To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax 2016/17.

Mayor John Biggs moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor Sirajul  Islam seconded the proposals.

Two amendments were moved as follows:

(i)    Amendment proposed by Councillor Oliur Rahman and seconded by Councillor Rabina Khan.

(ii)  Amendment proposed by Councillor  Chris Chapman and seconded by Councillor Andrew Wood

Following debate, the amendment proposed by Councillor Rahman was put to a recorded vote and was defeated.

The amendment proposed by Councillor Chapman was put to a recorded vote and was defeated.

The substantive budget proposals were then put to a recorded vote and were agreed.

DECISIONS

That Council: -

General Fund Revenue Budget and Council Tax Requirement 2016-17

1.    Agree a General Fund revenue budget of £361.985m and a total Council Tax Requirement for Tower Hamlets in 2016-17 of £76.884m as set out in the table below.

2.            Agree a Council Tax for Tower Hamlets in 2016-17 of £920.85 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:-

This incorporates a 1.99% general increase on  ...  view the full decision text for item 5

Mayor John Biggs moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor Sirajul Islam seconded the proposals.

Two amendments were moved as follows:

(i)    Amendment proposed by Councillor Oliur Rahman and seconded by Councillor Rabina Khan.

(ii)  Amendment proposed by Councillor  Chris Chapman and seconded by Councillor Andrew Wood

Following debate, the amendment proposed by Councillor Rahman was put to a recorded vote and was defeated.

Councillors recorded their votes on the amendment as follows:-

The amendment proposed by Councillor Chapman was put to a recorded vote and was defeated.

Councillors recorded their votes on the amendment as follows:-

Extension of time limit for the meeting

The Speaker of the Council, Councillor M. A. Mukitmoved, and Councillor Rachael Saunders seconded, a procedural motion, that “under Procedure Rule 15.11.7 the meeting be extended for 10 minutes, to complete the voting on the Budget and Council Tax 2016/17. The procedural motion was put to the vote and was agreed.

The substantive budget proposals were then put to a recorded vote and were agreed.

Councillors recorded their votes on the budget proposals as  ...  view the full minutes text for item 5

DECISION

1.    To submit to Council for agreement a General Fund Revenue Budget of £358.313msubject to any changes that may be required following the final settlement in February 2016.

2.    To agree the  Council tax (Band D) at £920.85 for 2016-17 be referred to Full Council for consideration.

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

4.    To consider the following matters:

Budget Consultation

The outcome of consultation with residents and the Overview and Scrutiny Committee on the budget and savings proposals as detailed in section 3.12 and Appendix 9 and 10.

Funding

The funding available for 2016-17 and the indications and forecasts for future years set out in Section 3.4.

Base Budget 2016-17

The Base Budget for 2016-17 as £350.346m as detailed in Appendix 1.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2016-17 and future years and as set out in Section 3.5 and in Appendix 3.

General Fund Revenue Budget for 2016-17 and Medium Term Financial Plan 2016-17to 2019-20

The initial budget proposal and Council Tax for 2016-17 together with the Medium Term Financial Plan set out in Appendix 1.

Savings

New savings items to be included in the budget for 2016-17 and the strategic approach for future savings to be delivered are set out in Section 3.6, Appendix 4.1 and 4.2 of the report.

Capital Programme

The capital programme to 2018-19; including the proposed revisions to the current programme as set out in section 3.10 and detailed in Appendices 8.1, 8.2 & 8.3, and the proposed refresh of the council’s capital strategy during 2016-17.

To adopt a capital estimate for Communities, Localities & Culture TFL LIP schemes (2016-17) totalling £2.487m & S106 schemes totalling £0.276m as detailed in Appendices 8.1 & 8.2.

Dedicated Schools Grant

The position with regards to the Dedicated Schools Grant as set out in Section 3.8 and Appendices 6.1 & 6.2.

Housing Revenue Account

The position with regards to the Housing Revenue Account as set out in Section 3.9 and Appendix 7.

Financial Risks: Reserves and Contingencies

The strategic budget risks and opportunities as set out in Section 3.7 and Appendix 5.2.

Reserves and Balances

New schemes being funded from general fund reserves in 2016-17.

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

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Interim Service Head, Finance and Procurement (B. Scarr)

(Head of Financial Planning & Corporate Finance Partner (E. Hussain)

(Deputy Financial Planning Manager (R. Ebaretonbofa-Morah)

Councillor David Edgar, Cabinet Member for Resources, introduced the report proposing the Council’s revenue and capital budget. In particular he drew Members attention to the changes to the report agreed at the January Cabinet meeting around Idea Store opening times, corporate match funding and the review of day services for older people. These were all now set out in the report. He was not proposing any other significant amendments.

The Mayor and Cabinet then discussed the report in more detail and in particular looked at the comments made by the Overview and Scrutiny Committee set out in an Appendix to the report. Particular topics discussed included:

·         The incontinence laundry service.

