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Agenda item

BUDGET AND COUNCIL TAX 2019/20

To consider the proposals of the Mayor and Executive for the Council’s Budget and Council Tax 2019/20. Please note that this report includes the General Fund Revenue and Capital Budget and Medium Term Financial Plan 2019/20 – 2021/22, the Housing Revenue Account and the Treasury Management Strategy Statement.

Minutes:

Mayor John Biggs moved, the budget proposals of the Mayor and Executive as set out in the agenda pack. Councillor Candida Ronald seconded the proposals.

Councillor Rabina Khan proposed and Councillor Andrew Wood seconded an additional amendment without notice on the subject of providing resources for safeguarding against radicalism. In accordance with Council Procedure Rule 2.5, the Speaker adjourned the meeting at 7.40 p.m. so that officers’ advice could be sought on whether Councillor Rabina Khan’s proposed amendment could be accepted for debate. The meeting reconvened at 7.50pm.

Following the adjournment, the Monitoring Officer advised that the proposed amendment was in order. The Speaker then put the proposal that the amendment be accepted for debate to the vote. This proposal was defeated.

Councillor Puru Miah withdrew his amendment at the beginning of the debate.

Councillor Andrew Wood then moved and Councillor Peter Golds seconded an amendment

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

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

RESOLVED

That Council: -

1. Agree a General Fund revenue budget of £342.560m and a total Council Tax Requirement for Tower Hamlets in 2019-20 of £100.331m as set out in the table below.

	Total	Savings		Growth		Adjustments		Total
		Approved	New	Approved	New	Approved	New
Service	2018-19							2019-20
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Health, Adults & Community	105,862	(2,275)	(100)	2,939	121	(2,045)	-	104,503
Public Health	35,049	(411)	-	(730)	216	-	-	34,124
Children's Services	101,122	(3,036)	(481)	(414)	5,978	(4,391)	-	98,779
Place	70,086	(1,706)	(1,040)	709	3,379	(557)	-	70,872
Governance	14,227	-	(50)	-	300	-	-	14,477
Resources	16,052	(4,247)	-	-	-	(200)	-	11,605
Net Service Costs	342,399	(11,674)	(1,671)	2,504	9,994	(7,193)	-	334,360
Other Net Costs
Capital Charges	5,339	-	-	-	1,500	-	-	6,839
Levies	1,862	-	-	-	-	-	-	1,862
Pensions	12,790	-	-	-	-	-	-	12,790
Corporate Contingency	3,150	-	-	-	-	-	-	3,150
Other Corporate Costs	(24,826)	(1,500)	-	(195)	39	(474)	-	(26,955)
Total Other Net Costs	(1,685)	(1,500)	-	(195)	1,539	(474)	-	(2,314)
Inflation	3,015	-	-	6,500	1,000	-	-	10,515
Total Financing Requirement	343,730	(13,174)	(1,671)	8,809	12,533	(7,667)	-	342,560
Funding
Revenue Support Grant	(43,795)	-	-	-	10,514	-	-	(33,281)
Retained Business Rates	(137,295)	101,821	-	-	(104,081)	-	-	(139,555)
Business Rates (London Pilot)	(8,000)	-	-	-	4,000	-	-	(4,000)
Council Tax	(93,777)	-	(6,554)	-	-	-	-	(100,331)
Collection Fund Surplus		-	-	-	-	-	-	-
- Council Tax	(1,500)	-	-	-	1,500	-	-	-
- Retained Business Rates	11,357	-	-	-	(11,357)	-	-	-
Core Grants
- Public Health Grant	(35,049)	-	-	730	195	-	-	(34,124)
- NHB	(3,923)	(5,000)	-	5,741	-	-	-	(3,182)
- Strategic School Improvement Fund	(200)	-	-	-	-	-	-	(200)
- Improved Better Care Fund	(7,711)	-	(5,066)	-	-	-	-	(12,777)
- Additional Improved Better Care Fund Grant (New)	(4,196)	-	-	-	-	2,122	-	(2,074)
- Adult Social Care Support Grant	(916)	-	-	-	(3,084)	-	-	(4,000)
- Local Lead Flood	(34)	(2)	-	-	-	-	-	(36)
- Levy Returned	(1,684)	-	-	-	1,684	-	-	-
Reserves
- Earmarked (Corporate)	(13,121)	-	-	-	-	5,545	-	(7,576)
- General Fund (Smoothing)		-	(1,000)	-	-			(1,000)
Total Financing	(339,843)	96,819	(12,620)	6,471	(100,630)	7,667	-	(342,137)

2. Agree a Council Tax for Tower Hamlets in 2019-20 of £1,019.67 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 2.4% general increase on the previous year and a 1% increase in respect of the Adult Social Care ‘Precept’ announced by the government in the 2017 budget.

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	679.78
B	40,001	52,000	7/9	793.08
C	52,001	68,000	8/9	906.37
D	68,001	88,000	9/9	1,019.67
E	88,001	120,000	11/9	1,246.26
F	120,001	160,000	13/9	1,472.86
G	160,001	320,000	15/9	1,699.45
H	320,001	and over	18/9	2,039.34

3. Agree that for the London Borough of Tower Hamlets in 2019-20:-

(a) The Council Tax for Band D taxpayers, before any discounts, and including the GLA precept, shall be £1,340.18 as shown below: -.

