Issue - meetings

Council assembly to debate the recommendations of the cabinet held on 9 February 2016 for a general fund budget for 2016/17, a freeze in the Southwark element of the council tax and use of flexibility offered by government to support adult social care through a precept and vote on whether to agree them.

To follow.

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 was committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions.  Also, 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 2 February 2016. Presenting this report to cabinet on 27 January 2016 gives the opportunity for debate prior to presentation of final budget figures at council assembly on 24 February 2016.

RESOLVED:

1.  That the provisional settlement announced by the Secretary of State on 17 December 2015, and that the final settlement is expected to be confirmed by the 12 February 2016, be noted

2.  That it be noted that the provisional settlement is for four years with the final three years being indicative, subject to councils making a commitment to efficiency.

3.  That the key issues for Southwark arising from the provisional settlement as set out in the report be noted, including:

·  Loss of grant to the council over the period to 2019/20 of £47.0m (23.8%), profiled as set out in the report;

·  Loss of spending power of £9.5m (3.2%) over the same period although this is subject to a number of government assumptions (including annual increases in council tax) and excludes price and demand pressures facing the council;

·  Indicative grant can be assured by government for this period subject to the council agreeing to an efficiency programme, details still to be confirmed;

·  Consultation will be completed on a revised New Homes Bonus Scheme with ‘sharper’ incentives but with a smaller pot to distribute over the settlement period;

·  New Homes Bonus topslicing previously applied to London local authorities and passported to the GLA for the London LEP will no longer apply with effect from 2016/17;

·  New resources for a Local Authority Better Care Fund have been allocated, although this funding is backloaded in the settlement;

·  Council Tax Freeze Grant will no longer be payable although the Council Tax Referendum Limit will remain at 1.99%;

·  Adult Social Care (ASC) Precept at 2%, subject to confirmation by the Section 151 officer that the precept is being passported to ASC.

4.  That it be noted that while the overall funding position has improved since the cabinet report in September 2015, savings will still need to be made by the council over the next three years in excess of £6m in order to balance the budget.

5.  That it be noted that balances will continue to be released as planned over the next three years in order to mitigate the impact of reductions in government funding and other pressures.

6.  That the balanced general fund budget proposals for 2016/17 contained within the report be noted, including:

·  resources available arising from the provisional settlement;

·  an increase in council tax and retained business rates over the settlement  ...  view the full minutes text for item 9