To consider the revised proposals of the Mayor and Executive in relation to the Council’s Budget and Council Tax 2015/16.

The first Budget Council Meeting on 25^th February 2015 did not agree the Mayor’s budget proposals.  The Council agreed an amendment moved by Councillor Rachael Saunders and seconded by Councillor Ayas Miah containing a number of proposed changes to the Mayor’s budget.  In accordance with the requirements of the Constitution and statutory provisions, the Mayor has been formally advised of the Council’s objections to his proposals and within a period of five working days must reconsider those proposals in accordance with the Council’s objections and submit his revised

budget proposals to the second Budget Council Meeting.  Those revised proposals may at the Mayor’s discretion include some or all elements of the amendment agreed by the Council at the first budget meeting. 

The attached report sets out the amendment agreed by the Council on 25^th February 2015.  The Mayor’s revised budget proposals will be circulated to Councillors as soon as they are available. 

Officer advice on the Mayor’s budget proposals and on each element of the agreed budget amendment has been received by Members in the agenda for the first Budget Council Meeting and papers tabled at that meeting.  Members are requested to bring those documents with them to this meeting.

The Mayor’s response to the budget amendment agreed by the Council at the Budget Meeting on 25^th February 2015 was tabled.

Mayor Lutfur Rahman introduced, and Councillor Alibor Choudhury moved, the reconsidered budget proposals of the Mayor and Executive as set out in the tabled report. Councillor Oliur Rahman seconded the proposals. The Mayor stated that he and the Executive were unable to accept any part of the amendment agreed by the Council on 25^th February 2015, with the reasons set out in the tabled report.

Councillor Rachael Saunders moved and Councillor Ayas Miah seconded the budget amendment as agreed at the meeting on 25^th February 2015 and as set out in the agenda.

Following debate a recorded vote was conducted on the amendment. The amendment did not achieve the necessary two-thirds majority of those present and voting as required by regulations, with 22 Members voting in favour, 18 against and 5 abstentions as set out below:-. 

The Mayor and Executive’s budget proposals were therefore adopted. Accordingly it was:-

RESOLVED

General Fund Revenue Budget and Council Tax Requirement 2015/16

1.         To agree a General Fund revenue budget of £291.362m and a total Council Tax Requirement for Tower Hamlets in 2015/16 of £69,814,540 as set out in the table below.

2.         To agree a Council Tax for Tower Hamlets in 2015/16 of £885.52 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:-

3.         To agree that for the London Borough of Tower Hamlets in 2015/16:-

(a)        The Council Tax for Band D taxpayers, before any discounts, and including the GLA precept, shall be £1,180.52 as shown below: -.

(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: -

4.         To approve the statutory calculations of this Authority’s Council Tax Requirement in 2015/16, detailed in Appendix A to this minute, undertaken by the Chief Financial Officer in accordance with the requirements of Sections 31 to 36 of the Local Government Finance Act 1992.

5.         To approve the Treasury Management Strategy Statement, the Annual Investment Strategy and the Minimum Revenue Provision Policy Statement as presented to Cabinet on 4^th February 2015.

6.         To approve the General Fund Capital and Revenue Budgets and Medium Term Financial Plan 2015-2018 as amended by the alternative options as agreed by the Mayor in Cabinet on 4^th February and as set out in the report of the Mayor in Cabinet and summarised in the tables below.

APPENDIX A – BUDGET AND COUNCIL TAX STATUTORY CALCULATIONS

SETTING THE AMOUNT OF COUNCIL TAX FOR THE COUNCIL'S AREA

1.            That the revenue estimates for 2015/2016 be approved.

2.         That it be noted that, at its meeting on 7^th January 2015, Cabinet calculated 78,840 as its Council Tax base for the year 2015/2016 [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 2015/2016 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:

4.         That it be noted that for the year 2015/16 the Greater London Authority has stated the following 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 the dwellings shown below:-

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 2015/16 for each of the categories of dwellings shown below:-

6.         That it be noted that new government regulation now requires a local authority to conduct a referendum where if compared with the previous year, they set council tax increases that are “excessive”. Under current legislation and in accordance with principles approved under Section 52ZB Local Government Finance Act 1992, the Council tax set by the London Borough of Tower Hamlets for 2015/16 is not deemed to be excessive.