Agenda item

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 tax reforms approved by council assembly for the purposes of a welfare hardship fund be noted.

10.  That the strategic director of finance and corporate services and strategic director of housing and community services make recommendations on how the welfare hardship fund may be managed and administered to target the most vulnerable residents and groups in Southwark.

11.  That the progress report for both the youth and community restoration funds be noted and the commitment to provide resources for the youth fund for a further three years to 2016/17 be confirmed. That officers prepare a further report for cabinet on how the youth fund can be best used over the extended period to further develop opportunities for improved economic, employment and education success for Southwark’s young people and especially the need to build on the successes of the scheme to date (particularly the scholarship scheme) and all other relevant strategic considerations.

12.  That the strategic director of finance and corporate services set aside provision from earmarked reserves of up to £1m for the business support fund to be allocated over a period of up to three years and the director of corporate strategy be asked to draw up appropriate criteria for the fund.

13.  That the provisional settlement for 2014/15 be noted and that the strategic director of finance and corporate services prepare detailed budget options for consideration by cabinet in the spring of 2013 for wider consultation with residents and other stakeholders.

14.  That the recommendations from the overview and scrutiny committee of 28 January 2013 be noted and that the cabinet member for finance, resources and community safety respond to the committee.

15.  That the proposals in the report for a balanced budget based on a nil council tax increase for 2013/14 for recommendation to council assembly on 27 February 2013 be agreed.  Budget schedules are set out in Appendices A-E of the report.

16.  That given current uncertainties arising from a range of welfare reforms, officers be requested to remove the proposed £55,000 saving for advice services, as detailed in Appendix D of the report, with the cost to be met from council balances or from compensating savings agreed by the strategic director of finance and corporate services.

NOTE: In accordance with overview and scrutiny procedure rule 22.1(a) (budget and

policy framework) these decisions are not subject to call-in.