Agenda item

For cabinet to recommend the proposals in this report for a balanced budget based on a nil council tax increase for 2015/16 to Council Assembly on 25 February 2015.

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 is committed to publishing budget proposals at the earliest opportunity to ensure that they are available to the public for comments and questions. Additionally, under the council’s constitution there is a requirement for the overview and scrutiny committee to review and challenge the budget proposal. This took place on 2 February 2015 and recommendations arising from this meeting are included in paragraphs 97 to 102 of the report.

RESOLVED:

1.  That it be noted that the government’s Autumn Statement was delivered on 3 December 2014; that the final settlement was announced on 3 February 2015, but is still subject to parliamentary approval. The motion to approve the settlement in Parliament will be on 10 February 2015.

2.  That the provisional settlement contained no indicative grant settlement figures for 2016/17 or beyond be noted.

3.  That it be noted that the final settlement included additional resources for the council of £750,000 in respect of an increased allocation to assist in dealing with pressures on local welfare and health and social care, and that this has been used to substitute the need for use of the Hardship Fund to support the Southwark Emergency Support Scheme in 2015/16.

4.  That it be noted that the Hardship Fund resources will be returned to ring fenced earmarked resources to be allocated by cabinet to support those most in need at some future date.

5.  That it be noted that representations have been made to the Minister by the leader and by the cabinet member for finance, strategy and performance with regard to the provisional settlement.

6.  That specific funding by government for Local Welfare Provision has been removed from the settlement be noted.

7.  That it be noted that cabinet have previously agreed to extend the Southwark Emergency Support Scheme until 2017/18, despite the withdrawal of this Social Welfare Provision funding and that budget provision for 2015/16 is provided in the budget proposals contained in the report.

8.  That on 27 January 2015 cabinet agreed to set a one year budget for 2015/16 in the context of uncertainty over funding levels for 2016/17 and beyond be noted.

9.  That balanced general fund budget proposals for 2015/16 contained within the report be noted, including resources available, commitments, income generation efficiencies and improved use of resources and other savings impacting on service delivery.

10.  That the balanced budget plans for council tax to be frozen for 2015/16 be noted.

11.  It be noted that these proposals for 2015/16 include the impacts of:

·  The provisional grant settlement

·  An increase in council tax revenue to reflect an increase in the taxbase and improved collection rates

·  An increase in retained business rates

·  Pay awards for council staff in line with national agreements

·  Contractual inflation

·  Top slicing of new homes bonus to redirect resources to the Local Enterprise Partnership (LEP)

·  Reduction in grant to support housing benefit administration

·  One off use of reserves of £6.2m

·  One off reductions in insurance fund provisions of £300,000 to reflect reduced insurance risks

·  Contingency provision retained at £4m to help mitigate risks inherent within the council’s savings programme for 2015/16 and beyond.

12.  That the need in the context of these proposals to monitor especially the implementation of the Care Act during 2015/16 and any further and unforeseen implications on general fund budget proposals be noted.

13.  That the feedback from the public budget consultation exercise be noted.

14.  That the delivery of the Fairer Future Council Plan commitments is included in this budget be noted.

15.  That the recommendations of the overview and scrutiny committee on 2 February 2015 contained in paragraphs 97 to 102 of the report be taken into account and the cabinet member to respond to the committee.

16.  That the draft 2015/16 to 2017/18 medium term resources strategy included in paragraphs 91 and 92 and Appendix L of the report be noted.

17.  That the proposals in the report for a balanced budget based on a nil council tax increase for 2015/16 for recommendation to council assembly on 25 February 2015 be agreed. The budget schedules are set out in Appendices H-K of the report.

18.  That funding for East Dulwich school crossing patrols (Townley Road and Village Way - 3 crossings in total) be amended to mainstream funding of £18,000 and that officers be instructed to conduct a “digital by default” review of member and democratic services with a target of saving at least £18,000 by reducing printing and distribution costs. Proposals should be based on a “bring your own device” model.

19.  That with regard to paragraph 98 of the report, a review of the voluntary redundancy offer being made to employees, the chief executive report back to the next cabinet.

20.  That a report comes back to cabinet on the suggestion set out paragraph 102 of the report, that council officers look into the possibility of introducing a staff bank approach for street cleaning rather than making use of agencies to supply staff.

NOTE: In accordance with overview and scrutiny procedure rule 23.1(a) (budget and policy framework) these decisions are not subject to call-in.