To agree a draft budget for the financial year 2019/20 to be put forward to Council for consideration.

DECISION

1.    To propose a draft General Fund Revenue Funding Requirement of £342.560m subject to any changes arising from the Final Local Government Finance Settlement.

2.    To propose a Band D Council Tax of £1,019.67 for 2019-20 to be referred to Full Council for consideration.

3.    To confirm the Council’s decision to participate in the 75% London Business rates pilot for 2019-20 and note the deadline of the 10^th January 2019 for authorities wishing not to participate.

4.    To agree the draft 2019-20 Housing Revenue Budget as set out in Appendix 8A.

5.    To agree the draft 2019-20 Management Fee payable to Tower Hamlets Homes (THH) of £31.105m as set out in Table 6.

6.    To note that, under section 23 of the Welfare Reform and Work Act 2016 the authority must implement a rent reduction of 1% for four years, starting in April 2016, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2019. This equates to an average weekly rent reduction of £1.08.

7.    To agree that the average weekly tenanted service charge will be increased by 3.4% from the first rent week in April 2019. This equates to an average weekly increase in tenanted service charge of approximately £0.28.

8.    To note the following matters:

General Fund revenue Budget for 2019-20 and Medium Term Financial Strategy 2019-20 to 2021-22

The initial budget proposals and Council Tax for 2019-20 together with the Medium Term Financial Strategy set out in Appendix 1A to the report.

Budget Consultation

The outcome of consultation with business ratepayers, residents and other stakeholders as set out in Section 3.13 of the report and Appendix 10 to the report.

Funding

The funding available for 2019-20 and the indications and forecasts for future years as set out in Section 3.4 of the report.

Growth and Inflation

The risks identified from the potential growth and inflation commitments arising in 2019-20 and future years as set out in Section 3.5 of the report and Appendix 3 to the report.

Savings

New proposed saving items to be delivered in 2019-22 as set out in Section 3.6 of the report and Appendix 4 to the report.

Financial Risks: Reserves and Contingencies

The strategic budget risks and opportunities as set out in Section 3.7 of the report and the assessment of risk as detailed in Appendix 6 to the report.

Reserves and Balances

The reserves policy and proposed approach to the strategic use of reserves as set out in Section 3.8 of the report and the projected movement in Reserves as detailed Appendix 5 and 7 to the report.

Schools Funding

The position for schools’ funding including the Dedicated Schools Grant as set out in Section 3.9 of the report.

Housing Revenue Account

The position of the Housing Revenue Account; proposals for Rent and Tenanted Service Charge Setting 2019-20 and Equalities impact assessment set out in Section 3.10 of the report and Appendix 8 to the report. 

Capital Programme

The Capital Programme to 2018-29; including proposed revisions to the current programme as set out in Section 3.11 of the report and detailed in Appendix 9 to the report.

9.    To note the Equalities Impact Assessment / specific equalities considerations as set out in Section 4 of the report.

Action by:

ACTING CORPORATE DIRECTOR, RESOURCES (N. MURTON)

(Interim Divisional Director, Finance, Procurement and Audit (D. Lawrenson)