To consider the revised proposals of the Mayor and Executive in relation to the Council’s Budget and Council Tax 2015/16.

The first Budget Council Meeting on 25^th February 2015 did not agree the Mayor’s budget proposals.  The Council agreed an amendment moved by Councillor Rachael Saunders and seconded by Councillor Ayas Miah containing a number of proposed changes to the Mayor’s budget.  In accordance with the requirements of the Constitution and statutory provisions, the Mayor has been formally advised of the Council’s objections to his proposals and within a period of five working days must reconsider those proposals in accordance with the Council’s objections and submit his revised

budget proposals to the second Budget Council Meeting.  Those revised proposals may at the Mayor’s discretion include some or all elements of the amendment agreed by the Council at the first budget meeting. 

The attached report sets out the amendment agreed by the Council on 25^th February 2015.  The Mayor’s revised budget proposals will be circulated to Councillors as soon as they are available. 

Officer advice on the Mayor’s budget proposals and on each element of the agreed budget amendment has been received by Members in the agenda for the first Budget Council Meeting and papers tabled at that meeting.  Members are requested to bring those documents with them to this meeting.

Mayor Lutfur Rahman introduced, and Councillor Alibor Choudhury moved, the reconsidered budget proposals of the Mayor and Executive as set out in the tabled report. Councillor Oliur Rahman seconded the proposals. The Mayor stated that he and the Executive were unable to accept any part of the amendment proposed by Council on 25^th February 2015, with the reasons set out in the tabled report.

Councillor Rachael Saunders moved and Councillor Ayas Miah seconded the budget amendment as agreed at the Council meeting on 25^th February 2015 and as set out in the agenda.

Following debate a recorded vote was conducted on the amendment. The amendment did not achieve the necessary two-thirds majority of those present and voting as required by regulations, with 22 Members voting in favour, 18 against and 5 abstentions.  The Mayor and Executive’s budget proposals were therefore adopted.

DECISION

General Fund Revenue Budget and Council Tax Requirement 2015/16

1.         To agree a General Fund revenue budget of £291.362m and a total Council Tax Requirement for Tower Hamlets in 2015/16 of £69,814,540 as set out in the table below.

2.         To agree a Council Tax for Tower Hamlets in 2015/16 of £885.52 at Band D resulting in a Council Tax for all other band taxpayers, before any discounts, and excluding the GLA precept, as set out in the table below:-

The Mayor’s response to the budget amendment agreed by the Council at the Budget Meeting on 25^th February 2015 was tabled.

Mayor Lutfur Rahman introduced, and Councillor Alibor Choudhury moved, the reconsidered budget proposals of the Mayor and Executive as set out in the tabled report. Councillor Oliur Rahman seconded the proposals. The Mayor stated that he and the Executive were unable to accept any part of the amendment agreed by the Council on 25^th February 2015, with the reasons set out in the tabled report.

Councillor Rachael Saunders moved and Councillor Ayas Miah seconded the budget amendment as agreed at the meeting on 25^th February 2015 and as set out in the agenda.

Following debate a recorded vote was conducted on the amendment. The amendment did not achieve the necessary two-thirds majority of those present and voting as required by regulations, with 22 Members voting in favour, 18 against and 5 abstentions as set out below:-. 

The Mayor and Executive’s budget proposals were therefore adopted. Accordingly it was:-

RESOLVED

General Fund Revenue Budget and Council Tax Requirement 2015/16

1.         To agree a General Fund revenue budget of £291.362m and a total Council Tax Requirement for Tower Hamlets in 2015/16 of £69,814,540 as set out in the table below.

To consider the proposals of the Mayor and Executive for the Council’s Budget and Council tax 2015/16.  The report of the Mayor in Cabinet on 4^th February 2015 and Annexes setting out the budget proposals are attached.

Mayor Lutfur Rahman introduced, and Councillor Alibor Choudhury moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor Oliur Rahman seconded the proposals.

Two amendments were tabled and moved as follows:

(i)    Amendment proposed by Councillor Rachael Saunders and seconded by Councillor Ayas Miah

(ii)  Amendment proposed by Councillor Andrew Wood and seconded by Councillor Craig Aston

Following debate, the amendment proposed by Councillor Rachael Saunders was put to the vote and was agreed.

The amendment proposed by Councillor Andrew Wood was put to the vote and was defeated.

The substantive budget proposals as amended were then put to the vote and were defeated.

