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Agenda item

BUDGET AND COUNCIL TAX 2017/18

To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax for 2017/18.

Minutes:

Mayor John Biggs moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor David Edgar seconded the proposals. It was noted that the covering report for the February Cabinet meeting was circulated in Members as an addendum.

Three amendments were moved as follows:

(i) Amendment proposed by Councillor Ohid Ahmed and seconded by Councillor Oliur Rahman

(ii) Amendment proposed by Councillor Andrew Wood and seconded by Councillor Chris Chapman

(iii)Amendment proposed by Councillor Rabina Khan and seconded by Councillor Abdul Asad. [Note – a minor amendment was noted to the tabled paper]

Following debate, the amendment proposed by Councillor Ohid Ahmed was put to a recorded vote and was defeated.

Councillors recorded their votes on the amendment as follows:-

Councillor	For	Against	Abstain	Absent
Shafi Ahmed			x
Ohid Ahmed	x
Rajib Ahmed		x
Suluk Ahmed	x
Khales Uddin Ahmed		x
Sabina Akhtar		x
Mahbub Alam	x
Shah Alam			x
Amina Ali		x
Abdul Asad			x
Craig Aston		x
Asma Begum		x
Rachel Blake		x
Chris Chapman		x
Dave Chesterton		x
Gulam Kibria Choudhury				x
Andrew Cregan		x
Julia Dockerill		x
David Edgar		x
Marc Francis		x
Amy Whitelock Gibbs		x
Peter Golds		x
Shafiqul Haque				x
Clare Harrisson		x
Danny Hassell		x
Sirajul Islam		x
Denise Jones		x
Aminur Khan			x
Rabina Khan			x
Shiria Khatun		x
Abjol Miah			x
Ayas Miah		x
Harun Miah	x
Mohammed Maium Miah	x
Mohammed Mufti Miah			x
Mohammed Abdul Mukit		x
Muhammed Ansar Mustaquim	x
Joshua Peck		x
John Pierce		x
Oliur Rahman	x
Gulam Robbani	x
Candida Ronald		x
Rachael Saunders		x
Helal Uddin		x
Andrew Wood		x
Total Votes	8	28	7

The amendment proposed by Councillor Andrew Wood was put to a recorded vote and was defeated.

Councillors recorded their votes on the amendment as follows:-

Councillor	For	Against	Abstain	Absent
Shafi Ahmed		x
Ohid Ahmed		x
Rajib Ahmed		x
Suluk Ahmed		x
Khales Uddin Ahmed		x
Sabina Akhtar		x
Mahbub Alam		x
Shah Alam		x
Amina Ali		x
Abdul Asad		x
Craig Aston	x
Asma Begum		x
Rachel Blake		x
Chris Chapman	x
Dave Chesterton		x
Gulam Kibria Choudhury				x
Andrew Cregan		x
Julia Dockerill	x
David Edgar		x
Marc Francis		x
Amy Whitelock Gibbs		x
Peter Golds	x
Shafiqul Haque				x
Clare Harrisson		x
Danny Hassell		x
Sirajul Islam		x
Denise Jones		x
Aminur Khan		x
Rabina Khan		x
Shiria Khatun		x
Abjol Miah		x
Ayas Miah		x
Harun Miah		x
Mohammed Maium Miah		x
Mohammed Mufti Miah		x
Mohammed Abdul Mukit		x
Muhammed Ansar Mustaquim		x
Joshua Peck		x
John Pierce		x
Oliur Rahman		x
Gulam Robbani		x
Candida Ronald		x
Rachael Saunders		x
Helal Uddin		x
Andrew Wood	x
Total Votes	5	38	0

The amendment proposed by Councillor Rabina Khan was put to a recorded vote and was defeated.

