Agenda item

To note issues associated with the policy and resources strategy and agree recommendations.

It was not possible to circulate this report five clear days in advance of the meeting. The chair agreed to accept this item as urgent as the council were committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions. Under the council’s constitution, there is a requirement for the overview and scrutiny committee to review and challenge budget proposals and this is due to take place on 27 January 2021.

RESOLVED:

1.  That the provisional local government finance settlement published on 17 December 2020 (paragraphs 30 – 42 of the report) be noted.

2.  That it be noted that, as reported to cabinet on 17 December 2020 and recognising the continued uncertainty for local government funding, the intention remains for the council to prepare a balanced one-year 2021-22 budget for approval by cabinet in advance of council assembly on 24 February 2021.

3.  That the current budget options proposed to help achieve a balanced budget 2021-22 be noted (Appendices B to E of the report).

4.  That the proposed increase in the adult social care precept in 2021-22 of 3% in line with the government flexibility be noted.

5.  That it be noted that, in recognition of the spending pressures in services, particularly those that protect and support vulnerable people, the proposed increase of 1.99% to the Southwark element of the council tax, is in line with the government threshold.

6.  That it be noted that the budget proposals for 2021-22 contained within the report include:

·  Estimated general grant resources of £152.519m, an increase of £0.202m from 2020-21

·  Hew homes bonus grant of £8.201m, a reduction of £6.157m from 2020-21

·  Social care grant of £13.199m, an increased of £3.184m from 2020-21

·  Estimated retained business rates growth of £18.961m, a decrease of £5.778m over 2020-21

·  Estimated council tax revenue of £123.024m, including £3.515m from the adult social care precept and £2.332m from the 1.99% council tax increase

·  A net contribution to the brought forward deficit on the collection fund chargeable to the 2021-22 budget of £1.505m

·  Provision for an increase in the pay bill and contractual inflation of £4.200m (excluding social care)

·  Retention of the contingency budget in the sum of £4m to mitigate underlying budget risks.

·  A one-off contribution from the adult social care resilience reserve to mitigate underlying budget risks in the service of £0.8m

·  A contribution from reserves of £5.0m.

7.  That the current budget options to help achieve a balanced 2021-22 budget be noted that include:

·  Efficiency savings of £12.045m (Appendix B of the report)

·  Other savings impacting on services of £2.741m (Appendix D of the report).

8.  That it be noted, in order to ensure that the base budget is on a secure financial footing a number of commitments are proposed for 2021-22 totalling £16.757m (Appendix E of the report) and a net reduction in income generation target of £0.446m (Appendix C of the report).

9.  That it be noted that the current budget proposed for 2021-22 is balanced after the incorporation of updated proposals, a 4.99% council tax increase and a contribution from reserves of £5.0m.

10.  That the forecast public health grant of £27.466m and net savings of £0.684m (Appendix F of the report) be noted.

11.  That the dedicated schools allocation of £352.5m and the continued deficit on high needs provision (paragraphs 63-65 of the report) be noted.

12.  That it be noted that the planned London Counter Fraud Hub will not now proceed and therefore the contribution of £1m has been released back to the Devolution reserve.

13.  That the the allocation of £0.250m from the London Devolution Reserve for anti-fraud activity be approved.

14.  That the allocation of £0.5m from the London Devolution Reserve to ensure food poverty in Southwark is tackled be approved.

15.  That the allocation of £0.3m from the London Devolution Reserve for Southwark Stands Together project costs be approved.

16.  That the allocation of £0.1m from the London Devolution Reserve for the Community Hub Covid-19 support to ensure the voluntary sector is supported be approved.

17.  That it be noted due to the significant financial risk, the London Business Rates Pool is unlikely to continue in 2021-22 (paragraph 86 of the report).

18.  That the fees and charges as set out in Appendix G (paragraphs 110 – 112 of the report) be approved.

19.  That the departmental narratives (Appendix A pf the report) and the equality analyses provided for the budget proposals be noted.

20.  That it be noted that overview and scrutiny committee will consider this report on 25 January 2021 and that any recommendations arising will be incorporated into the final report to cabinet on 2 February 2021 for recommendation to council assembly on 24 February 2021.

21.  That it be note the Greater London Authority (GLA) precept is unlikely to be approved until 25 February 2021 necessitating the establishment of a council tax setting committee to formally set the 2021-22 council tax.