To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax 2018/19. Please note that this report includes the General Fund Revenue and Capital Budget and Medium Term Financial Plan Plan 2018/19 - 2020/21, the Housing Revenue Account and the Treasury Management Strategy Statement.

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.

Four amendments were moved as follows:

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

(ii)  Amendment proposed by Councillor Rabina Khan and seconded by Councillor Abdul Asad

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

(iv)Amendment proposed by Councillor Shafiqul Haque and seconded by Councillor Abdul Mukit MBE. This amendment was accepted by the Mayor as a ‘friendly amendment’ and the substantive motion was adjusted as required 

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

The substantive budget motion including the ‘friendly amendment’ were then put to a recorded vote and were agreed.

DECISIONS

1.            That the contents of the report be noted

2.            To note that there will be a review of the Adult Social Care Charging scheme during 2018/19 to evaluate its impact, to ensure that all recipients of Social Care are properly assessed and to see what additional safeguards or allowances can be introduced to ensure that those who contribute do so at a level that minimises charges while ensuring that a reasonable contribution is made towards the ever increasing its of adult social care. We note that the crisis of adult social care funding is a creation of the Government, as a direct result of the cuts they have made in local government spending.

3.            To note that the Burial Subsidy remains the same although restricted to Kemnal park. 

4.            To note that the Council Tax, other that the ‘Adult Social Care Precept’ will be frozen for 2018/19, and that the Mayor has indicated his wish to continue with the lowest possible Council Tax compatible with meeting the needs of people in our community.”

General Fund Revenue Budget and Council Tax Requirement 2018-19

1.            To agree a General Fund revenue budget of £343.730m and a total Council Tax Requirement for Tower Hamlets in 2018-19 of £93.777m 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.

Four amendments were moved as follows:

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

(ii)  Amendment proposed by Councillor Rabina Khan and seconded by Councillor Abdul Asad

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

(iv)Amendment proposed by Councillor Shafiqul Haque and seconded by Councillor Abdul Mukit MBE. This amendment was accepted by the Mayor as a ‘friendly amendment’ and the substantive motion was adjusted as required 

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

The Mayor and 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.

The Mayor and 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.

The Mayor and Councillors recorded their votes  ...  view the full minutes text for item 5

The Supplemental Pack circulated to Members in advance of the meeting was noted.

DECISION

1.            To propose a draft General Fund Revenue Funding Requirement of £344.299m subject to any changes arising from the Final Local Government Finance Settlement.

2.            To propose a Band D Council Tax of £986.14 for 2018-19 to be referred to Full Council for consideration.

3.            To agree to increase the Council Tax empty homes premium from 50% to 100%.

4.            To confirm the Council’s decision to be included in the London-wide business rates retention pilot from the 1st April 2018.

5.            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 2016-17, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2018. This equates to an average rent reduction of £1.14 per week for 2018-19.

6.            To agree that the average weekly tenanted service charge will increase by 4% from the first rent week in April 2018.

7.            To note the refreshed priorities and outcomes (Paragraph 3.2.4) for the final year of the three year Strategic Plan agreed by Cabinet in April 2016.

8.            To note the following:

General Fund Revenue Budget for 2018-19 and Medium Term Financial Strategy 2018-19 to 2020-21

The initial budget proposal and Council Tax for 2018-19 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 will be reported to Cabinet on the 30th January 2018.

Funding

The funding available for 2018-19 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 potential growth and inflation commitments arising in 2018-19 and future years together with new initiatives identified as Mayoral Priority Growth 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 2018-19 and 2020-21 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 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 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 proposals for Rent and Tenanted Service Charge Setting – 2018-19 and Equalities impact assessment set out in Section 3.10 of the report and Appendix 8 to the report.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Divisional Director, Finance, Procurement and Audit (N. Murton)  ...  view the full decision text for item 5

The Supplemental Pack circulated to Members in advance of the meeting was tabled and noted.

Councillor David Edgar, Cabinet Member for Resources, introduced the report proposing a draft Budget for consultation. He explained that in February 2017 the Council had agreed a three year budget plan. This report therefore provided an update to that previous report as well as adding on an additional year 2020-21 to maintain the three year Medium Term Financial Strategy.

He took Members through the report including highlighting a number of points including the funding pressures the Council was under from government cuts, the introduction of a London-wide business rates retention pilot scheme and the impact of demographic and inflationary changes. The budget was also specifically prepared to focus on the Council’s identified priority areas.

The report also set out specific growth plans such as extending free school meals, more money for tackling anti-social behaviour and efforts to deal with air quality. Savings identified included on back-office functions, introducing new LED streetlights and better use of Council assets.

Cabinet discussed the report and noted a number of issues including:

·         The investment in children’s services for the most vulnerable especially around children’s social care.

·         The funding for supporting residents to find work, such as training more childcare staff and launching the Young Workpath service.

·         The commitment to support private renters with increased enforcement work and the private renters’ charter.

·         A new air quality assistant to help drive the air quality action plan forward.

·         Pilot schemes for neighbourhood management teams to tackle anti-social behaviour.

·         The growth bid for adult social care due to the predicted population growth increasing demand for those services, especially amongst the elderly.

·         Work to recruit environmental health staff with a particular focus on encouraging student placements.

·         The funding for youth services being the largest per young person in the country.

The Mayor welcomed the report. He noted the impact the required budget cuts would have on certain services but considered the proposals were judiciously prepared and had an important focus on key areas. He then took Cabinet through each of the recommendations, noting that, whilst the main budget proposals were to be put out for consultation, there were a number of linked items that were for decision at this meeting. He agreed the recommendations as set out.

RESOLVED

1.            To propose a draft General Fund Revenue Funding Requirement of £344.299m subject to any changes arising from the Final Local Government Finance Settlement.

2.            To propose a Band D Council Tax of £986.14 for 2018-19 to be referred to Full Council for consideration.

3.            To agree to increase the Council Tax empty homes premium from 50% to 100%.

4.            To confirm the Council’s decision to be included in the London-wide business rates retention pilot from the 1st April 2018.

5.            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 2016-17, and consequently to agree an average  ...  view the full minutes text for item 5