An amended Appendix 9 to the report was tabled. A number of amendments to the budget proposals were agreed (set out below) but these did not alter the text of the decisions at this stage.

•              The proposal to save £93k by Reducing or Stopping Sunday Idea Store opening will not be progressed.

•              The proposal to reduce the corporate match funding budget by £246k will also not be progressed.

•              And the saving of £241k from the Review Day Services for Older People will only be progressed once suitable alternative to current provision has been found for any service users affected.

DECISION

1.    To agree a General Fund Revenue Budget of £358.774m for 2016-17.

2.    To accept the proposed increase to Council tax (Band D) of 3.99% in 2016-17 and thereby agree Council Tax (Band D) at £920.85 for the new financial year.

3.    To agree to propose the items listed below for public consultation and consideration by the Overview and Scrutiny Committee in accordance with the Budget and Policy Framework. A further report will then be submitted to the next Cabinet meeting in February detailing the results of consultations and feedback from Overview and Scrutiny committee; inviting Cabinet to recommend a Budget Requirement and Council Tax for 2016-17 to Full Council.

4.    To note the following matters:

Budget Consultation

The outcome of consultation with residents and Overview and Scrutiny Committee on savings proposals as detailed in section 3.12 and Appendix 9.

Funding

The funding available for 2016-17 and the indications and forecasts for future years set out in Section 3.4.

Base Budget 2016-17

The Base Budget for 2016-17 as £350.346mas detailed in Appendix 1.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2016-17 and future years and as set out in Section 3.5 and in Appendix 3.

General Fund Revenue Budget for 2016-17 and Medium Term Financial Plan 2016-17to 2019-20

The initial budget proposal and Council Tax for 2016-17 together with the Medium Term Financial Plan set out in Appendix 1.

Savings

New savings items to be included in the budget for 2016-17 and the strategic approach for future savings to be delivered are set out in Section 3.6, Appendix 4.1 and 4.2 of the report.

Capital Programme

The capital programme to 2018-19; including the proposed revisions to the current programme as set out in section 3.10 and detailed in Appendices 8.1, 8.2 & 8.3, and the proposed refresh of the council’s capital strategy during 2016-17.

To adopt a capital estimate for Communities, Localities & Culture TFL LIP schemes (2016-17) totalling £2.487m & S106 schemes totalling £0.276m as detailed in Appendices 8.1 & 8.2.

Dedicated Schools Grant

The position with regards to the Dedicated Schools Grant as set out in Section 3.8 and Appendices 6.1 & 6.2.

Housing Revenue Account

The position with regards to the Housing Revenue Account as set out in Section 3.9 and Appendix 7.

Financial Risks: Reserves and Contingencies

The strategic budget risks and opportunities as set out in Section 3.7 and Appendix 5.2.

Reserves and Balances

New schemes being funded from general fund reserves in 2016-17.

The position in relation to reserves as set out in the report and further detailed in Appendices 5.1 & 5.3.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Interim Service Head, Finance and Procurement (B. Scarr)

Councillor David Edgar, Cabinet Member for Resources, introduced the report and tabled an amended Appendix 9. He drew Members attention to the provisional nature of some of the figures from the government which could result in further changes to the proposals. He also highlighted a number of the growth and savings proposals contained in the report and recommended some further amendments to the original draft proposals:

•              The proposal to save £93k by Reducing or Stopping Sunday Idea Store opening will not be progressed.

•              The proposal to reduce the corporate match funding budget by £246k will also not be progressed.

•              And the saving of £241k from the Review Day Services for Older People would only be progressed once suitable alternative to current provision has been found for any service users affected.

He reported that the Council had a relatively low Council Tax compared to other London Boroughs and that the government was assuming that Councils would be increasing the tax by 2% to support adult social care services. The draft budget also included proposals for a 1.99% increase on top of that although it was hoped not to have to include this additional increase in future years. Finally, he drew Members attention to sections of the report on the reserves and capital projects as well as potential risks around reductions in the new homes bonus and funding for schools.

The Mayor thanked Councillor David Edgar and officers for the report. He highlighted that the budget was still a work in progress in particular as he had only been Mayor for six months. He noted that some of the savings targets were ambitious but there were significant cuts that were required and so there would have to be a continual review of budgets.

Particular issues he would continue to monitor included:

• Whether early years services savings negatively impacted on those services.
• Potential growth required to improve street cleaning.
• The impact of benefit changes and welfare reform.

It was noted that the draft budget would be considered by the Overview and Scrutiny Committee meeting on 18 January 2016. 

During discussion Members noted the need to monitor the savings proposals that were being made in partnership with the East London NHS Trust and also that the proposed Council Tax increase to cover Social Care was not expected to fully cover the pressures on those services.

The Mayor accepted the amendments proposed by Councillor David Edgar, and subject to those, he agreed the recommendations as set out in the report.

RESOLVED

1.    Subject to the above amendments, to agree a General Fund Revenue Budget of £358.774m for 2016-17.

2.    To accept the proposed increase to Council tax (Band D) of 3.99% in 2016-17 and thereby agree Council Tax (Band D) at £920.85 for the new financial year.

3.    Subject to the above amendments, to agree to propose the items listed below for consideration by the Overview and Scrutiny Committee at a public meeting in accordance with the Budget and Policy Framework. A further report will then be submitted to the next Cabinet meeting in February including feedback from Overview and Scrutiny committee, and inviting Cabinet to recommend a Budget Requirement and Council Tax for 2016-17 to Full Council.

4.    To note the following matters:

Budget Consultation

The outcome of consultation with residents and Overview and Scrutiny Committee on savings proposals as detailed in section 3.12 and Appendix 9.

Funding

The funding available for 2016-17 and the indications and forecasts for future years set out in Section 3.4.

Base Budget 2016-17

The Base Budget for 2016-17 as £350.346m as detailed in Appendix 1.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2016-17 and future years and as set out in Section 3.5 and in Appendix 3.

General Fund Revenue Budget for 2016-17 and Medium Term Financial Plan 2016-17to 2019-20

The initial budget proposal and Council Tax for 2016-17 together with the Medium Term Financial Plan set out in Appendix 1.

Savings

New savings items to be included in the budget for 2016-17 and the strategic approach for future savings to be delivered are set out in Section 3.6, Appendix 4.1 and 4.2 of the report.

Capital Programme

The capital programme to 2018-19; including the proposed revisions to the current programme as set out in section 3.10 and detailed in Appendices 8.1, 8.2 & 8.3, and the proposed refresh of the council’s capital strategy during 2016-17.

To adopt a capital estimate for Communities, Localities & Culture TFL LIP schemes (2016-17) totalling £2.487m & S106 schemes totalling £0.276m as detailed in Appendices 8.1 & 8.2.

Dedicated Schools Grant

The position with regards to the Dedicated Schools Grant as set out in Section 3.8 and Appendices 6.1 & 6.2.

Housing Revenue Account

The position with regards to the Housing Revenue Account as set out in Section 3.9 and Appendix 7.

Financial Risks: Reserves and Contingencies

The strategic budget risks and opportunities as set out in Section 3.7 and Appendix 5.2.

Reserves and Balances

New schemes being funded from general fund reserves in 2016-17.

The position in relation to reserves as set out in the report and further detailed in Appendices 5.1 & 5.3.