Agenda item

The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the item as urgent because the council were committed to publishing budget proposals at the earliest possible opportunity to ensure they are available to the public for comments and questions. Presenting the report to cabinet on 13 December 2016 would give the opportunity for debate prior to presentation of budget figures to cabinet on 24 January 2017. 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 30 January 2017.

RESOLVED:

1.  That it be noted that the autumn statement was presented on 23 November and provided little further clarity on local authority funding, subject to the provisional local government funding settlement scheduled for release at some time during December 2017 (paragraphs 27 - 29 of the report).

2.  That it be noted that the Department for Communities and Local Government (DCLG) has confirmed the four year settlement in response to the council’s acceptance of the four year funding settlement (paragraph 18 of the report).

3.  That it be noted that as reported to cabinet in November and given continued uncertainties over adult social care and children’s services cost and demand pressures and government funding sources, the intention is to prepare a balanced one year 2017-18 budget for presentation to cabinet for approval in advance of council assembly in February 2017 (paragraph 16 of the report).

4.  That the reducing level of reserves and balances available to the council to help mitigate the risks of funding reductions moving into future financial years (paragraphs 52 - 54 of the report) be noted.

5.  That the current budget options proposed to help achieve a balanced budget 2017-18 (Appendices B – D of the report) be noted.

6.  That the current budget gap for 2017-18 of £2.6m after the incorporation of these options be noted.

7.  That it be noted that the general fund budget proposals for 2017-18 contained within the report include:

·  Estimated grant resources likely to be available arising from the provisional settlement expected on 16 December (Appendix A of the report)

·  Estimated council tax revenue of £87.5m and retained business rates growth of £8.9m (paragraph 35 of the report)

·  Planned use of balances of £4.0m

·  Planned contingency of £4m (paragraph 55 of the report)

·  Proposals for budget changes in 2017-18 of:

·  commitments £11.0m (paragraphs 38 - 43, Appendix B of the report)

·  efficiencies and improved use of resources £13.3m (paragraphs 44 – 47; Appendix C)

·  income generation proposals of £3.4m(paragraphs 48 - 49; Appendix D of the report)

·  other savings impacting on service delivery of £1.4m (paragraphs 50 –

51; Appendix E of the report)

8.  That it be noted this budget currently assumes that the Southwark element of the council tax continues to remain frozen for 2017-18; this has been the case since 2008-09 (paragraph 24 of the report).

9.  That the proposed approach to address the children’s and adults’ social care budget pressures (paragraphs 30- 33 of the report) be noted.

10.  That it be noted that this budget proposes to use the flexibility offered by the government to support social care through an increase in the adult social care precept, equivalent to 2% of council tax, on the basis that these additional funds will be used exclusively for adult social care (ASC) (paragraph 25 of the report).

11.  That officers complete further work in the light of further notifications from government and recommendations from cabinet and represent a fully balanced budget position for cabinet on 24 January 2017.

12.  That the continuing work underway by strategic directors to complete appropriate equality assessments for all budget proposals in advance of cabinet meeting on 24 January 2017 (paragraphs 61 - 68 of the report) be noted.

13.  That the consultation that took place prior to agreeing the indicative budget options for 2017-18 and 2018-19 and that further consultation will be undertaken for new budget options where necessary or appropriate (paragraphs 56 - 59 of the report) be noted.

14.  That it be noted that the further report to cabinet on 24 January 2017 will be considered by overview and scrutiny committee on 30 January 2017 and that any recommendations arising will be incorporated into the final report to cabinet on 7 February 2017 for recommendation to council assembly on 22 February 2017 (paragraph 60 of the report).