(See pages 16 - 150 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 on the report, the written responses to which were circulated on blue paper at the meeting. There were two supplemental questions.
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 Catherine Rose, seconded by Councillor Evelyn Akoto, moved Amendment A.
Councillor Michael Mitchell, seconded by Councillor Jane Lyons, moved Amendment B.
Councillor Rosie Shimell, seconded by Councillor Ben Johnson, moved Amendment C.
Councillor Anood Al-Samerai, seconded by Councillor James Okosun, moved Amendment D.
Following debate (Councillors Mark Williams, Richard Livingstone, Vicky Mills, Damian O'Brien, Johnson Situ, Karl Eastham, Dan Whitehead, Kieron Williams, Gavin Edwards, Maria Linforth-Hall, Ian Wingfield, Bill Williams, David Noakes, Jasmine Ali, Andy Simmons, Adele Morris, Barrie Hargrove, Eleanor Kerslake, Peter John, Rebecca Lury, Paul Fleming, David Hubber, Stephanie Cryan, Sunny Lambe, James Hartley, Nick Dolezal, Tom Flynn, Charlie Smith), Councillor Fiona Colley exercised her right of reply.
Amendment A was put to the vote and declared to be carried
Amendment B was put to the vote and declared to be lost
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 (45):
Councillors Evelyn Akoto, Jasmine Ali, Radha Burgess, Sunil Chopra, James Coldwell, Fiona Colley, Stephanie Cryan, Catherine Dale, Dora Dixon-Fyle, Nick Dolezal, Karl Eastham, Gavin Edwards, Paul Fleming, Tom Flynn, Renata Hamvas, Barrie Hargrove, Jon Hartley, Peter John, Samantha Jury-Dada, Eleanor Kerslake, Sarah King, Anne Kirby, Octavia Lamb, Sunny Lambe, Lorraine Lauder, Richard Livingstone, Rebecca Lury, Vijay Luthra, Darren Merrill, Victoria Mills, Jamille Mohammed, Leo Pollak, Sandra Rhule, Catherine Rose, 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 (14):
Councillors Anood Al-Samerai, James Barber, David Hubber, Ben Johnson, Maria Linforth-Hall, Jane Lyons, Hamish McCallum, Michael Mitchell, Adele Morris, David Noakes, Damian O’Brien, James Okosun, Rosie Shimell and Dan Whitehead.
Absent (4)
Councillors Maisie Anderson, Helen Dennis, Lucas Green and Eliza Mann.
The Mayor declared that the substantive motion was carried.
RESOLVED:
That council assembly:
1. Agreed to increase the Southwark element of the council tax for 2017-18 by 1.99%.
2. Agreed to use the flexibility offered by the government to support Adult Social Care through a precept equivalent to 3% of council tax on the basis that these additional funds will be used exclusively for adult social care.
3. Agreed the recommendations of the 7 February 2017 cabinet for a general fund budget requirement (after specific grants and use of reserves) for 2017-18 of £274.3m.
School funding
4. Council assembly welcomed the contribution from Schools Forum from the Dedicated Schools Grant to fund the shortfall in Education Support Grant (ESG) services in 2017/18, but notes its concern about the ending of ESG, which funds the important work that the council’s school improvement team undertakes working with local schools.
5. Council assembly noted that this change comes alongside a proposed new national funding formula, which will have a damaging and disproportionate impact on schools in Southwark by reducing funding by 2.7%, alongside existing additional budget pressures.
6. Council assembly believed that at a time when some schools in Southwark could be losing £1,000 per pupil in funding, it is more important than ever that the council is able to continue supporting schools to improve opportunities for Southwark children.
7. Council assembly called on the cabinet to work with schools in Southwark to protect school improvement, continue to encourage school-to-school support and increase collaboration within the Southwark family of schools.
8. Council assembly also called on councillors to support the Southwark campaign for fair funding, and to work with schools, parents and other London boroughs to campaign against cuts to funding for London schools.
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.
The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept this item as urgent because the council were committed to publishing budget proposals at the earliest possible opportunity to ensure they are available to the public for comments and questions. Presenting this report to cabinet on 24 January 2017 gives the opportunity for debate prior to presentation of final budget figures to cabinet on 7 February 2017. 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 30 January 2017.
