Agenda item
The 2011/12 Budget and Council Tax
- Meeting of Council, Monday 28 February 2011 7.00 pm (Item 6.)
- View the declarations of interest for item 6.
Report from the Director of Finance and Corporate Services circulated separately.
Minutes:
The Council had before it a report from the Director of Finance and Corporate Services seeking approval for the 2011/12 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 2011/12 General Fund revenue budget;
- the 2011/12 Schools Budget;
- the 2011/12 Housing Revenue Account;
- the Council’s capital programme for 2011/12 to 2014/15;
- 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 and put forward an amendment to the recommendations which proposed additional areas of expenditure and additional savings to fund them.
Councillor Lorber spoke to the meeting and moved an amendment which proposed a number of alternative proposals to the proposed budget.
Councillor HB Patel spoke to the meeting and moved an amendment which proposed a change to the proposed budget.
Councillor Butt thanked officers for their work in putting together the budget now before members. He referred to the financial circumstances the Council was in as a result of the significant reduction in resources. He felt that the standard of living for Brent residents would be undermined by the level of cuts being imposed.
Councillor Allie, as chair of the Budget and Finance Overview and Scrutiny Committee, was invited by the Mayor to speak but did not wish to.
A general debate followed with members expressing views on the proposals from the Executive. It was submitted that the budget sought to protect the most vulnerable. Reference was made to the wider economic situation and that other public authorities such as the police were having to make significant savings. Views were expressed on the libraries transformation project with some opposing any closures and others recognising the challenges the service faced. Aspects of the amendments put to the meeting were referred to, including the future of Charteris sports centre, the festivals programme, and additional funding for environmental services. Reference was made to the external support gained for the Welsh Harp Centre and the approach to funding the youth service. A view was submitted that funding levels to the special educational needs service needed to be restored. There was also concern expressed over the wider impact on schools from aspects of the budget. The point was made that the Council faced having to make front loaded, large scale cuts which would inevitably have some painful implications. Nevertheless a lawful budget had been delivered on time and with a nil council tax increase. There was support for the continued funding of advice services. The housing issues were referred to including the provision of decent homes, the housing benefit increases and the impact on homelessness. Members expressed differing views over the level of cuts the Council was required to make and the level of reserves required.
Councillor HB Patel asked that an amendment be made to the amendment from the Liberal Democrat Group on helping Brent’s environment by deleting reference to the Liberal Democrats and replacing it with the Liberal Democrats/Conservative joint administration. This amendment was accepted by Councillor Lorber.
The Council voted on the amendment in the name of Councillor HB Patel which was declared LOST.
The Council voted on the amendment in the name of Councillor Lorber, as amended, which was declared LOST.
The Council voted on the amendment in the name of Councillor John which was declared CARRIED.
RESOLVED:-
In respect of Section 3
(i) that the final 2009/10 outturn be noted;
(ii) that the latest forecast for the General Fund outturn (as detailed in Appendix A(i) of the report) for 2010/11 be noted;
(iii) that the 2010/11 budget virements (as detailed in Appendix A(ii) of the report) be agreed;
In respect of Section 4
(iv) that the process, including consultation, that has led to these budget proposals be noted and to note that the council remains in discussion with a number of groups about the council’s library strategy, Charteris Sports Centre and other council services which may have an effect on the council budget.
