Agenda item

To follow.

This item had not been circulated five clear days in advance of the meeting. The chair agreed to accept the item as urgent as the council was committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions.  Also, under the council’s constitution there is a requirement for the overview and scrutiny committee to review and challenge budget proposals and this is due to take place on 2 February 2016. Presenting this report to cabinet on 27 January 2016 gives the opportunity for debate prior to presentation of final budget figures at council assembly on 24 February 2016.

RESOLVED:

1.  That the provisional settlement announced by the Secretary of State on 17 December 2015, and that the final settlement is expected to be confirmed by the 12 February 2016, be noted

2.  That it be noted that the provisional settlement is for four years with the final three years being indicative, subject to councils making a commitment to efficiency.

3.  That the key issues for Southwark arising from the provisional settlement as set out in the report be noted, including:

·  Loss of grant to the council over the period to 2019/20 of £47.0m (23.8%), profiled as set out in the report;

·  Loss of spending power of £9.5m (3.2%) over the same period although this is subject to a number of government assumptions (including annual increases in council tax) and excludes price and demand pressures facing the council;

·  Indicative grant can be assured by government for this period subject to the council agreeing to an efficiency programme, details still to be confirmed;

·  Consultation will be completed on a revised New Homes Bonus Scheme with ‘sharper’ incentives but with a smaller pot to distribute over the settlement period;

·  New Homes Bonus topslicing previously applied to London local authorities and passported to the GLA for the London LEP will no longer apply with effect from 2016/17;

·  New resources for a Local Authority Better Care Fund have been allocated, although this funding is backloaded in the settlement;

·  Council Tax Freeze Grant will no longer be payable although the Council Tax Referendum Limit will remain at 1.99%;

·  Adult Social Care (ASC) Precept at 2%, subject to confirmation by the Section 151 officer that the precept is being passported to ASC.

4.  That it be noted that while the overall funding position has improved since the cabinet report in September 2015, savings will still need to be made by the council over the next three years in excess of £6m in order to balance the budget.

5.  That it be noted that balances will continue to be released as planned over the next three years in order to mitigate the impact of reductions in government funding and other pressures.

6.  That the balanced general fund budget proposals for 2016/17 contained within the report be noted, including:

·  resources available arising from the provisional settlement;

·  an increase in council tax and retained business rates over the settlement period;

·  resources arising from the ASC precept;

·  resources available from the New Homes Bonus scheme;

·  use of balances;

·  corporate contingency;

·  commitments;

·  income generation;

·  efficiencies and improved use of resources and;

·  other savings impacting on service delivery.

7.  That the intention to freeze council tax for a further year in 2016/17, subject to review in future years, be noted.

8.  That the intention to accept the 2% adult social care precept in 2016/17 and beyond be noted.

9.  That the response to DCLG from the leader of the council to the consultation on the provisional settlement and his request to meet with the Secretary of State be noted.

10.  That the indicative budgets for 2016/17, 2017/18 and 2018/19 on the basis of the indicative funding for those years be noted.

11.  That it be noted that this report is to be considered by the overview and scrutiny committee on 2 February 2016 and that any recommendations arising which are agreed by cabinet will be incorporated into the final report to cabinet on 9 February 2016 including balanced budgets for 2016/17 and for 2017/18 and 2018/19 for recommendation to council assembly on 24 February 2016.

12.  That officers be requested to complete further work in the light of further notifications from government and recommendations from cabinet and from overview and scrutiny committee and represent balanced budgets for the next three years at cabinet on 9 February 2016.

13.  That the feedback to date from the public budget consultation exercise be noted.

14.  That the continuing work underway by strategic directors to complete EQIA in advance of council assembly on 24 February 2016 be noted.