Agenda item
BUDGET AND COUNCIL TAX 2020/21
- Meeting of Budget Council, Council, Wednesday, 19th February, 2020 7.00 p.m. (Item 5.)
- View the background to item 5.
To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax 2020-21, as agreed at the Cabinet Meeting on 29th January 2020.
To also consider the Treasury Management Strategy Statement, Investment Strategy Report and Capital Strategy Report for 2020-21, approved for recommendation to Council by the Audit Committee on 30th January 2020.
Minutes:
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 Peter Golds then moved and Councillor Andrew Wood seconded an amendment as set out in the supplementary agenda.
Councillor Rabina Khan then moved and Councillor Harun Miah seconded an amendment as set out in the supplementary agenda.
Following debate, the amendment proposed by Councillor Peter Golds 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.
RESOLVED:
General Fund Revenue Budget and Council Tax Requirement 2020-21
1. Approve the Council Tax Resolution, detailed in Appendix A to this motion attached to the minutes.
2. Agree a General Fund revenue budget of £354.496m and a total Council Tax Requirement for Tower Hamlets in 2020-21 of £108.438m as set out in the table below.
2019-20 |
Savings |
Growth |
One Off Adjustments |
2020-21 |
||||
Total |
Approved |
New |
Approved |
New |
Approved |
New |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Services |
|
|
||||||
Health, Adults & Community |
106,726 |
(1,190) |
(132) |
3,499 |
2,388 |
(2,804) |
- |
108,487 |
Public Health |
34,124 |
- |
- |
- |
921 |
- |
- |
35,045 |
Children & Culture |
98,329 |
(1,500) |
(44) |
(2,032) |
10,596 |
(120) |
- |
105,229 |
Place |
68,382 |
(3,380) |
379 |
(1,578) |
1,464 |
(1,716) |
- |
63,551 |
Governance |
15,377 |
- |
- |
- |
- |
- |
- |
15,377 |
Resources |
15,307 |
(2,120) |
(80) |
- |
1,285 |
(300) |
- |
14,092 |
Net Service Costs |
338,245 |
(8,190) |
123 |
(111) |
16,654 |
(4,939) |
- |
341,781 |
Corporate Costs |
|
|
||||||
Capital Charges |
6,839 |
- |
- |
- |
- |
- |
- |
6,839 |
Levies |
1,892 |
- |
- |
- |
- |
- |
- |
1,892 |
Pensions |
12,790 |
- |
- |
- |
- |
- |
- |
12,790 |
Corporate Contingency |
3,150 |
- |
- |
- |
- |
- |
- |
3,150 |
Other Corporate Costs |
(25,324) |
(6,400) |
3,725 |
- |
2,841 |
- |
- |
(25,158) |
Net Corporate Costs |
(653) |
(6,400) |
3,725 |
- |
2,841 |
- |
- |
(487) |
Inflation |
4,969 |
- |
- |
7,500 |
- |
733 |
- |
13,202 |
Total Funding Requirement |
342,560 |
(14,590) |
3,848 |
7,389 |
19,495 |
(4,206) |
- |
354,496 |
|
|
|
||||||
Revenue Support Grant |
(33,281) |
- |
- |
- |
(542) |
- |
- |
(33,823) |
Retained Business Rates |
(139,555) |
- |
- |
- |
(2,791) |
- |
- |
(142,346) |
Business Rates (London Pilot) |
(4,000) |
- |
- |
- |
2,561 |
- |
- |
(1,439) |
BR Collection Fund Deficit |
|
- |
- |
- |
- |
- |
17,920 |
17,920 |
Collection Fund funding (Reserves) |
|
- |
- |
- |
- |
- |
(17,920) |
(17,920) |
Council Tax |
(100,331) |
- |
- |
- |
(8,106) |
- |
- |
(108,438) |
Core Grants |
|
|
||||||
-Public Health Grant |
(34,124) |
- |
- |
- |
(921) |
- |
- |
(35,045) |
-New Homes Bonus |
(3,182) |
- |
- |
- |
(2,800) |
- |
- |
(5,982) |
-Improved Better Care Fund |
(16,351) |
- |
- |
- |
35 |
- |
- |
(16,316) |
-Social Care Support Grant |
(2,500) |
- |
- |
- |
(6,867) |
- |
- |
(9,367) |
Core Grants |
(56,393) |
- |
- |
- |
(10,317) |
- |
- |
(66,710) |
Total Funding |
(333,561) |
- |
- |
- |
(19,195) |
- |
- |
(352,756) |
General Fund Reserve Drawdown |
(8,999) |
|
|
|
|
|
|
(1,740) |
3. Agree a Council Tax for Tower Hamlets in 2020-21 of £1,060.35 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 the previous year and a 2% increase in respect of the Adult Social Care ‘Precept’.