·         Spending on police officers.

·         School crossing services

·         Mainstream grants spending

·         The Burial subsidy

The Mayor agreed the recommendations as set out to present the budget to Council for agreement.

RESOLVED

1.    To submit to Council for agreement a General Fund Revenue Budget of £358.313msubject to any changes that may be required following the final settlement in February 2016.

2.    To agree the  Council tax (Band D) at £920.85 for 2016-17 be referred to Full Council for consideration.

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

4.    To consider the following matters:

Budget Consultation

The outcome of consultation with residents and the Overview and Scrutiny Committee on the budget and savings proposals as detailed in section 3.12 and Appendix 9 and 10.

Funding

The funding available for 2016-17 and the indications and forecasts for future years set out in Section 3.4.

Base Budget 2016-17

The Base Budget for 2016-17 as £350.346m as detailed in Appendix 1.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2016-17 and future years and as set out in Section 3.5 and in Appendix 3.

General Fund Revenue Budget for 2016-17 and Medium Term Financial Plan 2016-17to 2019-20

The initial budget proposal and Council Tax for 2016-17 together with the Medium Term Financial Plan set out in Appendix 1.

Savings

New savings items to be included in the budget for 2016-17 and the strategic approach for future savings to be delivered are set out in Section 3.6, Appendix 4.1 and 4.2 of the report.

Capital Programme

The capital programme to 2018-19; including the proposed revisions to the current programme as set out in section 3.10 and detailed in Appendices 8.1, 8.2 & 8.3, and the proposed refresh of the council’s capital strategy during 2016-17.

To adopt a capital estimate for Communities, Localities & Culture TFL LIP schemes (2016-17) totalling £2.487m & S106 schemes totalling £0.276m as detailed in Appendices 8.1 & 8.2.

Dedicated Schools Grant

The position with regards to the Dedicated Schools Grant as set out in Section 3.8 and Appendices 6.1 & 6.2.

Housing Revenue Account

The position with regards to the Housing Revenue Account as set out in Section 3.9 and  ...  view the full minutes text for item 5

The Budget 2016/17 Document Pack has been circulated separately.

In addition, the responses to Overview and Scrutiny queries on the Budget from the 2nd November, 2015 will be published and made available prior to the meeting.

Councillor David Edgar, Cabinet Member for Resources, introduced the report setting out the position regarding the Local Government Finance Settlement, Council Tax, New Homes Bonus and Capital.  He highlighted a number of the growth and savings proposals contained in the report. The main points of the full and wide ranging discussion on the Budget may be summarised as follows.

Review of Day Services for Older People - The Committee noted that the proposed redesign will focus primarily on service improvement and better outcomes for service users, whilst also achieving cost efficiency and value for money.  It was also noted that the proposal included better provision for service users of Mayfield House (which it was noted had 30 places and average daily attendance of 4) by moving these services to more modern facilities in consultation with service users.

RECOMMENDATION: The Committee agreed that it wanted more details on this proposal and Adults Services undertook to outline how the new service will continue to meet the needs of users prior to implementation.  

New funding arrangements for new Belvedere House – The Committee noted that Veterans' Aid will be securing alternative funding to ensure that they can continue to provide services for their vulnerable clients with no impact.

RECOMMENDATION: The Committee agreed that it wanted the budget papers to include the source of this new funding stream.

Undergraduate and Postgraduate Certificate in Education (PGCE) Bursaries – The Committee noted that over the last 12 years 153 local people have benefited from the bursary, 71% of whom have been black and minority ethnic (BME) and 74% women. This bursary, alongside other initiatives, has helped to increase the proportion of BME teachers in the borough to 30% (November, 2010) and in particular teachers of Bangladeshi heritage (12%).

RECOMMENDATION: The Committee agreed that it wanted the Mayor reconsider this savings proposal, and ensure that this bursary is more widely publicised and developed so that there can be increased take up from a broader cross section of BME communities.

Discontinue the Incontinence Laundry Service – The Committee received a question submitted byPete Dickenson regarding the impact of ending this service. 

The Committee noted that this is a non-statutory service and that the NHS provides free support to residents based on need. Residents that currently receive the service within the borough now also have direct control of their personal care budgets, which enables them to determine the nature of their care support for themselves.  Therefore, given that this is a health function and not a statutory requirement of the council and in view of the existence of the above NHS arrangements the discontinuance of the laundry service could be adequately managed as part of the NHS client needs assessment process, and agreed with the savings proposal.

Review of Enforcement Function – More Generic Working – Regarding the proposal to delete the 10 Commercial Waste Tower Hamlets Enforcement Officers (THEO) posts. The Committee noted that the function of this service is to monitor the commercial waste refuse and  ...  view the full minutes text for item 5

An amended Appendix 9 to the report was tabled. A number of amendments to the budget proposals were agreed (set out below) but these did not alter the text of the decisions at this stage.

