[Note – Agenda Items 10.1 (Housing Revenue Account), 10.2 (General Fund Capital and Revenue Budgets) and 10.3 (Treasury Management Strategy Statement) were considered together and the combined minute is presented here. The approved recommendations are listed under the relevant items]

Councillor Alibor Choudhury, Cabinet Member for Resources, introduced the reports. He highlighted the challenges the Council faced in light of the significant funding cuts being made by central government. In particular he highlighted a number of points including:

·         An additional report in relation to item 10.2 (General Fund and Capital Budgets) reporting on the final government grant allocations and that officers had done well to predict the final settlement.

·         That the 3.2% reduction in funding would feel more like 8% once population growth and inflation were accounted for.

·         Savings proposals were listed in the report to cover this reduction and action was also proposed to account for earlier savings proposals that had not been deliverable. These included cuts to back office functions, supplies, senior management, travel, ICT and generating more income.

·         It was important to try and mitigate the impact of cuts on local people and some amendments were to be proposed to mitigate the impact in some important areas.

·         There was some new funding such as a higher than expected public health grant.

Cabinet Members and other Councillors then rose to propose amendments to the budget proposals. These were tabled as a paper to Cabinet and included amendments on the following topics:

·         Additional THEOs (Tower Hamlets Enforcement Officers) and more CCTV coverage.

·         Cycling improvements.

·         Tackling potholes.

·         Exploring provision of a Multi-faith burial ground.

·         Free school meals for Reception and Year 1 pupils.

·         An additional £1 million in capital grants for the Faith Buildings scheme.

There then followed a discussion on the above amendments and the overall budget. The Mayor thanked all those who had contributed to the discussion including Overview and Scrutiny Committee Members and thanked officers for their work in developing the proposals. He agreed the recommendations to each of the reports, amended where necessary.

Resolved

Revenue

1.    To approve the draft 2013/14 Housing Revenue Account budget as set out in Appendix 1.

2.    To approve the draft 2013/14 Management Fee payable to Tower Hamlets Homes (THH) of £32.429 million as set out in Table 3 in section 9.2.

3.    Subject to 2. above, note that under the Management Agreement between the Council and THH, THH will manage delegated income budgets of £84.2 million and delegated expenditure budgets of £25.1 million on behalf of the Council in 2013/14.

4.    To note the HRA Medium Term Financial Plan (2013-16) outlined in Appendix 2.

Capital

5.    To adopt a capital estimate of £980,000 for the award of Disabled Facilities Grants, as outlined in paragraph 12.1, subject to funding being confirmed by the DCLG and the Department of Health.

6.    To adopt a capital estimate of £250,000 in respect of Private Sector Improvement Grants, including Empty Property Grants, for 2013-14, to be financed from ring-fenced resources received from the East London Renewal Partnership (paragraph 12.2).

7.    To agree to increase the capital estimate in respect of conservation works for Bethnal Green Terrace by £351,000, as outlined in paragraph 13.1.

8.    To adopt a capital estimate of £320,000 in respect of pedestrian crossing works in Whitechapel Road, as outlined in paragraph 13.2.