Councillors recorded their votes on the amendment as follows:-

Councillor	For	Against	Abstain	Absent
Shafi Ahmed	x
Ohid Ahmed			x
Rajib Ahmed		x
Suluk Ahmed			x
Khales Uddin Ahmed		x
Sabina Akhtar		x
Mahbub Alam			x
Shah Alam	x
Amina Ali		x
Abdul Asad	x
Craig Aston		x
Asma Begum		x
Rachel Blake		x
Chris Chapman		x
Dave Chesterton		x
Gulam Kibria Choudhury				x
Andrew Cregan		x
Julia Dockerill		x
David Edgar		x
Marc Francis		x
Amy Whitelock Gibbs		x
Peter Golds		x
Shafiqul Haque				x
Clare Harrisson		x
Danny Hassell		x
Sirajul Islam		x
Denise Jones		x
Aminur Khan	x
Rabina Khan	x
Shiria Khatun		x
Abjol Miah			x
Ayas Miah		x
Harun Miah			x
Mohammed Maium Miah			x
Mohammed Mufti Miah			x
Mohammed Abdul Mukit		x
Muhammed Ansar Mustaquim			x
Joshua Peck		x
John Pierce		x
Oliur Rahman			x
Gulam Robbani			x
Candida Ronald		x
Rachael Saunders		x
Helal Uddin		x
Andrew Wood		x
Total Votes	5	28	10

The substantive budget proposals were then put to a recorded vote and were agreed.

Councillors recorded their votes on the budget proposals as follows:-

Councillor	For	Against	Abstain	Absent
Shafi Ahmed		x
Ohid Ahmed		x
Rajib Ahmed	x
Suluk Ahmed		x
Khales Uddin Ahmed	x
Sabina Akhtar	x
Mahbub Alam		x
Shah Alam		x
Amina Ali	x
Abdul Asad		x
Craig Aston		x
Asma Begum	x
Rachel Blake	x
Chris Chapman		x
Dave Chesterton	x
Gulam Kibria Choudhury				x
Andrew Cregan			x
Julia Dockerill		x
David Edgar	x
Marc Francis	x
Amy Whitelock Gibbs	x
Peter Golds		x
Shafiqul Haque				x
Clare Harrisson	x
Danny Hassell	x
Sirajul Islam	x
Denise Jones	x
Aminur Khan		x
Rabina Khan		x
Shiria Khatun	x
Abjol Miah	x
Ayas Miah	x
Harun Miah		x
Mohammed Maium Miah		x
Mohammed Mufti Miah	x
Mohammed Abdul Mukit	x
Muhammed Ansar Mustaquim		x
Joshua Peck	x
John Pierce	x
Oliur Rahman		x
Gulam Robbani		x
Candida Ronald	x
Rachael Saunders	x
Helal Uddin	x
Andrew Wood		x
Total Votes	24	18	1

(Note: Councillor Shafiqul Haque was not present for the voting on the amendments or the substantial budget proposals)

Extension of time limit for the meeting

During the consideration of the budget proposals, Councillor Oliur Rahman moved, and Councillor Peter Golds seconded, a procedural motion that “under Procedure Rule 15.11.7 the meeting be extended for up to an additional 30 minutes to enable the consideration of the remaining items of business on the agenda. The procedural motion was put to the vote and was agreed.

RESOLVED:

That Council: -

General Fund Revenue Budget and Council Tax Requirement 2017-18

1. To agree a General Fund revenue budget of £338.896m and a total Council Tax Requirement for Tower Hamlets in 2017-18 of £85.836m as set out in the table below.

	Total	Savings		Growth		Adjustments	Total
Service Area	2016-17	Approved	New	Approved	New		2017-18
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Health, Adults & Community	93,150	(241)	(3,012)	3,403	419	-	93,719
Public Health	35,314	-	(678)	(1,354)	-	1,553	34,835
Children Services	97,641	-	(2,193)	419	5,680	120	101,667
Place	69,438	-	(1,944)	658	610	1,797	70,559
Governance	9,731	-	(4)	-	563	-	10,290
Resources	17,146	-	(4,665)	250	580	1,667	14,978
Net Service Costs	322,421	(241)	(12,496)	3,376	7,852	5,137	326,049

Other Net Costs
Capital Charges	7,854	-	-	(419)	-	-	7,435
Levies	1,742	-	-	-	-	-	1,742
Pensions	18,960	-	(1,000)	1,500	(1,500)	-	17,960
Other Corporate Costs	7,868	241	(6,900)	(4,815)	2,148	(21,123)	(22,581)
Total Other Net Costs	36,424	241	(7,900)	(3,734)	648	(21,123)	4,556