DECISIONS

(i)            That the budget proposals of the Mayor and Executive be not adopted;

(ii)          That the Mayor and Executive be informed of the Council’s objections to their budget proposals as set out in the amendment agreed by the Council as set out below; be requested to reconsider their proposals in the light of those objections; and in accordance with the Budget and Policy Framework Procedure Rules submit revised proposals for consideration at a further Budget Council Meeting to be held on 5^th March 2015.

This Council believes:

·         That Lutfur Rahman is failing the people of Tower Hamlets on the basics – he cannot keep the streets clean.  Bulk waste charges have increased fly-tipping and he has proposed to cut monitoring of clean streets this year.

·         Residents regularly complain that they are unable to report antisocial behaviour and noise nuisance out of hours, leaving their families suffering throughout the night.

·         That Lutfur Rahman claimed he would not cut front line services.  This budget contains multiple cuts to front line services to the most vulnerable. 

·         That these cuts include closing the council’s in house homecare service, which has been opposed by this Labour Group at repeated budget meetings, and which has already been implemented, with swingeing redundancies. 

·         Lutfur Rahman is failing on community safety, with a fall in the number of police officers being funded by the Council, adding insult to the injury of Tory cuts to the police.    Local people expect better, with concerns expressed to us about burglary and anti-social behaviour on the rise.  

·         That the Mayor must stop wasting public money on hopeless legal battles which are for his own personal benefit, with no thought for the needs of local people. 

·         That the Mayor’s attempt to close four public-run nurseries was shameful and typifies his failure to protect vital frontline services.

·         That we must tackle poverty.  Tower Hamlets has the highest child poverty in the UK.  It is the mission of the Labour Party that that must stop. 

·         That there is a great need in Tower Hamlets to bring people of different backgrounds together. That services to children are a great place to find common ground between parents and begin lifetime friendships for children. 

·         A Labour government elected in May 2015 would extend the hours of free childcare available for three and  ...  view the full decision text for item 5

Mayor Lutfur Rahman introduced, and Councillor Alibor Choudhury moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor Oliur Rahman seconded the proposals.

Two amendments were tabled and moved as follows:

(i)    Amendment proposed by Councillor Rachael Saunders and seconded by Councillor Ayas Miah.

(ii)  Amendment proposed by Councillor Andrew Wood and seconded by Councillor Craig Aston.

Following debate the amendment proposed by Rachael Saunders was put to the vote and was agreed.

Councillors recorded their votes on the amendment as follows:-

Following debate the amendment proposed by Andrew Wood was put to the vote and was defeated.

Councillors recorded their votes on the amendment as follows:-

The substantive budget proposals as amended were then put to the vote and were defeated.

Councillors recorded their votes on the amended budget as follows:-

The Mayor noted the updated papers circulated after the original agenda was published. The Mayor agreed an amendment proposed by Councillor Ohid Ahmed in relation to funding police officers and one to allow for any impact from the decision on the Multi-Faith Burial Ground report later on the agenda.

DECISION

1.    Agree a General Fund Revenue Budget of £291.270m and a Council tax (Band D) at £885.52 for 2015-2016 be referred to Full Council for consideration.

2.    Consider and comment on the following matters –

a.    Budget Consultation

The results of the feedback for the budget consultation are being collated but will not be completed prior to the publication of this report as the second roadshow has been scheduled for the 5th February 2015. The results will be presented at the Full Council Meeting in February.

b.    Funding

The funding available for 2015-2016 and the indications and forecasts for future years set out in Section 8.

c.    Base Budget 2015-2016

The Base Budget for 2015-2016 as £293.933m as detailed in Appendix 1.

d.    Growth and Inflation

The risks identified from potential inflation and committed growth arising in 2015-2016 and future years and as set out in Section 9 and in Appendix 3.

e.   General Fund Revenue Budget and Medium Term Financial Plan 2015-2016 to 2017-2018

The initial budget proposal and Council Tax for 2015-2016 together with the Medium Term Financial Plan set out in Appendix 1 and the budget reductions arising.

f.     Savings

Savings items to be included in the budget for 2015-2016 and the strategic approach for future savings to be delivered are set out in Section 10, Appendix 4.1 of the report.

g.    Capital Programme

The capital programme to 2017-2018; including proposed revisions to the current programme as set out in section 14 and detailed in Appendices 8.1, 8.2 & 8.3.