BAND |
PROPERTY VALUE |
RATIO |
LBTH COUNCIL TAX FOR EACH BAND £ |
|
FROM £ |
TO £ |
|||
A |
0 |
40,000 |
6/9 |
706.90 |
B |
40,001 |
52,000 |
7/9 |
824.72 |
C |
52,001 |
68,000 |
8/9 |
942.53 |
D |
68,001 |
88,000 |
9/9 |
1060.35 |
E |
88,001 |
120,000 |
11/9 |
1295.98 |
F |
120,001 |
160,000 |
13/9 |
1531.62 |
G |
160,001 |
320,000 |
15/9 |
1767.25 |
H |
320,001 |
and over |
18/9 |
2120.70 |
4. Agree that for the London Borough of Tower Hamlets in 2020-21:
(a) The Council Tax for Band D taxpayers, before any discounts, and including the GLA precept, shall be £1,392.42 as shown below:
|
BAND D |
LBTH |
£1,060.35 |
GLA |
£332.07 |
Total |
£1,392.42 |
(b) The Council Tax for taxpayers in all other bands, before any discounts, and including the GLA precept, shall be as detailed in the table below:
BAND
|
PROPERTY VALUE |
RATIO TO BAND D
|
LBTH
£ |
GLA
£ |
TOTAL COUNCIL TAX £ |
|
FROM £ |
TO £ |
|||||
A |
0 |
40,000 |
6/9 |
706.90 |
221.38 |
928.28 |
B |
40,001 |
52,000 |
7/9 |
824.72 |
258.28 |
1,082.99 |
C |
52,001 |
68,000 |
8/9 |
942.53 |
295.17 |
1,237.70 |
D |
68,001 |
88,000 |
9/9 |
1060.35 |
332.07 |
1,392.42 |
E |
88,001 |
120,000 |
11/9 |
1295.98 |
405.86 |
1,701.85 |
F |
120,001 |
160,000 |
13/9 |
1531.62 |
479.66 |
2,011.28 |
G |
160,001 |
320,000 |
15/9 |
1767.25 |
553.45 |
2,320.70 |
H |
320,001 |
and over |
18/9 |
2120.70 |
664.14 |
2,784.84 |
5. Approve the Treasury Management Strategy Statement, the Annual Investment Strategy and the Capital Strategy (which incorporates the Minimum Revenue Provision Policy Statement) as presented to Audit Committee on 30 January 2020.
6 Approve the General Fund Capital and Revenue Budgets and Medium Term Financial Plan 2020-2023 as agreed by the Mayor in Cabinet on 29 January 2020 and summarised in the tables below.
Summary of Medium Term Financial Plan 2019-2023 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Net Service Costs |
343,730 |
342,560 |
354,496 |
347,449 |
Growth |
|
|
|
|
- Previously approved by Full Council |
6,176 |
- |
||
- New |
- |
|||
Inflation |
|
|
|
|
- Previously approved by Full Council |
7,500 |
- |
||
- New |
- |
- |
- |
|
Savings |
|
|
|
|
- Previously approved by Full Council |
(14,845) |
- |
||
- Write back of previously approved Savings by Full Council |
- |
4,822 |
69 |
74 |
- New |
- |
|||
Total Funding Requirement |
342,560 |
354,496 |
347,449 |
350,086 |
|
|
|
|
|
Revenue Support Grant |
(33,281) |
(33,823) |
(34,501) |
(35,191) |
Retained Business Rates |
(139,555) |
(142,346) |
(126,346) |
(126,346) |
Business Rates (London Pilot) |
(4,000) |
(1,439) |
- |
- |
Council Tax |
(100,331) |
(108,438) |
(116,148) |
(124,406) |
Core Grants |
(56,393) |
(66,710) |
