Issue - meetings

To note the local government settlement for 2012/13 and consider the proposed budget for that year. If agreed, the proposed budget will be considered by council assembly in February 2012.

This item had not been circulated five clear days in advance of the meeting. The chair agreed to accept this item as urgent as the council had an obligation to set a lawful budget by the statutory deadlines and ensure all the necessary preparatory administrative and financial arrangements were in place prior to the next financial year. The council also required sufficient time to consider the implications of the government settlement on the budget proposals. Cabinet was also required to recommend a budget to council assembly for approval on 29 February 2012.  All local authorities are required to set their council tax by 11 March 2012. Any delay to this date would mean the council would have to move its instalment date beyond 1 April 2012 resulting in loss of income to the council.

RESOLVED:

1.  That it be noted that the budget principles agreed by cabinet on 21 September 2010, supported by the ten fairer future promises agreed by council assembly on 6 July 2011, have guided and underpinned the process for budget setting.

2.  That it be noted that the final local government grant settlement for 2012/13 was announced on 31 January 2012 by the Department of Communities and Local Government (DCLG) with no changes from the provisional settlement.

3.  That it be noted that the budget consultation on the three year budget 2011/12-2013/14 took place place with residents and community groups from September 2010 to February 2011 and that the feedback from that consultation was given due consideration by cabinet for proposals for 2011/12 and indicative proposals for 2012/13.

4.  That it be noted that subject to agreement by council assembly to the budget recommendations, there will be a need to complete and invoke both statutory consultation procedures where necessary and the council’s own policies and procedures as appropriate, in order to implement the savings and income generation proposals detailed in Appendices C to E of the report.

5.  That it be noted that the Greater London Assembly will set its precept on 9 February 2012, as described in paragraphs 218 to 220 of the report . It is expected that a 1% reduction will be announced, reducing a band D property from £309.82 to £306.72.

6.  That it be noted that because government funding beyond 2012/13 is not known, and is unlikely to be announced until November 2012, the finance director proposes that a single year budget for 2012/13 only will be set. The report sets out changes that are likely to impact on 2013/14 and beyond, but at this stage cannot be quantified. Officers will report back at the earliest opportunity once any announcements are made.

7.  That it be noted that the recommendations from the overview and scrutiny committee of 9 January 2012 are included as appendix F to the report.

8.  That the need to use balances of £4.4m in order to support service delivery and deliver a balanced budget in 2012/13 be noted.

9.  That the confirmation of the payment of New  ...  view the full minutes text for item 7