To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax 2019/20. Please note that this report includes the General Fund Revenue and Capital Budget and Medium Term Financial Plan 2019/20 – 2021/22, 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 Candida Ronald seconded the proposals.

Councillor Rabina Khan proposed and Councillor Andrew Wood seconded an additional amendment without notice on the subject of providing resources for safeguarding against radicalism. In accordance with Council Procedure Rule 2.5, the Speaker adjourned the meeting at 7.40 p.m. so that officers’ advice could be sought on whether Councillor Rabina Khan’s proposed amendment could be accepted for debate.  The meeting reconvened at 7.50pm. 

Following the adjournment, the Monitoring Officer advised that the proposed amendment was in order. The Speaker then put the proposal that the amendment be accepted for debate to the vote. This proposal was defeated.

Councillor Puru Miah withdrew his amendment at the beginning of the debate.

Councillor Andrew Wood then moved and Councillor Peter Golds seconded an amendment

Following debate, the amendment proposed by Councillor Andrew Wood 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: -

1.         Agree a General Fund revenue budget of £342.560m and a total Council Tax Requirement for Tower Hamlets in 2019-20 of £100.331m 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 Candida Ronald seconded the proposals.

Councillor Rabina Khan proposed and Councillor Andrew Wood seconded an additional amendment without notice on the subject of providing resources for safeguarding against radicalism. In accordance with Council Procedure Rule 2.5, the Speaker adjourned the meeting at 7.40 p.m. so that officers’ advice could be sought on whether Councillor Rabina Khan’s proposed amendment could be accepted for debate.  The meeting reconvened at 7.50pm. 

Following the adjournment, the Monitoring Officer advised that the proposed amendment was in order. The Speaker then put the proposal that the amendment be accepted for debate to the vote. This proposal was defeated.

Councillor Puru Miah withdrew his amendment at the beginning of the debate.

Councillor Andrew Wood then moved and Councillor Peter Golds seconded an amendment

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

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

RESOLVED

That Council: -

1.         Agree a General Fund revenue budget of £342.560m and a total Council Tax Requirement for Tower Hamlets in 2019-20 of £100.331m as set out in the table below.

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  ...  view the full decision text for item 6

Councillor Candida Ronald, Cabinet Member for Resources and the Voluntary Sector, introduced the report. She provided the meeting with a summary of the financial challenges the Council faced, in particular in relation to the cuts in support from central government.

However, despite this the Council was still looking to invest in key areas that local residents had identified in the recent consultation exercise including around issues such as tackling anti-social behaviour and gangs whilst looking to support young people and vulnerable residents.

Finally she highlighted a few changes from the draft budget including on the business rate levy and empty homes premium.

The Mayor welcomed the report and the investments the Council was able to make in areas such as maintaining the resident support scheme and free school meals. He thanked Overview and Scrutiny for their scrutinising of the budget and he noted their submitted report. He then agreed the recommendations set out including to submit the proposed budget to Council for final consideration.

RESOLVED

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  ...  view the full minutes text for item 6

DECISION

1.    To propose a draft General Fund Revenue Funding Requirement of £342.560m subject to any changes arising from the Final Local Government Finance Settlement.

2.    To propose a Band D Council Tax of £1,019.67 for 2019-20 to be referred to Full Council for consideration.

3.    To confirm the Council’s decision to participate in the 75% London Business rates pilot for 2019-20 and note the deadline of the 10^th January 2019 for authorities wishing not to participate.

4.    To agree the draft 2019-20 Housing Revenue Budget as set out in Appendix 8A.

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

6.    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 April 2016, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2019. This equates to an average weekly rent reduction of £1.08.

7.    To agree that the average weekly tenanted service charge will be increased by 3.4% from the first rent week in April 2019. This equates to an average weekly increase in tenanted service charge of approximately £0.28.

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 proposals and Council Tax for 2019-20 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 as set out in Section 3.13 of the report and Appendix 10 to the report.

Funding

The funding available for 2019-20 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 the potential growth and inflation commitments arising in 2019-20 and future years 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 2019-22 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 reserves policy and 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 5 and 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 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 of the report and Appendix 8 to the report. 

Capital  ...  view the full decision text for item 6

Councillor Candida Ronald, Cabinet Member for Resources and the Voluntary Sector, introduced the report on the draft budget proposals. She took the meeting through the financial background to the report including around government funding reductions and pressures on services. She highlighted that significant cuts to funding were still expected and so it was important for the Council to be able to focus on those areas residents valued most.

She highlighted how the consultation responses were valuable in understanding resident priorities and that they were reflected in the report.

The Mayor welcomed how the budget proposals reflected his manifesto ambitions to create a cleaner, safer and fairer borough. He then opened up the discussion to Members.

A number of Members spoke to highlight specific issues and areas within the budget including around:

·         Waste, recycling, the street scene and the environment.

·         Improvements to the out of hours environmental health service.

·         Anti-social behaviour, crime, gang culture and security.

·         Tackling drug and alcohol misuse.

·         Investment in early years education, free school meals for primary school children and children’s social care.

·         Work to tackle poverty.

·         The commitment to support older people and investments in adult social care.

The Mayor thanked everyone for their contributions. He agreed the recommendations set out and stated he looked forward to reading the response of the Overview and Scrutiny Committee to these draft recommendations.

RESOLVED

1.    To propose a draft General Fund Revenue Funding Requirement of £342.560m subject to any changes arising from the Final Local Government Finance Settlement.

2.    To propose a Band D Council Tax of £1,019.67 for 2019-20 to be referred to Full Council for consideration.

3.    To confirm the Council’s decision to participate in the 75% London Business rates pilot for 2019-20 and note the deadline of the 10^th January 2019 for authorities wishing not to participate.

4.    To agree the draft 2019-20 Housing Revenue Budget as set out in Appendix 8A.

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

6.    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 April 2016, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2019. This equates to an average weekly rent reduction of £1.08.

7.    To agree that the average weekly tenanted service charge will be increased by 3.4% from the first rent week in April 2019. This equates to an average weekly increase in tenanted service charge of approximately £0.28.

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 proposals and Council Tax for 2019-20 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 as set out in  ...  view the full minutes text for item 6