(57,744) |
(58,459) |
Total Funding |
(333,561) |
(352,756) |
(334,739) |
(344,402) |
|
|
|
|
|
Budget Gap (excluding use of Reserves) |
8,999 |
1,740 |
12,710 |
5,684 |
|
|
|
|
|
General Fund Reserve Contribution / Drawdown (+/-) |
(8,999) |
(1,740) |
- |
- |
|
|
|
|
|
Unfunded Gap Before Additional Savings |
- |
- |
12,710 |
5,684 |
Additional Savings to be identified |
|
- |
(12,710) |
(5,684) |
Expected Budget Gap |
- |
- |
- |
- |
Detailed Analysis of Medium Term Financial Plan by Service Area 2019-20 to 2022-23 |
|
|
|
|
|
|||||||||||||||
2019-20 |
Savings |
Growth |
One Off Adjustments |
2020-21 |
Savings |
Growth |
One Off Adjustments |
2021-22 |
Savings |
Growth |
2022-23 |
|||||||||
Total |
Approved |
New |
Approved |
New |
Approved |
New |
Total |
Approved |
New |
Approved |
New |
Approved |
New |
Total |
Approved |
New |
Approved |
New |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Funding Requirement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
|
|
|
|
||||||||||||||||
Health, Adults & Community |
106,726 |
(1,190) |
(132) |
3,499 |
2,388 |
(2,804) |
- |
108,487 |
(1,700) |
(791) |
4,375 |
(477) |
- |
109,895 |
- |
(550) |
- |
114,115 |
||
Public Health |
34,124 |
- |
- |
- |
921 |
- |
- |
35,045 |
- |
- |
- |
701 |
- |
- |
35,746 |
- |
- |
- |
715 |
36,461 |
Children & Culture |
98,329 |
(1,500) |
(44) |
(2,032) |
10,596 |
(120) |
- |
105,229 |
(300) |
(2,168) |
1,604 |
(400) |
(2,031) |
- |
101,934 |
- |
(1,327) |
- |
(2,250) |
98,357 |
Place |
68,382 |
(3,380) |
379 |
(1,578) |
1,464 |
(1,716) |
- |
63,551 |
(329) |
(1,135) |
374 |
- |
(2,522) |
- |
59,939 |
- |
(525) |
- |
- |
59,414 |
Governance |
15,377 |
- |
- |
- |
- |
- |
- |
15,377 |
- |
(140) |
- |
330 |
(100) |
- |
15,467 |
- |
(200) |
- |
- |
15,267 |
Resources |
15,307 |
(2,120) |
(80) |
- |
1,285 |
(300) |
- |
14,092 |
(200) |
(650) |
- |
- |
(115) |
- |
13,127 |
- |
(200) |
- |
- |
12,927 |
Net Service Costs |
338,245 |
(8,190) |
123 |
(111) |
16,654 |
(4,939) |
- |
341,781 |
(2,529) |
(4,884) |
6,353 |
631 |
(5,245) |
- |
336,108 |
- |
(2,802) |
- |
3,235 |
336,541 |
Corporate Costs |
|
|
|
|
||||||||||||||||
Capital Charges |
6,839 |
- |
- |
- |
- |
- |
- |
6,839 |
- |
- |
- |
- |
- |
- |
6,839 |
- |
- |
- |
- |
6,839 |
Levies |
1,892 |
- |
- |
- |
- |
- |
- |
1,892 |
- |
- |
- |
- |
- |
- |
1,892 |
- |
- |
- |
- |
1,892 |
Pensions |
12,790 |
- |
- |
- |
- |
- |
- |
12,790 |
- |
- |
- |
- |
- |
- |
12,790 |
- |
- |
- |
- |
12,790 |
Corporate Contingency |
3,150 |
- |
- |
- |
- |
- |
- |
3,150 |
- |
- |
- |
- |
- |
- |
3,150 |
- |
- |
- |
- |
3,150 |
Other Corporate Costs |
(25,324) |
(6,400) |
3,725 |
- |
2,841 |
- |
- |
(25,158) |
(5,630) |