RESOLVED:
2. That it be noted that the key elements for the council arising from the provisional settlement included:
· Settlement Funding Assessment (SFA), updated to include the confirmed Revenue Support Grant (£57.79m) and Business Rate Baseline Funding levels (£108.21m)
· Confirmed new homes bonus for 2017-18 of £13.053m representing an overall reduction of £2.0m on 2016-17 budgeted funding levels (paragraph 43 of the report )
· Powers to bring forward the timing of the adult social care precept (paragraph 53 of the report)
· A one year only Adult Social Care grant of £1.577m for 2017-18 (paragraph 47 of the report), funded by the government through a further reduction in new homes bonus
· Confirmed improved better care fund in 2017-18 of £1.658m m payable directly to the council and indications of increased funding in 2018-19 and 2019-20 (paragraph 51 of the report)
· Confirmed Public Health Grant for 2017-18 of £28.194m which is a reduction of £0.69m from 2016-17.
3. That the risk transfer of retained business rate funding to local authorities (paragraph 39 of the report) be noted.
4. That the impact on school funding grants, specifically the cessation of the Education Support Grant (paragraph 69 of the report) be noted.
5. That the continued uncertainties especially regarding adult social care and children’s services cost and demand pressures for 2017-18 and beyond and also ongoing funding risks and uncertainties relating particularly to the new Adult Social Care Grant, New Homes Bonus, Public Health Grant and risks of retained Business Rates, be noted.
6. That the current budget deficit for 2017-18 of £1.822m, reduced from £2.6m on 13 December 2016, and £8.1m presented on 1 November 2016, after the incorporation of a number of budget proposals and updated information following the provisional settlement, be noted.
7. That it be noted that the general fund budget proposals for 2017-18 contained within the report include:
· grant resources arising from the provisional settlement on 15 December (Appendix A of the report)
· Estimated resources for the Autumn Statement Grant
· An assumed increase in Council Tax of 1.99%, below the cap of 2% laid down by the Department for Communities and Local Government (DCLG);
· An assumed increase in the Adult Social Care (ASC) precept of 3%, in line with the maximum laid down by DCLG
· Estimated council tax revenue of £87.5m in line with the Council Tax Base report agreed by cabinet in December (paragraph 58 of the report)
· Estimated retained business rates growth of £8.7m
· Planned use of balances of £3.7m, subject to reserves and balances being available
· Planned contingency of £4m (paragraph 87 of the report)
· Provision for contractual inflation and 1% pay award
· Proposals for budget changes in 2017-18:
o new commitments £22.916m, of which £5.9m is ASC earmarking of precept and grant (Appendix C of the report)
o efficiencies and improved use of resources of £18.247m (Appendix D of the report)
o income generation proposals of £2.482m (Appendix E of the report)
o other savings impacting on service delivery of £4.981m (Appendix F of the report).
8. That it be noted that the assumed increase in the Southwark element of the council tax represents the first increase in eight years (paragraph 58 of the report) and it is estimated that Southwark will continue to have the seventh lowest council tax in London.
9. That it be noted that this budget proposes to use the flexibility offered by the government to support social care through an increase in the Adult Social Care precept, equivalent to 3% of council tax, on the basis that these additional funds will be used exclusively for adult social care (paragraph 54 of the report).
10. That the current budget options proposed to help achieve a balanced budget 2017-18 as presented in appendices B-D of the report, including ongoing protection for children’s social care budgets, be noted.
11. That the departmental narratives setting out the service context and commitments, savings and income generation proposals (Appendix B of the report) be noted.
12. That the proposed approach to address the children’s and adults’ social care budget pressures, and comparative data (Appendix G of the report), be noted.
13. That the reducing level of reserves and balances available to the council to help mitigate the risks of funding reductions moving into future financial years (paragraph 84 of the report) be noted.
14. That the continuing work underway by strategic directors to complete appropriate equality assessments for all budget proposals (reference in Appendix B of the report) be noted.
15. That it be noted that the consultation that took place prior to agreeing the indicative budget options for 2017-18 and 2018-19 in February 2016 and that further consultation will be undertaken for new budget options where necessary or appropriate.
16. That it be noted that this report will be considered by overview and scrutiny committee on 30 January 2017 and that any recommendations arising will be incorporated into the final report to cabinet on 7 February 2017.
17. That officers complete further work in the light of further notifications from government and recommendations from cabinet and overview and scrutiny to present a fully balanced budget position for cabinet on 7 February 2017.
18. That it be noted that on the basis of this range of uncertainties and as reported to cabinet previously, a balanced one year 2017-18 budget will be presented to cabinet in February for approval in advance of council assembly in February 2017.