Issue - meetings

To note draft budget proposals based on a nil council tax increase for 2011/12, and draft indicative budget proposals for 2012/13 and 2013/14, based on a provisional council tax increase of 2.5% for 2012/13 and 2.5% for 2013/14.  Draft proposals are set out in Appendices A to E of the report.

To confirm that the budget principles agreed by cabinet on 21 September 2010 continue to guide and underpin the work of officers in arriving at a final balanced budget.

To agree that a final balanced budget report for 2011/12, with indicative budgets for 2012/13 and 2013/14 be presented to cabinet on 8 February 2011 for recommendation to council assembly due on 22 February 2011. 

This item had not been circulated five clear days in advance of the meeting. The chair agreed to accept the item as urgent due to the council’s obligation to set a lawful budget by statutory deadlines and the need to ensure all the necessary preparatory administrative and financial arrangements were in place prior to the next financial year. All local authorities are required to set their council tax by 11 March 2011; the council is due to set the Southwark Council Tax on 22 February 2011. Any delay to this date would mean the council would have to move its instalment date beyond 1 April 2011 resulting in loss of income to the council.

RESOLVED:

1.  That draft budget proposals based on a nil council tax increase for 2011/12, and draft indicative budget proposals for 2012/13 and 2013/14, based on a provisional council tax increase of 2.5% for 2012/13 and 2.5% for 2013/14 be noted. 

2.  That the budget principles agreed by cabinet on 21 September 2010 continue to guide and underpin the work of officers in arriving at a final balanced budget.

3.  That a final balanced budget report for 2011/12, with indicative budgets for 2012/13 and 2013/14 be presented to cabinet on 8 February 2011 for recommendation to council assembly due on 22 February 2011. 

4.  That it be noted that the  formal response to the consultation on the provisional local government settlement was submitted to government on 17 January 2011.  The response is set out in full at Appendix F of the report.

5.  That the potential new homes bonus that Southwark may be awarded and that £1.5 million of this is committed in the budget for 2011/12 be noted. The finance director to bring back details of how much the borough will receive in 2011/12 to the 8 February cabinet meeting and to set out proposals on how to manage these resources as part of the medium term resources strategy.

6.  That it be noted that 2,430 16-24 year olds in Southwark were claiming job seekers allowance or not in education, employment or training (NEET) in December. The director of children’s services and the finance director to bring forward proposals to 8 February cabinet to consider to mitigate the high youth unemployment in the borough and the impact of the removal of education maintenance allowances.

NOTE: In accordance with overview and scrutiny procedure rules item 22.1 (a) (budget and policy framework) these decisions are not subject to call in.