(445) |
- |
(1,798) |
- |
- |
(33,031) |
- |
(4,370) |
- |
74 |
(37,327) |
Net Corporate Costs |
(653) |
(6,400) |
3,725 |
- |
2,841 |
- |
- |
(487) |
(5,630) |
(445) |
- |
(1,798) |
- |
- |
(8,360) |
- |
(4,370) |
- |
74 |
(12,656) |
Inflation |
4,969 |
- |
- |
7,500 |
- |
733 |
- |
13,202 |
- |
- |
- |
- |
- |
19,702 |
- |
- |
- |
26,202 |
||
Total Funding Requirement |
342,560 |
(14,590) |
3,848 |
7,389 |
19,495 |
(4,206) |
- |
354,496 |
(8,159) |
(5,329) |
12,853 |
(1,167) |
(5,245) |
- |
347,449 |
- |
(7,172) |
- |
9,809 |
350,086 |
|
|
|
|
|
||||||||||||||||
Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Support Grant |
(33,281) |
- |
- |
- |
(542) |
- |
- |
(33,823) |
- |
- |
- |
(678) |
- |
- |
(34,501) |
- |
- |
- |
(690) |
(35,191) |
Retained Business Rates |
(139,555) |
- |
- |
- |
(2,791) |
- |
- |
(142,346) |
- |
16,000 |
- |
- |
- |
- |
(126,346) |
- |
- |
- |
- |
(126,346) |
Business Rates (London Pilot) |
(4,000) |
- |
- |
- |
2,561 |
- |
- |
(1,439) |
- |
- |
- |
1,439 |
- |
- |
- |
- |
- |
- |
- |
- |
BR Collection Fund Deficit |
- |
- |
- |
- |
- |
- |
17,920 |
17,920 |
- |
- |
- |
- |
- |
(17,920) |
- |
- |
- |
- |
- |
- |
BR Collection Fund Deficit funding from Reserves |
- |
- |
- |
- |
- |
- |
(17,920) |
(17,920) |
- |
- |
- |
- |
- |
17,920 |
- |
- |
- |
- |
- |
- |
Council Tax |
(100,331) |
- |
- |
- |
(8,106) |
- |
- |
(108,438) |
- |
- |
(7,710) |
- |
- |
(116,148) |
- |
- |
(8,258) |
(124,406) |
||
Core Grants |
|
|
|
|
||||||||||||||||
-Public Health Grant |
(34,124) |
- |
- |
- |
(921) |
- |
- |
(35,045) |
- |
- |
- |
(701) |
- |
- |
(35,746) |
- |
(715) |
- |
- |
(36,461) |
-New Homes Bonus |
(3,182) |
- |
- |
- |
(2,800) |
- |
- |
(5,982) |
- |
- |
- |
2,800 |
- |
- |
(3,182) |
- |
- |
- |
- |
(3,182) |
-Improved Better Care Fund |
(16,351) |
- |
- |
- |
35 |
- |
- |
(16,316) |
- |
- |
- |
- |
- |
- |
(16,316) |
- |
- |
- |
- |
(16,316) |
-Social Care Support Grant |
(2,500) |
- |
- |
- |
(6,867) |
- |
- |
(9,367) |
- |
- |
- |
6,867 |
- |
- |
(2,500) |
- |
- |
- |
- |
(2,500) |
-School Improvement Monitoring and Brokering Grant |
(200) |
- |
- |
- |
200 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
-Local Lead Flood |
(36) |
- |
- |
- |
36 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Core Grants |
(56,393) |
- |
- |
- |
(10,317) |
- |
- |
(66,710) |
- |
- |
- |
8,966 |
- |
- |
(57,744) |
- |
(715) |
- |
- |
(58,459) |
|
|
|
|
|
||||||||||||||||
Total Funding |
(333,561) |
- |
- |
- |
(19,195) |
- |
- |
(352,756) |
- |
16,000 |
- |
2,017 |
- |
- |
(334,739) |
- |
(715) |
- |
(8,948) |
(344,402) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Budget Gap (excluding use of Reserves) |
