Agenda item

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.

(See pages 1 – 76 of the main agenda)

 

The Mayor informed the meeting that the Greater London Authority (GLA) had met earlier in the week and agreed the precept for Southwark, therefore the proposed GLA precept outlined in the report was correct.

 

There were two questions from members, the answers to which had been circulated on blue paper at the meeting.  Two supplemental questions were asked of the cabinet member for finance, modernisation and performance.  The questions and written responses are attached as Appendix 1 to the minutes.

 

The Mayor reminded everyone that the meeting had earlier agreed that there would be a single debate on the report and Amendments A, B, C and D.

 

In accordance with council assembly procedure rule 1.14.9, Councillor Fiona Colley, cabinet member for finance, modernisation and performance, moved the report.

 

In accordance with council assembly procedure rule 1.14.9, Councillor Hamish McCallum, the shadow cabinet member for finance, responded to the cabinet member’s statement.

 

Councillor Michael Mitchell, seconded by Councillor Jane Lyons, moved Amendment A.

 

Councillor Victoria Mills seconded by Councillor Darren Merrill, moved Amendment B.

 

Councillor Anood Al-Samerai moved Amendment C; after which Councillor Victoria Mills made a point of personal explanation.  Councillor James Okosun then seconded Amendment C.

 

Councillor Rosie Shimell, seconded by Councillor James Barber, moved Amendment D.

 

Following debate (Councillors Stephanie Cryan, Maria Linforth-Hall, Mark Williams, Karl Eastham, Eliza Mann, Michael Situ, Nick Dolezal, Adele Morris, Jasmine Ali, Barry Hargrove, Damian O’Brien, Richard Livingstone, Andy Simmons, David Noakes, Peter John, Tom Flynn, David Hubber, Johnson Situ, Paul Fleming, Gavin Edwards, Kieron Williams, Lisa Rajan, Sunil Chopra, Cleo Soanes, John Hartley, Ben Johnson, Charlie Smith and Ian Wingfield), Councillor Fiona Colley exercised her right of reply.

 

Amendment A was put to the vote and declared to be lost.

 

Amendment B was put to the vote and declared to be carried.

 

Amendment C was put to the vote and declared to be lost.

 

Amendment D was put to the vote and declared to be lost.

 

At this juncture the clerk explained that the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, which had come into force on 25 February 2014, required a recorded vote on key budget decisions by local authorities. The regulations required a recorded vote on decisions only.  Therefore in accordance with council assembly procedure rule 1.16(4) (a roll call recorded vote), the bell was rung at the beginning and end of one minute, after which the doors to the room were closed.

 

The substantive motion was put to the vote, and the votes having been recorded, the Mayor declared the result as follows:

 

In favour of the substantive motion (46):

 

Councillors Evelyn Akoto, Jasmine Ali, Maisie Anderson, Radha Burgess, Sunil Chopra, Fiona Colley, Stephanie Cryan, Catherine Dale, Helen Dennis, Dora Dixon-Fyle, Nick Dolezal, Karl Eastham, Gavin Edwards, Paul Fleming, Tom Flynn, Lucas Green, Renata Hamvas, Barrie Hargrove, Jon Hartley, Helen Hayes, Peter John, Samantha Jury-Dada, Eleanor Kerslake, Sarah King, Anne Kirby, Sunny Lambe, Octavia Lamb, Lorraine Lauder, Richard Livingstone, Rebecca Lury, Darren Merrill, Victoria Mills, Jamille Mohammed, Leo Pollak, Sandra Rhule, Martin Seaton, Andy Simmons, Johnson Situ, Michael Situ, Charlie Smith Cleo Soanes, Kath Whittam, Bill Williams, Kieron Williams, Mark Williams and Ian Wingfield.

 

Against the substantive motion (15):

 

Councillors Anood Al-Samerai, James Barber, David Hubber, Ben Johnson, Maria Linforth-Hall, Jane Lyons, Eliza Mann, Hamish McCallum, Michael Mitchell, Adele Morris, David Noakes, Damian O’Brien, James Okosun, Lisa Rajan and Rosie Shimell.

 

Absent (2)

 

Councillors Neil Coyle and Vijay Luthra.

 

The Mayor declared that the substantive motion was carried.

 

RESOLVED:

 

1.  That council assembly:

 

1)  Agrees to freeze the Southwark element of the council tax for 2016/17.

 

2)  Agrees to use the flexibility offered by the government to support Adult Social Care through a precept equivalent to 2% of council tax on the basis that these additional funds will be used exclusively for adult social care (ASC).

 

3)  Agrees the recommendations of the 9 February 2016 cabinet as amended for a general fund budget requirement (after use of reserves) for 2016/17 of £271.4m.

 

4)  Notes the indicative budgets for 2017/18 and 2018/19 included within this report and the associated funding shortfall that will need to be updated and addressed as part of the council tax setting process for those years.

