Agenda item
General Fund Capital and Revenue Budget and Medium Term Financial Plan 2013/14-2015/16 (Revised Proposals)
- Meeting of Extraordinary Meeting, Overview & Scrutiny Committee, Monday, 18th February, 2013 7.00 p.m. (Item 3.1)
- View the background to item 3.1
To consider the revised proposals for General Fund, Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 - 2015/16 (CAB 075/123) in accordance with the Council’s Budget and Policy Framework.
Members are advised that the initial report and appendices concerning this item have been previously circulated to all Members as Cabinet Agenda 13 February 2013 “Item 10.2”.
Papers included in this agenda are:
· The tabled Cabinet amendments concerning General Fund, Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 - 2015/16.
· The decision of the Mayor in Cabinet at the meeting held on 13 February 2013 concerning General Fund, Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 - 2015/16
Minutes:
The Committee considered the revised proposals for General Fund, Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 – 2015/15 in accordance with the Council’s Budget and Policy Framework. In this connection, the Committee received papers comprising:
- The tabled Cabinet amendments concerning General Fund, Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 – 2015/16.
- The decision of the Mayor in Cabinet at the meeting held on 13 February 2013 concerning General Fund, Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 – 2015/16.
Financial implications
At the request of the Chair, Councillor Alibor Choudhury (Cabinet Member for Resources) introduced a summary of the revised proposals in the Mayor’s amended recommendations as indicated in the table shown below.
In response to concerns expressed by the Chair, Councillor Choudhury indicated that reserves had been allocated to future years to reduce budget gaps and ensure that deficits were not a large as those incurred by other local authorities. Financial planning was ongoing for future years and a team of Officers was engaged in identifying further areas to reduce the budget gap.
The Chair expressed concerns relating to management of the vacancies policy, particularly regarding possible effects on the social care services. Councillor Choudhury stated that care would be taken to ensure that front line services were not affected.
The Committee raised queries with regard to the proposed spending allocations as follows:
Boroughwide Deep Clean
Members made the point that funding had been taken from this service in previous years and there was some surprise that the proposed allocation was considered necessary, in view of claims that Tower Hamlets was a clean Borough. Councillor Choudhury undertook to provide further written comments to the Committee.
Bursary
Very strong concerns were expressed regarding:
· the need for fairness in carrying out assessments for and allocations of bursary payments;
· the criteria for any means test that would be used; the need to ensure that students whose parents were just above the benefits range would not be excluded and;
· how many Tower Hamlets students gained university places each year and whether the proposal was aimed at encouraging more students to secure places at university or reducing drop-out rates of existing university students.
Councillor Choudhury undertook to provide further written comments to the Committee.
THEOs
Members asked whether funding might best be allocated to securing more Police Officers and whether the Metropolitan Police had been approached with this in mind under the existing arrangements. Councillor Choudhury undertook to provide written comments to the Committee.
The Chair raised concerns that the SNT was hugely vulnerable in the face of cuts being made by the Metropolitan Police to service hours and counter facilities. She also queried whether it was appropriate to consider directing funding towards an organisation that appeared to be in a period of instability and flawed working.
Burial Grounds
Members expressed concerns relating to:
· the locations of the two sites under consideration;
· whether they would be for the use of all Tower Hamlets residents;
· how many plots would be provided;
· how long the sites would be considered operational;
· the likely revenue implications for managing the sites.
Councillor Choudhury stated that negotiations were underway and he was reluctant to compromise commercial confidentiality. However, he would provide written comments to the Committee.
Free School Meals
Members made the point that this provision needed to be made a priority to ensure continuation of the project, after the initial two year proposal under public health funding, for Reception and Year 1 pupils.
Additional Investment in Faith Buildings
The Chair asked that guidance be provided on arrangements for the assessment of how services would be delivered to the community and of criteria for heritage protection that were to be taken into account when considering the provision of funding for the Faith Buildings Initiative.
Councillor Choudhury undertook to provide further written comments to the Committee.
Chair’s Comments
With a significant budget black hole opening up in the Council’s own medium term financial projections, and at a time when all local authorities are facing major cuts from government, the committee was concerned about the viability of a new set of spending proposals. The committee was also concerned that these proposals were published late, after the main budget scrutiny process, leaving limited time for scrutiny questions to be answered. The committee is still waiting for important information, without which neither we nor full council should be expected to make decisions.
Of particular concern was:
- the lack of information about eligibility and purpose of the bursary for university students
- the lack of information about the burial site, with £3 million being committed without any information about how many burial plots will be provided and at what cost to families
- the lack of information about criteria for eligibility of the faith buildings grant, with assertions about the grant being for improving buildings for community use and safeguarding heritage, with no evidence provided for those assertions
- lack of clarity on the objectives for the new THEOs.
RESOLVED
That the above comments of the Committee concerning the revised budget proposals be referred to Mayor Rahman and then to Council.
Supporting documents:
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3.1a Cabinet 13th February amendment Report, item 3.1
PDF 68 KB
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3.1b Cabinet 13th February Amendment Appendix - Accelerated delivery Proformas- PDF final (2), item 3.1
PDF 281 KB
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3.2 Cabinet Meeting 13th February 2013 Decision - Item 10.2, item 3.1
PDF 77 KB