Issue - meetings

Council assembly to debate the recommendations of the cabinet held on 12 February 2013 for a general fund budget for 2013/14 of £334m and a nil council tax increase for 2013/14 and vote on whether to agree them.

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

This report was considered in conjunction with the report from the overview and scrutiny committee (see item 9). Councillor Catherine Bowman, chair of the overview and scrutiny committee presented the committee’s recommendations.

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 by the council on 20 December 2012.

2.  That the analysis of the implications for the council of the autumn statement and the provisional settlement and that the final settlement is not now due until 13 February 2013 be noted.

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

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 release of the settlement and related information be noted.

5.  That the government has announced a spending review for spring 2013 and the potential for further changes to the 2014/15 provisional settlement be noted.

6.  That the loss to the council of early intervention grant (EIG) of £6.1m in 2013/14 and a further provisional loss of £918,000 in 2014/15 be noted.

7.  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.

8.  That it be noted that the balanced budget for 2013/14 for recommendation to council assembly on 27 February 2013, includes:

·  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 set out in paragraph 9 of the report)

·  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 it be noted 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.

9.  That the setting aside from balances and reserves the specific sum of £800,000 in 2013/14 created by the proceeds generated as a consequence of council  ...  view the full minutes text for item 8