Inflation	3,141	-	-	5,500	(350)	-	8,291

Total Financing Requirement	361,985	-	(20,396)	5,142	8,150	(15,986)	338,896

Funding
Government Funding	(68,665)	-	-	14,707	-	-	(53,958)
Retained Business Rates	(125,339)	-	(20,318)	14,350	-	-	(131,307)
Council Tax	(76,884)	-	(8,953)	-	-	-	(85,837)
Collection Fund Surplus
- Council Tax	(1,278)	-	(1,000)	1,278	-	-	(1,000)
- Retained Business Rates	(2,597)	-	-	2,597	-	-	-
Core Grants
- Public Health Grant	(36,883)	-	-	909	-	-	(35,974)
- NHB	(21,617)	-	(5,000)	7,287	-	-	(19,330)
- Education Services Grant	(3,799)	-	-	1,027	-	-	(2,772)
- Improved Better Care fund	-	-	(1,640)	-	-	-	(1,640)
- Adult Social Care Support Grant	-	-	(1,500)	-	-	-	(1,500)
- Local Lead Flood	-	-	(32)	-	-	-	(32)
Reserves
- General Fund (Corporate)	(2,080)	-	-	-	-	(4,014)	(6,094)
- Earmarked (Directorate)	-	-	-	-	-	-	-
- General Fund (Smoothing)	-	-	-	-	-	-	-
Total Financing	(339,141)	-	(38,444)	42,155	-	(4,014)	(339,443)

2. To agree a Council Tax for Tower Hamlets in 2017-18 of £966.80 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 3% increase in respect of the Adult Social Care ‘Precept’ announced by the government during its recent budget announcements.

BAND	PROPERTY VALUE		RATIO TO BAND D	LBTH COUNCIL TAX FOR EACH BAND £
BAND	FROM £	TO £	RATIO TO BAND D	LBTH COUNCIL TAX FOR EACH BAND £
A	0	£40,000	6/9	644.54
B	40,001	52,000	7/9	751.96
C	52,001	68,000	8/9	859.38
D	68,001	88,000	9/9	966.80
E	88,001	120,000	11/9	1,181.65
F	120,001	160,000	13/9	1,396.49
G	160,001	320,000	15/9	1,611.34
H	320,001	And over	18/9	1,933.61

3. To agree that for the London Borough of Tower Hamlets in 2017-18:-

(a) The Council Tax for Band D taxpayers, before any discounts, and including the GLA precept, shall be £1,246.82 as shown below: -.

(Band D, No Discounts)

LBTH

966.80

GLA

280.02

Total

1,246.82

(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 £
BAND	FROM £	TO £	RATIO TO BAND D	LBTH £	GLA £	TOTAL £
A	0	40,000	6/9	644.54	186.68	831.22
B	40,001	52,000	7/9	751.96	217.79	969.75
C	52,001	68,000	8/9	859.38	248.91	1,108.29
D	68,001	88,000	9/9	966.80	280.02	1,246.82
E	88,001	120,000	11/9	1,181.65	342.25	1,523.89
F	120,001	160,000	13/9	1,396.49	404.47	1,800.97
G	160,001	320,000	15/9	1,611.34	466.70	2,078.04
H	320,001	And over	18/9	1,933.61	560.04	2,493.65

4. To approve the statutory calculations of this Authority’s Council Tax Requirement in 2017-18, detailed in Appendix A to the motion, undertaken by the Corporate Director Resources (Chief Financial Officer) in accordance with the requirements of Sections 31 to 36 of the Local Government Finance Act 1992.

5. To note the Capital Strategy and to the intention to undertake a comprehensive review of the Council’s approach to the prioritisation and governance of capital expenditure based on the outcomes based budgeting methodology already adopted for the revenue elements of the MTFS.

6. To approve the Treasury Management Strategy Statement, the Annual Investment Strategy and the Minimum Revenue Provision Policy Statement as presented to Cabinet on 7 February 2017.

7. To approve the General Fund Capital and Revenue Budgets and Medium Term Financial Plan 2017-2020 as recommended by the Mayor in Cabinet on 7 February as set out in the report of the Mayor in Cabinet and summarised in the tables below.

