Decision details

To recommend a balanced budget for 2013/14 to council assembly in February 2013

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 is committed to publishing budget proposals at the earliest possible opportunity to ensure they are available to the public for comments and questions.  Under the council’s constitution there is a requirement for the overview and scrutiny committee to review and challenge budget proposals.  Presenting the report to this cabinet meeting gives the opportunity for debate prior to presentation of final budget figures at council assembly on 27 February 2013.

RESOLVED:

1.  That it be noted that the Autumn Statement was published on 5 December 2012 with details of the provisional settlement for local government for 2013/14 and 2014/15 received on 20 December 2012.

2.  That the initial analysis of the implications for the council of the Autumn Statement and the provisional settlement be noted.

3.  That the new funding arrangements for local government be noted, particularly the arrangements for the localisation of business rates and the risks and opportunities that this creates.

4.  That the response to the provisional statement made to the Department for Communities & Local Government (DCLG) by the cabinet member for finance, resources and community safety, including specific references to the timing of the settlement and related information be noted.

5.  That the loss of Early Intervention Grant (EIG) of £6.1m in 2013/14 and a further provisional loss of £918k in 2014/15 be noted.

6.  That the 2013/14 budget proposals contained within the report to achieve a balanced budget for consideration by cabinet with particular reference to the notional 2013/14 budget approved by council assembly in February 2011 be noted.

7.  That the strategic director of finance and corporate services prepare a further report setting out a balanced budget for 2013/14 for approval by cabinet on 12 February 2013 for recommendation to council assembly on 27 February 2013, including:

·  the intention to freeze Council Tax at current levels and to accept the government’s freeze grant arising from this decision.

·  the commitment to new growth and commitments of £11.8m per annum, including new commitments to support welfare provision of approximately £3.5m, in addition to the creation of a welfare hardship fund (as in paragraph 8).

·  the target to save approximately £24.9m per annum arising from efficiencies, income generation and other savings.

·  the provision of contributions from council balances of £6.7m in consideration of the need to make best use of these balances during a period of significant reductions in government funding.

·  the inclusion of ring fenced Public Health funding consistent with the announcement by DCLG for the council and note that this function will be included within the council budget statements moving forward.

·  the transfer from the Department of Works and Pensions of Social Grant funding for small grants, crisis loans and administration and the intention to allocate this grant in full to support a council scheme that will be developed to support the most vulnerable residents in Southwark.

8.  That the setting aside from balances and reserves the specific sum of £800k in 2013/14 created by the proceeds generated as a consequence of Council Tax reforms approved by council assembly for the purposes of a Welfare Hardship Fund be noted.

9.  That the strategic director of finance and corporate services and strategic director of housing and community services make recommendations on how the Welfare Hardship Fund may be managed and administered to target the most vulnerable residents and groups in Southwark.

10.  That it be noted that performance reports are being prepared for both the Youth and Community Restoration Funds and the commitment that will be made to the Youth Fund for a further three years to 2016/17 also be noted.

11.  That the provisional settlement for 2014/15 be noted and the strategic director of finance and corporate services prepare detailed budget options for consideration by cabinet in the spring of 2013 for wider consultation with residents and other stakeholders.