Councillor Richard Livingstone, cabinet member for finance, resources and community safety
To discuss the draft budget proposals
Minutes:
Councillor Richard Livingstone, cabinet member for finance, resources and community safety, outlined the budget process for 2012/13. Overall the council had a budget of about £1.6 billion, around £320 million of that was considered in terms of spending as the other elements were restricted or ring-fenced. There had been massive cuts in the public sector and it was expected that these would last 6 years rather than the four initially outlined by central government. Local government was one of the areas hit the hardest by the cuts and Southwark sought savings of around 28% over the next three years. Southwark was reliant on government funding for about three quarters of its spending and around one quarter came from council tax.
The cabinet aimed to keep some money to freeze council tax and aimed to ensure all primary school children received free healthy school meals. Cllr Livingstone explained that last year Southwark had introduced a pay increase to its lowest paid employees and that it was hoped in 2012/13 the London Living wage could be introduced to those who worked indirectly for the council such as contractors. £1million was going to be used to set up a community restoration fund to provide facilities for young people and to help small businesses affected by the disturbances. The cabinet also aimed to introduce a Cleaner, Greener, Safer revenue fund to community councils.
In response to questions from the floor Cllr Livingstone explained that growth items in the budget were areas which required additional funding for example the youth fund or free school meals. There were benefits to providing free school meals across the board rather than asking parents to contribute. Firstly, Southwark had an obesity problem and the meals were healthy as well as free. Also, by providing across the board it de-stigmatised the receipt of free school meals.
Councillor Renata Hamvas added that there was nothing to stop parents contributing to schools in other ways for example by giving a donation to school events. She stated that she took part in some of the parent feedback groups and there was lots of anecdotal evidence from parents relating to the benefits of free school meals.
Cllr Livingstone was asked about concessionary fares and would they continue to be provided. He explained that they hoped to continue the service but there were new pressures to absorb as fares went up so did the cost to the council. There were also pressures for other boroughs without the level of public transport use as in Southwark to contribute less to the scheme.
In response to questions on the transition fund and partnerships with the voluntary sector Cllr Livingstone explained that the council was considering how best to work with the voluntary sector in order to maximise resources, the council would give organisations three months notice if they planned to reduce their funding in order to give them time to plan ahead, the transition fund was available for organisations to apply for in order to help them adapt to change. Cllr Livingstone welcomed new ideas on partnership with the voluntary sector. The council were looking at if services could be set up as social enterprises and if there were opportunities to work with other London Borough’s to deliver services in a better way.
Cllr Mills asked about the youth restoration fund and Cllr Livingstone explained that around half of that would be available for youth facilities and that the council would work with bodies in the voluntary sector involved in youth provisions to work out a criteria for that funding. Residents suggested that the council look beyond youth organisations in establishing the fund as other groups also had ideas, for example grandparents.
A resident asked about the level of council tax Southwark expected to collect. Southwark had brought services in house to improve the rate of collection and it was expected that around 96% would be collected as more people move into the borough more would be collected from council tax but this would increase pressure on services.
In response to further questions Cllr Livingstone explained that it was not clear what level the GLA element of council tax would be set at. Adult social care was one of the biggest elements of the council’s budget and the council were working to keep some housing shelters open compared to other boroughs which had closed all of theirs. The council was also working with other organisations such as the police and immigration services identifying that the Olympics may add pressures.