(v) that the General Fund revenue budget for 2011/12, as summarised in Appendix B of the report, be agreed subject to the following amendments:
- Additional Areas of Expenditure:
Area |
Proposal |
Additional Cost |
|
|
£'000 |
Youth Centres |
Wembley – operate at reduced cost/frequency |
81 |
St Raphael's and Dennis Jackson – merger of two teams and re-alignment of programmes of activity to meet local needs |
47 |
|
Advice Centres |
Reduce Advice agency budgets – 12% for each of BTRG and Law Centre and 7% for CAB |
206 |
Domestic Violence |
Victim Support |
110 |
Additional Policing Squad |
Additional 2 police officers and 2 PCSOs |
110 |
Welsh Harp |
Shared cost with 3rd party |
37 |
Total Costs |
|
591 |
- Additional Savings to fund proposals:
Area |
Proposal |
Additional Cost |
|
|
£'000 |
Carbon Tax |
Charge made to schools central budget (recent change in guidance) to follow ‘polluter pays’ principle (subject to discussion at Schools Forum) |
(205) |
Refund of London Councils Grant |
£206k of £249k unallocated grant |
(206) |
Reduction in PCSO’s |
Reduction from 16 PCSOs |
(110) |
Grants |
Additional Grants for Community Safety |
(70) |
Total Costs |
|
(591) |
(vi) that the Service Area budgets including the cost pressures, savings, changes to fees and charges and other adjustments detailed in Appendices C and D of the report be agreed;
(vii) that Appendix F of the report be noted and the budgets for central items and other budgets be agreed;
(viii) that the contingent liabilities and risks set out in this section of the report be noted where appropriate provision be made for them;
(ix) that the approach to balances set out in the report be agreed;
(x) that the report from the Director of Finance and Corporate Services in paragraph 4.36 of the report, in respect of his statutory duty under Section 25 of 2003 Local Government Act, be received;
In respect of Section 5
(xi) that the GLA precept approved at the meeting of the Greater London Assembly on 23rd February 2011 be noted;
(xii) that the advice of officers regarding council tax levels be noted;
(xiii) that there is no surplus or deficit at 31 March 2011 for that part of the Collection Fund relating to community charge;
(xiv) that the advice of the Director of Legal and Procurement as set out in Appendix M of the report be received and noted;
(xv) that the instalment dates for council tax and NNDR for 2011/12, and the recovery policy for council tax as set out in Appendix G(ii) of the report be agreed;
In respect of Section 6
(xvi) that the Medium Term Financial Strategy and the provisional service area cash limits for 2012/13 to 2014/15 set out in Appendix H of the report be agreed;
In respect of Section 7
(xvii) that the Schools Budget set out in Appendix I(i) of the report be agreed;
In respect of Section 8
(xviii) that the Housing Revenue Account budget set out in Appendix J to the report be agreed;
In respect of Section 9
(xix) that the latest forecast outturn position on the 2010/11 capital programme be noted, and the revised budgets be agreed;
(xx) that the properties included within the disposals programme set out in Appendix K(v) of the report be noted;
(xxi) that the 2011/12 to 2014/15 programme as set out in Appendix K(iii) of the report, including the new capital allocations, be agreed;
(xxii) that the inclusion in the Capital Programme of all capital schemes, irrespective of the source of funding be noted and that all schemes be subject to the approval procedures as set out in the Constitution;
(xxiii) that the levels of unsupported borrowing forecast for 2011/12 and future years and the impact on council tax levels be noted;
(xxiv) that the policy on repayment of principal in 2011/12 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 2011/12 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 section 12 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 Director of Finance and Corporate Services be authorised to:
(a) make payments on approved capital schemes in 2011/12.
(b) borrow in 2011/12 up to the limits agreed within the Prudential Indicators.
(c) enter such leasing arrangements as are necessary to finance the programme for 2011/12 and terminate or renegotiate any existing leases.
(d) make such minor adjustments to budgets as are necessary.
(xxxii) that, following the above resolutions and agreeing the budget in Appendix B of the report, it be noted that the effect of all these measures is to produce overall council expenditure in 2011/12 of £268.895m.
(xxxiii) that it be noted that £1.006m is attributable to the net deficit on the Collection Fund.
