Issue - meetings

To note the key issues contained within the chancellor’s budget statement and how they impact on the council.

To receive a further report back to cabinet in November 2015 to include any further settlement information, savings identified during the second round of budget challenge meetings and further budget options necessary to achieve balanced budgets over the next three years.

RESOLVED:

1.  That the key issues contained within the chancellor’s budget statement insofar as they impact on the council especially with regard to council housing and welfare benefits be noted.

2.  That the potential reduction in settlement funding for the council between 2016/17 and 2018/19 of £76.1m arising from London Councils most recent predictions, as shown in the table in paragraph 17 of the report be noted.

3.  That the real terms net budget shortfall for the period 2016/17 – 2018/19 of around £96m after taking account of inflation and known cost pressures be noted.

4.  That it be noted that funding for local authorities will not be finalised until publication of the Comprehensive Spending Review on 25 November 2015, and that Southwark’s share will not be known until the provisional grant settlement, currently scheduled for November or December.

5.  That the chancellor’s announcement subsequent to the budget requiring departments with unprotected budgets (including local government) to model two scenarios of cost reductions of 25% and 40% by 2020 be noted.

6.  That the government consultation seeking options for delivering in year reductions in public health funding, equivalent to 6.2% of the ring-fenced grant be noted.

7.  That the actions to meet the challenge currently being included in the budget model as shown in paragraphs 62 to 78 of the report be noted.

8.  That the updated Fairer Future Budget Principles as shown in Appendix A of the report be agreed.

9.  That consultation on the difficult choices to be made should be carried out over the coming months, and to take account of the equalities impact of any decisions be agreed.

10.  That officers be instructed to submit a further report to cabinet in November 2015 to include any further settlement information that becomes available, savings identified during the second round of budget challenge meetings, and on further budget options necessary to achieve balanced budgets over the next three years.