Adopt an increased capital estimate of £8.632m in respect of the Building Schools for the Future programme, bringing the total scheme budget to £328.333m (see paragraph 14.9 to 14.13 of the report). This will ensure that all specific BSF resources are fully included within the capital programme.

h.    Dedicated Schools Grant

The position with regard to Dedicated Schools Grant as set out in Section 12 and Appendices 6.1 & 6.2.

i.      Housing Revenue Account

The position with regard to the Housing Revenue Account as set out in Section 13 and Appendix 7.

j.     Financial Risks: Reserves and Contingencies

Advise on strategic budget risks and opportunities as set out in Section 11 and Appendices 5.1, 5.2 and 5.3.

k.   Reserves and Balances

The position in relation to reserves as set out in the report and further detailed in Appendices 5.1 and 5.3

l.      Mayor’s Priorities

Initiatives proposed by the Mayor are set out in Section 9.9 to 9.14.

3.    To adjust the budget proposals to allocate the savings made through the deletion of the Chief Executive’s Salary budget to provide funding for additional police officers.

4.    To agree to the above recommendations subject to any  ...  view the full decision text for item 10

Councillor Alibor Choudhury, Cabinet Member for Resources, introduced the report taking this report and Agenda Items 10.1 (Housing Revenue Account Budget Report 2015/16) and 10.2 (Treasury Management Strategy, Minimum Revenue Provision Policy Statement and Annual Investment Strategy 2015/16) together. The debate is presented in the minutes under Agenda Item 10.1.

Following the discussed listed earlier the Mayor agreed the recommendations as set out in the report subject to amendments relating to the proposal to fund additional police officers and any potential impact of the decisions taken in relation to Agenda Item 16.1 (Multi-Faith Burial Ground) later on the agenda.

RESOLVED

1.    To agree a General Fund Revenue Budget of £291.270m and a Council tax (Band D) at £885.52 for 2015-2016 be referred to Full Council for consideration.

2.    To consider and comment on the following matters –

a.    Budget Consultation

The results of the feedback for the budget consultation are being collated but will not be completed prior to the publication of this report as the second roadshow has been scheduled for the 5th February 2015. The results will be presented at the Full Council Meeting in February.

b.    Funding

The funding available for 2015-2016 and the indications and forecasts for future years set out in Section 8.

c.    Base Budget 2015-2016

The Base Budget for 2015-2016 as £293.933m as detailed in Appendix 1.

d.    Growth and Inflation

The risks identified from potential inflation and committed growth arising in 2015-2016 and future years and as set out in Section 9 and in Appendix 3.

e.   General Fund Revenue Budget and Medium Term Financial Plan 2015-2016 to 2017-2018

The initial budget proposal and Council Tax for 2015-2016 together with the Medium Term Financial Plan set out in Appendix 1 and the budget reductions arising.

f.     Savings

Savings items to be included in the budget for 2015-2016 and the strategic approach for future savings to be delivered are set out in Section 10, Appendix 4.1 of the report.

g.    Capital Programme

The capital programme to 2017-2018; including proposed revisions to the current programme as set out in section 14 and detailed in Appendices 8.1, 8.2 & 8.3.

Adopt an increased capital estimate of £8.632m in respect of the Building Schools for the Future programme, bringing the total scheme budget to £328.333m (see paragraph 14.9 to 14.13 of the report). This will ensure that all specific BSF resources are fully included within the capital programme.

h.    Dedicated Schools Grant

The position with regard to Dedicated Schools Grant as set out in Section 12 and Appendices 6.1 & 6.2.

i.      Housing Revenue Account

The position with regard to the Housing Revenue Account as set out in Section 13 and Appendix 7.

j.     Financial Risks: Reserves and Contingencies

Advise on strategic budget risks and opportunities as set out in Section 11 and Appendices 5.1, 5.2 and 5.3.

k.   Reserves and Balances

The position in relation to reserves as set out in the report and further detailed in Appendices 5.1 and 5.3

l.  ...  view the full minutes text for item 10

The Mayor agreed the reasons for urgency as set out in the report.

DECISION

1.    To agree a General Fund Revenue Budget of £290.569m together with the Outline Strategic Plan identifying the key priority activities which will be delivered within this budget and which will be further developed into the Council’s Strategic Plan for 2015-2016.

2.    To accept the Council Tax Freeze Grant available from the Department of Communities and Local Government for 2015-2016 and thereby agree to continue to freeze Council Tax (Band D) at £885.52 for the new financial year.

3.    To agree to propose the items listed below for public consultation and consideration by the Overview & Scrutiny Committee in accordance with the Budget and Policy Framework (Section 16). A further report will then be submitted to the next Cabinet meeting in February detailing the results of consultations and inviting the Cabinet to recommend a Budget Requirement and Council Tax for 2015-2016 to Full Council.