 

2.  That council assembly:

 

1)  Believes that we must spend every penny as if it were our own, and recognises that efficiency and modernisation is at the heart of the council plan.

 

2)  Notes that the combination of the significant regeneration of the borough and the high performance of our award-winning revenue collection team is resulting in ever increasing levels of retained business rates, and that the s151 officer’s estimate of retained business rates in 2016/17 has recently risen from £4m to £4.6m.

 

3)  Notes the council’s commitment to making Southwark a place residents can be proud of, and recognises the importance of getting the basics right and keeping the streets clean in order to fulfil this commitment.

 

4)  Recognises the excellent work undertaken by the voluntary sector in Southwark with our young people, helping them to access the many opportunities being created by our Fairer Future Promises.

 

3.  That council assembly therefore resolves:

 

1)  To amend the budget for 2016/17 by bringing forward by one year savings in staff catering (reference 79) and Tooley Street office running costs (reference 81) of £90k and £70k respectively.

 

2)  To amend estimated business rates retained in the 2017/18 and 2018/19 indicative budgets to £7.1m.

 

3)  To delete proposed savings to mechanical sweeping overnight (reference 48) and overnight flytip clearance (reference 51).

 

4)  To increase the proposed youth and play budget by £1m by continuing to fund voluntary sector youth and play grants (reference 17) in 2017/18 and 2018/19, meaning no cuts to grant funding for young people in Southwark.

 

Amended schedules in Appendices B, C & D(see pages 35, 42 and 49 of the main agenda)

 

Division	Ref	Description	2016/ 17     £’000	2017/ 18     £’000	2018/ 19     £’000	2016/ 17 to 2018/ 19 £’000
Education	17	End of Voluntary Sector grants, subject to a new operating model for youth and play and a wider review of voluntary sector provision.		(500) 0		(500) 0
Waste and Cleansing	48	Cease the use of mechanical sweeping overnight and measure the impact on street cleanliness	(26) 0			(26) 0
Waste and Cleansing	51	End overnight fly tip clearance provision and move to stricter enforcement regime	(134) 0			(134) 0
Modernisation (CFM)	79	Reconfigure staff catering arrangements	(90) (180)	(125) (35)		(215)
Modernisation (CFM)	81	Review of operational opening times and workspace charges for 160 Tooley Street	0 (70)	(70) 0		(70)

 

 

Amended 2016/17 to 2018/19 Budget(See Table 1, pages 3 – 4 of the main agenda)

 

	2015/16		2016/17	2017/18		2018/19
	£m		£m	£m		£m
Resources
Retained business rates (DCLG)	(60.2)		(60.7)	(61.9)		(63.7)
Business rates top-up (DCLG)	(45.0)		(45.3)	(46.2)		(47.6)
Revenue support grant and other grants (inc Public Health and other specific grants) [See note 1]	(118.9)		(106.6)	(90.1)		(78.6)
Total funding (inc Public Health and other specific grants)	(224.1)		(212.6)	(198.2)		(189.9)
Council tax and Retained Business Rates
Council tax baseline	(80.0)		(83.2)	(84.5)		(85.6)
ASC Precept	-		(1.7)	(3.4)		(5.2)
Estimated increase in business rates retained	(5.0)		(4.6)	(7.1)		(7.1)
Collection fund surplus	(2.9)		(2.4)	(0.5)		(0.5)
Total revenue from council tax and business rates	(87.9)		(91.9)	(95.5)		(98.4)
Total funding	(312.0)		(304.5)	(293.7)		(288.3)
2015/16 budget starting point (includes Public Health expenditure)		334.6	318.2	310.7	299.8
Employees (1.2%, 1.0%, 1.0%,1.0%)		2.1	2.2	1.7	1.7
Contractual inflation		2.3	2.8	1.5	1.5
Commitments		4.7	13.3	7.8	6.2
Grants
New Homes Bonus		1.4	(6.3)	3.5	3.5
Changes in grant related expenditure		3.6	5.4	0.0	0.0
HB admin subsidy and council tax support		0.4	0.7	0.6	0.6
Net change in council tax freeze grant		(0.9)	0.9	0.0	0.0
Net budget before proposals		348.2	337.2	325.8	313.3
Proposals
Efficiencies and improved use of resources		(26.1)	(14.1)	(18.5)	(9.1)
Income generation		(2.9)	(10.0)	(6.0)	(5.0)
Savings impacting on service delivery		(1.0)	(2.4)	(1.5)	(1.6)
Total Budget		318.2	310.7	299.8	297.6
Planned contribution from balances		(6.2)	(6.2)	(5.0)	(4.0)
Net budget after contribution from balances		312.0	304.5	294.8	293.6
Funding shortfall / (surplus)		0.0	0.0	1.1	5.3

 

Note 1: includes £33.1m of specific grants in 2016/17.

 

Note:  The cabinet recommendation had been amended, therefore in accordance with the budget and policy framework procedure rule 2 (g), the leader gave his consent to the amendment and the decision was implementable with immediate effect.