8,999 |
|
|
|
|
|
|
1,740 |
|
|
|
|
|
|
12,710 |
|
|
|
|
5,684 |
|
|
|
|
|
||||||||||||||||
General Fund Reserve Contribution / Drawdown (+/-) |
(8,999) |
|
|
|
|
|
|
(1,740) |
|
|
|
|
|
|
|
|
|
|
|
|
Appendix a
LONDON BOROUGH OF TOWER HAMLETS
COUNCIL 19TH FEBRUARY 2020 COUNCIL TAX RESOLUTION
1. That the revenue estimates for 2020-21 be approved.
2. That it be noted that, at its meeting on 8th January 2020, Cabinet agreed 102,266 as its Council Tax base for the year 2020-21 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)]
3. That the following amounts be now calculated by the council for the year 2020-21 in accordance with Section 31 to 36 of the Local Government Finance Act 1992 as amended and the Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2011:
(a) |
£1,247,483,325 |
Being the aggregate of the amounts which the council estimates for the items set out in Section 31A(2) of The Act. [Gross Expenditure] |
(b) |
£1,139,045,572 |
Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of The Act. [Gross Income] |
(c) |
£108,437,753 |
Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A(4) of The Act, as its council tax requirement for the year. (Item R in the formula in Section 31B of The Act). [Council Tax Requirement] |
(d) |
£1,060.35 |
Being the amount at 3(c) above (Item R), all divided by Item T (2 above), calculated by the Council, in accordance with Section 31B(1) of The Act, as the basic amount of its Council Tax for the year. [Council Tax] |
(e) |
|
VALUATION BAND |
LBTH £ |
|
Being the amount given by multiplying the amount at 3(d) above by the number which, in the proportion set out in Section 5(1) of The Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of The Act, as the amount to be taken into account for the year in respect of categories of dwellings listed in different valuation bands. |
|
|
A |
706.90 |
|
|
|
|
B |
824.72 |
|
|
|
|
C |
942.53 |
|
|
|
|
D |
1060.35 |
|
|
|
|
E |
1295.98 |
|
|
|
|
F |
1531.62 |
|
|
|
|
G |
1767.25 |
|
|
|
|
H |
2120.70 |
|
APPENDIX A
LONDON BOROUGH OF TOWER HAMLETS
COUNCIL 19TH FEBRUARY 2020 COUNCIL TAX RESOLUTION
4. That it be noted that for the year 2020-21 the Greater London Authority has stated the following provisional amounts in precepts issued to the council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:
VALUATION BAND |
GLA £ |
A |
221.38 |
B |
258.28 |
C |
295.17 |
D |
332.07 |
E |
405.86 |
F |
479.66 |
G |
553.45 |
H |
664.14 |
Please note that the GLA precepts will be formally approved on 24 February 2020.
5. That, having calculated the aggregate in each case of the amounts at 3(d) and 4 above, the council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2020-21 for each of the categories of dwellings shown below:
VALUATION BAND |
TOTAL COUNCIL TAX £ |
A |
928.28 |
B |
1,082.99 |
C |
1,237.70 |
D |
1,392.42 |
E |
1,701.85 |
F |
2,011.28 |
G |
2,320.70 |
H |
2,784.84 |
6. That the council hereby determines in accordance with Section 52ZB of the Local Government Finance Act 1992, that its relevant basic amount of Council Tax for 2020-21 is not excessive in accordance with the principles approved by the Secretary of State under Section 52ZC of the Local Government Finance Act 1992. As the billing authority, the council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2020-21 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK of the Local Government Finance Act 1992.
Supporting documents:
- 5 The Council’s 2020-21 Budget Report and Medium Term Financial Strategy 2020-23, item 5. PDF 249 KB
- 5.1 Annex 1 Budget Motion and Council Tax Resolution 2020-21, item 5. PDF 70 KB
- 5.2 Annex 2 Budget Report and MTFS 2020-23, item 5. PDF 640 KB
- 5.3 Annex 2 A1a MTFS Summary, item 5. PDF 27 KB
- 5.4 Annex 2 A1b MTFS Detail by Service Area, item 5. PDF 32 KB
- 5.5 Annex 2 A2 Core Spending Power, item 5. PDF 35 KB
- 5.6 Annex 2 A3 New Growth Proposals 2020-21 to 2022-23, item 5. PDF 274 KB
- 5.7 Annex 2 A4 New Savings Proposals 2020-21 to 2022-23, item 5. PDF 373 KB
- 5.8 Annex 2 A5 Reserves Policy, item 5. PDF 38 KB
- 5.9 Annex 2 A6 Projected Movement in Reserves, item 5. PDF 28 KB
- 5.10 Annex 2 A7 Housing Revenue Account (HRA) Budget Summary, item 5. PDF 28 KB
- 5.11 Annex 2 A8a Provisional Capital Programme Summary, item 5. PDF 32 KB
- 5.12 Annex 2 A8b Provisional Capital Programme, item 5. PDF 40 KB
- 5.13 Annex 2 A9 Budget Consultation 2020-21, item 5. PDF 741 KB
- 5.14 Annex 3 TMSS Investment Strategy and Capital Strategy Report for 2020-21, item 5. PDF 85 KB
- 5.15 Annex 3 App A Treasury Management Strategy Statement, item 5. PDF 144 KB
- 5.16 Annex 3 App B Investment Strategy Report, item 5. PDF 50 KB
- 5.17 Annex 3 App C Capital Strategy Report, item 5. PDF 70 KB
- 5.18 Annex 3 Apps D to H for Treasury Management Strategies, item 5. PDF 84 KB
- Conservative Budget Amendments 2020, item 5. PDF 276 KB
- Conservative Amendment Officer comments 2020, item 5. PDF 180 KB
- Cllr R Khan Budget Amendment February 2020, item 5. PDF 581 KB
- Cllr R Khan Amendment Officer comments 2020, item 5. PDF 182 KB
- Mayor's Response to the OSC Budget Report, item 5. PDF 226 KB