 3.99% increase in the council’s element of council tax for 2016/17 with 2% as a precept for Adult Social Care and a 1.99% general increase;

(ii)        that if the 2% adult social care precept in the Council’s element of council tax was rejected, Adult Social Care expenditure be cut by £1.9m in 2016/17 from the levels proposed in the report from the Chief Finance Officer;

(iii)       that agreement be given to the General Fund revenue budget for 2016/17, as summarised in Appendix B;

(iv)       that agreement be given to the cost pressures and savings detailed in Appendix D and dedicated schools’ grant as set out in section six;

(v)        that the revisions set out in paragraphs 6.3, 6.4 and 6.5 of the report from the Chief Finance Officer to the savings originally proposed in the budget set in the 2015/16 budget be agreed;

(vi)       that the revision set out in paragraphs 6.6 to remove saving MGF02 from the 2017/18 and 2018/19 budget proposals be agreed;

(vii)      that the Chief Finance Officer's assessment of risks as set out in Appendix E be noted;

(viii)     that the report from the Budget Scrutiny Panel in Appendix F be noted;

(ix)       that the results of consultation as set out in section 9 be noted;

(x)        that the budgets for central items as detailed in Appendix G be agreed;

(xi)       that the capital programme as set out in Appendix J be agreed;

(xii)      that the Treasury Management Strategy and the Annual Investment Strategy for 2016/17 set out in Appendix K be agreed;

(xiii)     that agreement be given to the Prudential Indicators measuring affordability, capital spending, external debt and treasury management set out in Appendix L;

(xiv)     that the advice of the Chief Legal Officer as set out in Appendix M be noted;

(xv)     that agreement be given to the categorisation of Earmarked Reserves and Provisions set out in Appendix N;

(xvi)     that the schedules of fees and charges set out at Appendix Q be approved.