4.    To agree to conduct the Budget consultation in line with Section 16 in the body of the report.

5.    To consider and comment on the following matters –

a.    Budget Consultation

The approach to the budget consultation with the community and Overview and Scrutiny Committee.

b.    Funding

The funding available for 2015-2016 and the indications and forecasts for future years set out in Section 8.

c.    Base Budget 2015-2016

The Base Budget for 2015-2016 as £293.933m as detailed in Appendix 1.

d.    Growth and Inflation

The risks identified from potential inflation and committed growth arising in 2015-2016 and future years and as set out in Section 9 and in Appendix 3.

e.   General Fund Revenue Budget and Medium Term Financial Plan 2015-2016 to 2017-2018

The initial budget proposal and Council Tax for 2015-2016 together with the Medium Term Financial Plan set out in Appendix 1 and the budget reductions arising.

f.     Savings

Previously agreed and New savings items to be included in the budget for 2015-2016 and the strategic approach for future savings to be delivered are set out in Section 10, Appendix 4.1 and 4.2 of the report.

g.    Capital Programme

The capital programme to 2017-2018; including the proposed revisions to the current programme as set out in section 14 and detailed in Appendices 8.1, 8.2 & 8.3.

h.    Dedicated Schools Grant

The position with regard to Dedicated Schools Grant as set out in Section 12 and Appendices 6.1 & 6.2.

i.      Housing Revenue Account

The position with regard to the Housing Revenue Account as set out in Section 13 and Appendix 7.

j.     Financial Risks: Reserves and Contingencies

Advise on strategic budget risks and opportunities as set out in Section 11 and Appendices 5.1, 5.2 and 5.3.

k.   Reserves and Balances

The position in relation to reserves as set out in the report and further detailed in Appendices 5.1 and 5.3

l.      Mayor’s Priorities

Initiatives proposed by the Mayor are set out in Section 9.9 to 9.14.

Action by:

ACTING CORPORATE DIRECTOR, RESOURCES (C. HOLME)

SERVICE HEAD,  ...  view the full decision text for item 10

The Cabinet Member for Resources introduced this item as the same time as Agenda Item 10.3 (Fees and Charges 2014/15) and the full debate is listed under that item.

The Mayor agreed the reasons for urgency as set out in the report.

The report was not published with the main agenda and arguably there were not five clear days between publication and the meeting. The item was, however, properly forward-planned for this meeting and the report was available for public inspection from the day it was added to the agenda and made available to members. The report was not published earlier as it was necessary to consider the Government’s provisional 2015/16 Local Government Finance Settlement, which was announced by the Secretary of State on 18 December 2014. It is considered necessary for Cabinet to consider this report to ensure that the budget process goes ahead as planned an in time to have a budget in place for 2015/2016.

The Mayor agreed the recommendations as set out in the report.

RESOLVED

1.    To agree a General Fund Revenue Budget of £290.569m together with the Outline Strategic Plan identifying the key priority activities which will be delivered within this budget and which will be further developed into the Council’s Strategic Plan for 2015-2016.

2.    To accept the Council Tax Freeze Grant available from the Department of Communities and Local Government for 2015-2016 and thereby agree to continue to freeze Council Tax (Band D) at £885.52 for the new financial year.

3.    To agree to propose the items listed below for public consultation and consideration by the Overview & Scrutiny Committee in accordance with the Budget and Policy Framework (Section 16). A further report will then be submitted to the next Cabinet meeting in February detailing the results of consultations and inviting the Cabinet to recommend a Budget Requirement and Council Tax for 2015-2016 to Full Council.

4.    To agree to conduct the Budget consultation in line with Section 16 in the body of the report.

5.    To consider and comment on the following matters –

a.    Budget Consultation

The approach to the budget consultation with the community and Overview and Scrutiny Committee.

b.    Funding

The funding available for 2015-2016 and the indications and forecasts for future years set out in Section 8.

c.    Base Budget 2015-2016

The Base Budget for 2015-2016 as £293.933m as detailed in Appendix 1.

d.    Growth and Inflation

The risks identified from potential inflation and committed growth arising in 2015-2016 and future years and as set out in Section 9 and in Appendix 3.

e.   General Fund Revenue Budget and Medium Term Financial Plan 2015-2016 to 2017-2018

The initial budget proposal and Council Tax for 2015-2016 together with the Medium Term Financial Plan set out in Appendix 1 and the budget reductions arising.

f.     Savings

Previously agreed and New savings items to be included in the budget for 2015-2016 and the strategic approach for future savings to be delivered are set out in Section 10, Appendix 4.1  ...  view the full minutes text for item 10