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

The report of the Overview and Scrutiny Committee was noted.

DECISION

1.    To agree a General Fund Revenue Budget of £342.560m subject to any changes arising from the Final Local Government Finance Settlement to be referred to Full Council for consideration.

2.    To agree the Council Tax (Band D) at £1,019.67 for 2019-20 to be referred to Full Council for consideration.

3.    To authorise the Corporate Director, Resources after consultation with the Mayor and Lead Member of Resources to make any changes required to the budget following the final settlement announcement in February.

4.    To approve the revised Capital Programme for the period to 2028-29; as detailed in Appendix 9A-D to the report and adopt the associated capital estimates

5.    To approve the draft 2019-20 Housing Revenue Budget as set out in Appendix 8A to the report.

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

7.    To note that under the Management Agreement between the Council and THH, THH manages delegated income and expenditure budgets on behalf of the Council.  In 2019-20, THH will manage delegated income budgets totaling £86.875m and delegated expenditure budgets of £27.719m.

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 proposal and Council Tax for 2019-20 together with the Medium Term Financial Strategy set out in Appendix 1A.

Note the decision made by the Mayor in Cabinet to participate in the London Wide 75% Business Rates Retention pilot scheme.

Note the decision of the Mayor in Cabinet in January 2018 to increase the Council Tax empty homes premium from 50% to 100%, which comes into effect from the 1^st April 2019. This follows the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 which allows Councils to increase the current maximum empty homes premium set at 50%, to 100% from 1^st April 2019. 

Budget Consultation

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

Funding

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

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 and Appendix 3.

Savings

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

Financial Risks: Reserves and Contingencies

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

Reserves and Balances

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

Schools Funding

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

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 and Appendix 8

Capital Programme

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

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)