•              The proposal to save £93k by Reducing or Stopping Sunday Idea Store opening will not be progressed.

•              The proposal to reduce the corporate match funding budget by £246k will also not be progressed.

•              And the saving of £241k from the Review Day Services for Older People will only be progressed once suitable alternative to current provision has been found for any service users affected.

DECISION

1.    To agree a General Fund Revenue Budget of £358.774m for 2016-17.

2.    To accept the proposed increase to Council tax (Band D) of 3.99% in 2016-17 and thereby agree Council Tax (Band D) at £920.85 for the new financial year.

3.    To agree to propose the items listed below for public consultation and consideration by the Overview and Scrutiny Committee in accordance with the Budget and Policy Framework. A further report will then be submitted to the next Cabinet meeting in February detailing the results of consultations and feedback from Overview and Scrutiny committee; inviting Cabinet to recommend a Budget Requirement and Council Tax for 2016-17 to Full Council.

4.    To note the following matters:

Budget Consultation

The outcome of consultation with residents and Overview and Scrutiny Committee on savings proposals as detailed in section 3.12 and Appendix 9.

Funding

The funding available for 2016-17 and the indications and forecasts for future years set out in Section 3.4.

Base Budget 2016-17

The Base Budget for 2016-17 as £350.346mas detailed in Appendix 1.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2016-17 and future years and as set out in Section 3.5 and in Appendix 3.

General Fund Revenue Budget for 2016-17 and Medium Term Financial Plan 2016-17to 2019-20

The initial budget proposal and Council Tax for 2016-17 together with the Medium Term Financial Plan set out in Appendix 1.

Savings

New savings items to be included in the budget for 2016-17 and the strategic approach for future savings to be delivered are set out in Section 3.6, Appendix 4.1 and 4.2 of the report.

Capital Programme

The capital programme to 2018-19; including the proposed revisions to the current programme as set out in section 3.10 and detailed in Appendices 8.1, 8.2 & 8.3, and the proposed refresh of the council’s capital strategy during 2016-17.

To adopt a capital estimate for Communities, Localities & Culture TFL LIP schemes (2016-17) totalling £2.487m & S106 schemes totalling £0.276m as detailed in Appendices 8.1 & 8.2.

Dedicated Schools Grant

The position with regards to the Dedicated Schools Grant as set out in Section 3.8 and Appendices 6.1 & 6.2.

Housing Revenue Account

The position with regards to the Housing Revenue Account as set out in Section 3.9 and Appendix 7.

Financial Risks: Reserves and Contingencies

The strategic budget risks and  ...  view the full decision text for item 5

Councillor David Edgar, Cabinet Member for Resources, introduced the report and tabled an amended Appendix 9. He drew Members attention to the provisional nature of some of the figures from the government which could result in further changes to the proposals. He also highlighted a number of the growth and savings proposals contained in the report and recommended some further amendments to the original draft proposals:

•              The proposal to save £93k by Reducing or Stopping Sunday Idea Store opening will not be progressed.

•              The proposal to reduce the corporate match funding budget by £246k will also not be progressed.

•              And the saving of £241k from the Review Day Services for Older People would only be progressed once suitable alternative to current provision has been found for any service users affected.

He reported that the Council had a relatively low Council Tax compared to other London Boroughs and that the government was assuming that Councils would be increasing the tax by 2% to support adult social care services. The draft budget also included proposals for a 1.99% increase on top of that although it was hoped not to have to include this additional increase in future years. Finally, he drew Members attention to sections of the report on the reserves and capital projects as well as potential risks around reductions in the new homes bonus and funding for schools.

The Mayor thanked Councillor David Edgar and officers for the report. He highlighted that the budget was still a work in progress in particular as he had only been Mayor for six months. He noted that some of the savings targets were ambitious but there were significant cuts that were required and so there would have to be a continual review of budgets.

Particular issues he would continue to monitor included:

• Whether early years services savings negatively impacted on those services.
• Potential growth required to improve street cleaning.
• The impact of benefit changes and welfare reform.

It was noted that the draft budget would be considered by the Overview and Scrutiny Committee meeting on 18 January 2016. 

During discussion Members noted the need to monitor the savings proposals that were being made in partnership with the East London NHS Trust and also that the proposed Council Tax increase to cover Social Care was not expected to fully cover the pressures on those services.

The Mayor accepted the amendments proposed by Councillor David Edgar, and subject to those, he agreed the recommendations as set out in the report.

RESOLVED

1.    Subject to the above amendments, to agree a General Fund Revenue Budget of £358.774m for 2016-17.

2.    To accept the proposed increase to Council tax (Band D) of 3.99% in 2016-17 and thereby agree Council Tax (Band D) at £920.85 for the new financial year.

3.    Subject to the above amendments, to agree to propose the items listed below for consideration by the Overview and Scrutiny Committee at a public meeting in accordance with the Budget and Policy Framework.  ...  view the full minutes text for item 5