To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax for 2017/18.

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

Three amendments were moved as follows:

(i)    Amendment proposed by Councillor Ohid Ahmed and seconded by Councillor Oliur Rahman

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

(iii)Amendment proposed by Councillor Rabina Khan and seconded by Councillor Abdul Asad.  [Note – a minor amendment was noted to the tabled paper]

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

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

The amendment proposed by Councillor Rabina Khan 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 2017-18

1.    To agree a General Fund revenue budget of £338.896m and a total Council Tax Requirement for Tower Hamlets in 2017-18 of £85.836m as set out in the table below.

Mayor John Biggs moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor David Edgar seconded the proposals. It was noted that the covering report for the February Cabinet meeting was circulated in Members as an addendum.

Three amendments were moved as follows:

(i)    Amendment proposed by Councillor Ohid Ahmed and seconded by Councillor Oliur Rahman

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

(iii)Amendment proposed by Councillor Rabina Khan and seconded by Councillor Abdul Asad.  [Note – a minor amendment was noted to the tabled paper]

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

Councillors recorded their votes on the amendment as follows:-

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

Councillors recorded their votes on the amendment as follows:-

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

Councillors recorded their votes on the amendment as follows:-

The Chair summarised for the Committee on Budget Scrutiny journey for 2017/2018 which is set out as follows:

The Committee noted that:

·         The initial consideration of Budget approach had been undertaken from September until December;

·         On the 4^th January the Committee had considered the Strategic Overview of the Budget and identified the focus for in depth review of the key drivers - scale of funding and service changes.  Together with the introduction of the Outcome Based Budgeting approach;

·         The 4^th January, meeting had taken a strategic approach looking at the overall budget package, key drivers for change and the proposed approach to transformation included review and consideration of the Mayors strategic approach and the links between the proposed budget, Medium Term Financial Plan, Treasury Management approach and the refreshed strategic plan, financial resources funding the budget including council tax and business rates, reserves policy, schools funding, Capital and HRA budgets and the robustness of the approach to risk;

·         There had been a review of the range of budget pressures and the proposed growth allocations along with an overview of the extensive range of savings proposals;

·         The criteria for the selection of specific business cases for more in depth scrutiny had been based on the following key drivers: Prioritising Business Cases with early implementation in the 17/18 budget year; Focusing on larger budget areas and significant elements of change to the existing budget base;

·         Business cases which are likely to impact on the wider Tower Hamlets community; the risk to the achievement of the proposal and wider impact on delivering overall budget savings; and those proposals that are likely to have a significant impact on specific sections of our communities and the protected characteristics;

·         Tonight’s meeting would undertake a further scrutiny of the budget and development of recommendations for initial consideration by Cabinet on 7^th February, 2017 and finally to Council on 22^nd February, 2017.

The Committee then considered the Budget Pack and the questions and comments on this pack may be summarised are follows:

§  Regarding the widening participation in Early Years what will happen to those employees affected?

§  With the changes in the way the services are provided impact upon the user’s experience?

§  What is in place to ensure that there is a smooth transition to another provider e.g. that there will be no gaps in provision?  

§  With regards to addressing poverty and the hard to reach communities we need to be sure that the resources will be there to address people’s needs?

§  Is not profitability the main driver for these changes in provision?

§  What will be the impact of the reduction in management posts in the Educational Psychology Service?

§  The proposed Band D Council Tax is £966.80 for 2017/18?

§  What is the funding for addressing drug related crime?

§  What will be the impact of the departure of the United Kingdom from the European Union?

§  What provision has been made to address the recommendations of the  ...  view the full minutes text for item 7

Pre-Decision Scrutiny Questions and responses were noted.

DECISION

1.    Approved a draft General Fund Revenue Funding Requirement of £338.896m subject to any changes arising from the Final Local Government Finance Settlement.

2.    Agreed a proposed Band D Council Tax at £966.80 for 2017/18 to be referred to Full Council for consideration.

3.    Agreed 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 2017/18 to Full Council.

General Fund Revenue Budget for 2017/18 and Medium Term Financial Plan 2017/18to 2019/20

The initial budget proposal and Council Tax for 2017/18 together with the Medium Term Financial Plan set out in Appendix 1a.

Budget Consultation

The outcome of consultation with business ratepayers, residents and other stakeholders as reported to The Mayor in Cabinet in December 2016 and attached for ease of reference at Appendix 10.

Funding

The funding available for 2017/18 and the indications and forecasts for future years set out in Section 3.4.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2017/18 and future years together with new initiatives identified as Mayoral Priority Growth as set out in Section 3.5 and in Appendix 3.

Savings

New proposed saving items to be delivered in 2017 - 2020 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 at Appendix 6.

Reserves and Balances

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

Dedicated Schools Grant

The position for the Dedicated Schools Grant as set out in Section 3.9.

Housing Revenue Account

The position for the Housing Revenue Account as set out in Section 3.10 and Appendix 8.

Capital Programme

The capital programme to 2019/20; including the proposed revisions to the current programme, as set out in Section 3.11 and detailed in Appendix 9 (a – c) in advance of the proposed refresh of the council’s capital programme following consideration of revised Capital and Investment strategies in 2017.

To adopt a capital estimate for new schemes detailed in Appendix 9b.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

Councillor David Edgar, Cabinet Member for Resources introduced this report that set out proposals which will form part of the draft Medium Term Financial Plan (MTFP) covering the three year period from 2017/18 to 2019/20. It also focusses on the 2017/18 budget setting process and brings together many of the component elements of that budget.

It was noted that the Mayor in Cabinet is recommended to propose a draft budget for consultation with the Overview and Scrutiny Committee in accordance with the Budget and Policy Framework. Then a further report will then be submitted to the next Cabinet meeting in February detailing feedback from Overview and Scrutiny committee; inviting The Mayor in Cabinet to recommend a Budget Requirement and Council Tax for 2017/18 to Full Council.

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

RESOLVED

1.    To agree the draft General Fund Revenue Funding Requirement of £338.896m subject to any changes arising from the Final Local Government Finance Settlement;

2.    To agree Band D Council Tax at £966.80 for 2017/18 to be referred to Full Council for consideration; and

3.    To note the following matters:

General Fund Revenue Budget for 2017/18 and Medium Term Financial Plan 2017/18 to 2019/20

The initial budget proposal and Council Tax for 2017/18 together with the Medium Term Financial Plan set out in Appendix 1a.

Budget Consultation

The outcome of consultation with business ratepayers, residents and other stakeholders as reported to The Mayor in Cabinet in December 2016 and attached for ease of reference at Appendix 10.

Funding

The funding available for 2017/18 and the indications and forecasts for future years set out in Section 3.4.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2017/18 and future years together with new initiatives identified as Mayoral Priority Growth as set out in Section 3.5 and in Appendix 3.

Savings

New proposed saving items to be delivered in 2017 - 2020 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 at Appendix 6.

Reserves and Balances

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

Dedicated Schools Grant

The position for the Dedicated Schools Grant as set out in Section 3.9.

Housing Revenue Account

The position for the Housing Revenue Account as set out in Section 3.10 and Appendix 8.

Capital Programme

The capital programme to 2019/20; including the proposed revisions to the current programme, as set out in Section 3.11 and detailed in Appendix 9 (a – c) in advance of the proposed refresh of the council’s capital programme following consideration of revised Capital and Investment strategies in 2017.

To adopt a capital estimate for new schemes detailed in Appendix 9b.

The Budget Document Pack will be circulated separately.