(xxxiv)to note that at its meeting on 25 January 2011, the General Purposes Committee calculated the amount of 97,252 as its Council Tax Base for the year 2011/12 in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992;
(xxxv) that in relation to the council tax for 2011/12:
the following amounts be now calculated by the Council for the year 2011/12 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:
(a) £1,042,460,000 being the aggregate of the amount that the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act,
(b) £774,571,000 being the aggregate of the amounts that the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act,
(c) £267,889,000 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year,
(d) £164,905,000 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed non-domestic rates and revenue support grant reduced by the amount of the sums which the Council estimates will be transferred in the year from its general fund to its collection fund in accordance with Section 97(4) of the Local Government Finance Act 1988,
(e) £1,058.94 being the amount at (c) above less the amount at (d) above, all divided by the amount for the taxbase specified above calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its Council Tax for the year;
(f) 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 (e) 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)that it be noted that for the year 2011/12 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 |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
206.55 |
240.97 |
275.40 |
309.82 |
378.67 |
447.52 |
516.37 |
619.64 |
(xxxvii)that, having calculated the aggregate in each case of the amounts at (f) 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 2011/12 for each of the categories of dwellings shown below:
Valuation Bands |
||||||||
A |
B |
C |
D |
E |
F |
G |
H |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
912.51 |
1,064.59 |
1,216.68 |
1,368.76 |
1,672.93 |
1,977.10 |
2,281.27 |
2,737.52 |
|
(xxxviii)that the Director of Finance and Corporate Services 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.
(Councillor Brown wished it recorded that he had assented to the amendment moved by Councillor Lorber).
Supporting documents:
- 00 Contents, item 6. PDF 70 KB
- 000 Exec summary, item 6. PDF 90 KB
- 01 Introduction, item 6. PDF 49 KB
- 02 Recommendations, item 6. PDF 73 KB
- 03 The Probable Outturn, item 6. PDF 79 KB
- 04 2011-12 Revenue Budget requirement, item 6. PDF 141 KB
- 05 Resources, item 6. PDF 113 KB
- 06 The Future - Medium Term Financial Strategy, item 6. PDF 100 KB
- 07 Schools Budget, item 6. PDF 65 KB
- 08 Housing Revenue Account 11-12, item 6. PDF 70 KB
- 09 The Capital Programme 201011 to 201415, item 6. PDF 139 KB
- 10 Treasury Management Strategy 2009, item 6. PDF 136 KB
- 11 Setting Prudential Indicators for 2011-12, item 6. PDF 88 KB
- 12 Procedures Required to Control Expenditure, item 6. PDF 89 KB
- 13 List of appendices, item 6. PDF 52 KB
- 14 Appendix A, item 6. PDF 36 KB
- 15 Appendix B, item 6. PDF 15 KB
- 16 Appendix C (SA Budget detail), item 6. PDF 78 KB
- 17 Appendix D(i) - Cost pressures, item 6. PDF 121 KB
- 18 Appendix D(ii) (SA Budget - savings), item 6. PDF 93 KB
- 19 Appendix D(iii) (adjustments), item 6. PDF 72 KB
- 20 Appendix D(iv) -Grants, item 6. PDF 115 KB
- 21 Appendix E(i) - 1st Reading Debate, item 6. PDF 62 KB
- 22 Appendix E (ii) - Budget&FinanceO&S report, item 6. PDF 187 KB
- 23 Appendix F - Central Items, item 6. PDF 153 KB
- 24 Appendix F - Table, item 6. PDF 16 KB
- 25 Appendix G(i) (CTax Property Valuation Bands), item 6. PDF 42 KB
- 26 Appendiis G(ii) - Council Tax and NNDR Instalment Dates and Rec Pol, item 6. PDF 93 KB
- 27 Appendix H - Financial Forecast, item 6. PDF 28 KB
- 28 Appendix I(i) - Dedicated Schools Budget, item 6. PDF 71 KB
- 29 Appendix I (ii) - Schools Forum minutes, item 6. PDF 97 KB
- 30 Appendix J - HRA Obj-Subj, item 6. PDF 23 KB
- 31 Apppendix K(i) - Summary 201011, item 6. PDF 50 KB
- 32 Apppendix K(ii) - Detail 201011, item 6. PDF 240 KB
- 33 Apppendix K(iii) - Summary 201112, item 6. PDF 39 KB
- 34 Apppendix K(iv) - Detail 201112, item 6. PDF 116 KB
- 35 Appendix K (v) - disposal schedule, item 6. PDF 7 KB
- 36 Appendix L(i), L(ii), and L(iii)- annual investment strategy, item 6. PDF 133 KB
- 37 Appendix M - (legal advice), item 6. PDF 108 KB
- 38 Appendix N - Scheme of Transfers and Virements, item 6. PDF 108 KB
- 39 Appendix O (background information), item 6. PDF 44 KB