Summary of Medium Term Financial Plan 2016-2020

	2016-17	2017-18	2018-19	2019-20
	£'000	£'000	£'000	£'000
Net Service Costs	350,346	361,985	338,895	329,415
Growth
- Approved	27,563	(16,344)	3,506	3,174
- New	-	8,500	(1,757)	-
Savings
- Approved	(4,000)	-	-	-
- New	(17,423)	(20,396)	(15,460)	(15,773)
Inflation	5,500	5,150	4,231	4,440

Total Funding Requirement	361,985	338,896	329,415	321,256

Government Funding (RSG)	(68,665)	(53,958)	(43,795)	(33,281)
Retained Business Rates	(125,339)	(131,307)	(135,194)	(139,555)
Council Tax	(76,884)	(85,837)	(90,180)	(93,814)
Collection Fund Surplus
- Council Tax	(1,278)	(1,000)	-	-
- Retained Business Rates	(2,597)	-	-	-
Core Grants	(62,299)	(61,248)	(48,807)	(51,378)

Earmarked Reserves (Mayoral priority)	(2,080)	(6,094)	(5,980)	(5,384)

Total Funding	(339,141)	(339,443)	(323,956)	(323,413)

Budget Gap (excluding use of Reserves)	22,845	(548)	5,459	(2,157)
Unallocated Contingencies	-	-	-	-
Budgeted Reserve Contribution GF smoothing (Approved Feb 2016)	(22,845)	-	-	-
Budgeted Reserve Contribution	-	548	(5,459)	2,157

Unfunded Gap	-	-	-	-

	31/03/2017	31/03/2018	31/03/2019	31/03/2020
Balance on General Fund Reserves (£000s)	31,100	31,648	26,189	28,346

Detailed Analysis of the Medium Term Financial Plan by Service Area 2016-17 to 2019-20

	Total	Savings		Growth		Adjustments	Total	Savings		Growth		Adjustments	Total	Savings		Growth		Adjustments	Total
		Approved	New	Approved	New			Approved	New	Approved	New			Approved	New	Approved	New
Service	2016-17						2017-18						2018-19						2019-20
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000

Health, Adults & Community	93,150	(241)	(3,012)	3,403	419	-	93,719	-	(1,985)	2,057	-	-	93,791	-	(2,245)	-	2,125	-	93,672
Public Health	35,314	-	(678)	(1,354)	-	1,553	34,835	-	(749)	(581)	-	-	33,505	-	(411)	(730)	-	-	32,364
Children Services	97,641	-	(2,193)	419	5,680	120	101,667	-	(2,012)	-	(135)	-	99,519	-	(2,967)	-	(414)	(370)	95,768
Place	69,438	-	(1,944)	658	610	1,797	70,559	-	(1,485)	714	(136)	(114)	69,538	-	(2,921)	-	577	(225)	66,969
Governance	9,731	-	(4)	-	563	-	10,290	-	(4)	-	-	-	10,286	-	(4)	-	-	-	10,282
Resources	17,346	-	(4,665)	250	580	1,667	15,178	-	(3,275)	-	(252)	-	11,651	-	(2,525)	-	-	(1)	9,125
Net Service Costs	322,621	(241)	(12,496)	3,376	7,852	5,137	326,249	-	(9,510)	2,190	(523)	(114)	318,291	-	(11,074)	(730)	2,288	(596)	308,180

Other Net Costs
Capital Charges	7,854	-	-	(419)	-	-	7,435	-	-	-	-	-	7,435	-	-	-	-	-	7,435
Levies	1,742	-	-	-	-	-	1,742	-	-	-	-	-	1,742	-	-	-	-	-	1,742
Pensions	18,960	-	(1,000)	1,500	(1,500)	-	17,960	-	-	1,000	(1,000)	-	17,960	-	-	1,000	(1,000)	-	17,960
Other Corporate Costs	7,668	241	(6,900)	(4,815)	2,148	(21,123)	(22,781)	-	(5,950)	430	(234)	-	(28,535)	-	(4,700)	3,500	(1,288)	-	(31,023)

Total Other Net Costs	36,224	241	(7,900)	(3,734)	648	(21,123)	4,356	-	(5,950)	1,430	(1,234)	-	(1,398)	-	(4,700)	4,500	(2,288)	-	(3,886)

Inflation	3,141	-	-	5,500	(350)		8,291	-	-	5,500	(1,269)	-	12,522	-	-	5,500	(1,060)	-	16,962

Total Financing Requirement	361,985	-	(20,396)	5,142	8,150	(15,986)	338,896	-	(15,460)	9,120	(3,026)	(114)	329,415	-	(15,774)	9,270	(1,060)	(596)	321,256

Funding

Government Funding (RSG)	(68,665)	-	-	14,707	-	-	(53,958)	-	-	10,163	-	-	(43,795)	-	-	10,514	-	-	(33,281)
Retained Business Rates	(125,339)	-	(20,318)	14,350	-	-	(131,307)	-	(4,100)	214	-	-	(135,194)	-	(4,600)	238	-	-	(139,555)
Council Tax	(76,884)	-	(8,953)	-	-	-	(85,837)	-	(4,343)	-	-	-	(90,180)	-	(3,634)	-	-	-	(93,814)
Collection Fund Surplus		-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- Council Tax	(1,278)	-	(1,000)	1,278	-	-	(1,000)	-	-	1,000	-	-	-	-	-	-	-	-	-
- Retained Business Rates	(2,597)	-	-	2,597	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Core Grants
- Public Health Grant	(36,883)	-	-	909	-	-	(35,974)	-	-	581	-	-	(35,393)	-	-	730	-	-	(34,663)
- NHB	(21,617)	-	(5,000)	7,287	-	-	(19,330)	-	(5,000)	20,407	-	-	(3,923)	-	(5,000)	5,741	-	-	(3,182)
- Education Services Grant	(3,799)	-	-	1,027	-	-	(2,772)	-	-	1,026	-	-	(1,746)	-	-	1,026	-	-	(720)
- Improved Better Care fund	-	-	(1,640)	-	-	-	(1,640)	-	(6,071)	-	-	-	(7,711)	-	(5,066)	-	-	-	(12,777)
- Adult Social Care Support Grant	-	-	(1,500)	-	-	-	(1,500)	-	-	1,500	-	-	-	-	-	-	-	-	-
- Local Lead Flood	-	-	(32)	-	-	-	(32)	-	(2)	-	-	-	(34)	-	(2)	-	-	-	(36)

Reserves
- General Fund (Corporate)	(2,080)	-	-	-	-	(4,014)	(6,094)	-	-	-	-	114	(5,980)	-	-	-	-	596	(5,384)
- Earmarked (Directorate)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- General Fund (Smoothing)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Total Financing	(339,141)	-	(38,444)	42,155	-	(4,014)	(339,443)	-	(19,517)	34,891	-	114	(323,956)	-	(18,302)	18,249	-	596	(323,413)

APPENDIX A

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 22^nd FEBRUARY 2017

BUDGET & COUNCIL TAX STATUTORY CALCULATIONS

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

1. That the revenue estimates for 2017-18 be approved.

2. That it be noted that, at its meeting on 10^th January 2017, Cabinet calculated 88,784 as its Council Tax base for the year 2017-18 [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 2017-18 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)	£1,289,163,591	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)	£1,203,326,974	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)	£85,836,618	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)	£966.80	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]

APPENDIX A

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 22^nd FEBRUARY 2017

BUDGET & COUNCIL TAX STATUTORY CALCULATIONS

(e)	VALAUTION BAND	LBTH £
	A	644.54
	B	751.96
	C	859.38
	D	966.80
	E	1,181.65
	F	1,396.49
	G	1,611.34
	H	1,933.61

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.

APPENDIX A

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 22^nd FEBRUARY 2017

BUDGET & COUNCIL TAX STATUTORY CALCULATIONS

4. That it be noted that for the year 2017-18 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 dwellings shown below:-

VALUATION BAND	GLA £
A	186.68
B	217.79
C	248.91
D	280.02
E	342.25
F	404.47
G	466.70
H	560.04

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 2017-18 for each of the categories of dwellings shown below:-

VALUATION BAND	TOTAL COUNCIL TAX £
A	831.22
B	969.75
C	1,108.29
D	1,246.82
E	1,523.89
F	1,800.97
G	2,078.04
H	2,493.65

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 2017-18 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 basic amount of Council Tax for 2017-18 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

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Agenda item

BUDGET AND COUNCIL TAX 2017/18