	£ (Band D, No Discounts)
LBTH	1,019.67
GLA	320.51
Total	1,340.18

(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	679.78	213.67	893.45
B	40,001	52,000	7/9	793.08	249.29	1,042.37
C	52,001	68,000	8/9	906.37	284.90	1,191.27
D	68,001	88,000	9/9	1,019.67	320.51	1,340.18
E	88,001	120,000	11/9	1,246.26	391.73	1,637.99
F	120,001	160,000	13/9	1,472.86	462.96	1,935.82
G	160,001	320,000	15/9	1,699.45	534.18	2,233.63
H	320,001	and over	18/9	2,039.34	641.02	2,680.36

4 Approve the statutory calculations of this Authority’s Council Tax Requirement in 2019-20, detailed in Appendix A to the report, 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 Approve the Treasury Management Strategy Statement, the Annual Investment Strategy and the Minimum Revenue Provision Policy Statement as presented to Audit Committee on 31 January 2019.

6 Approve the General Fund Capital and Revenue Budgets and Medium Term Financial Plan 2019-2022 as amended following final settlement announcement as agreed by the Mayor in Cabinet on 30 January as set out in the attached report of the Mayor in Cabinet and summarised in the tables below.

Summary of Medium Term Financial Plan 2018-2022

	2018-19	2019-20	2020-21	2021-22
	£'000	£'000	£'000	£'000
Net Service Costs	345,913	343,730	342,560	331,154
Growth
- Previously Approved by Full Council	(1,416)	(5,358)	38	(5,445)
- New	6,796	11,533	(4,354)	6,353
Savings
- Previously Approved by Full Council	(13,560)	(13,174)	(9,030)	-
- Written off- Previously Approved by Full Council	1,256	-	-	-
- New	(1,758)	(1,671)	(5,560)	(8,159)
Inflation	6,500	7,500	7,500	6,500
Total Funding Requirement	343,730	342,560	331,154	330,403
Revenue Support Grant	(43,795)	(33,281)	(30,498)	(27,953)
Retained Business Rates	(137,295)	(139,555)	(139,555)	(139,555)
Business Rates (London Pilot)	(8,000)	(4,000)	-	-
Council Tax	(93,777)	(100,331)	(105,821)	(111,612)
Collection Fund Surplus
- Council Tax	(1,500)	-	-	-
- Retained Business Rates	11,357	-	-	-
Core Grants	(53,712)	(56,393)	(50,283)	(50,283)
Earmarked Reserves	(13,121)	(8,576)	(6,445)	(1,000)
Total Funding	(339,843)	(342,137)	(332,603)	(330,403)
Budget Gap (excludes use of Reserves)	3,887	423	(1,449)	-
Budgeted GF Reserve Contribution/ Drawdown (+/-)	(3,887)	(423)	1,449	-
UNFUNDED GAP	-	-	-	-
	31/03/2019	31/03/2020	31/03/2021	31/03/2022
Balance on General Fund Reserves (£000s)	29,371	28,948	30,397	30,397

Detailed Analysis of the Medium Term Financial Plan by Service Area 2018-19 to 2021-22

	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		Approved	New	Approved	New	Approved	New
Service	2018-19							2019-20							2020-21							2021-22
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Health, Adults & Community	105,862	(2,275)	(100)	2,939	121	(2,045)	-	104,503	(1,000)	(190)	3,499	-	(2,071)	-	104,741	-	(1,700)	-	4,375	(477)	-	106,940
Public Health	35,049	(411)	-	(730)	216	-	-	34,124	-	-	-	-	-	-	34,124	-	-	-	-	-	-	34,124
Children's Services	101,122	(3,036)	(481)	(414)	5,978	(4,391)	-	98,779	(650)	(1,150)	-	(2,032)	(120)	-	94,827	-	(300)	-	1,604	(2,231)	-	93,900
Place	70,086	(1,706)	(1,040)	709	3,379	(557)	-	70,872	(580)	(2,500)	744	(2,322)	(1,715)	-	64,499	-	(329)	-	374	(2,522)	-	62,021
Governance	14,227	-	(50)	-	300	-	-	14,477	-	-	-	-	-	-	14,477	-	-	-	-	(100)	-	14,377
Resources	16,052	(4,247)	-	-	-	(200)	-	11,605	(1,900)	(220)	-	-	(300)	-	9,185	-	(200)	-	-	(115)	-	8,870
Net Service Costs	342,399	(11,674)	(1,671)	2,504	9,994	(7,193)	-	334,360	(4,130)	(4,060)	4,243	(4,354)	(4,205)	-	321,853	-	(2,529)	-	6,353	(5,445)	-	320,232
Other Net Costs
Capital Charges	5,339	-	-	-	1,500	-	-	6,839	-	-	-	-	-	-	6,839	-	-	-	-	-	-	6,839
Levies	1,862	-	-	-	-	-	-	1,862	-	-	-	-	-	-	1,862	-	-	-	-	-	-	1,862
Pensions	12,790	-	-	-	-	-	-	12,790	-	-	-	-	-	-	12,790	-	-	-	-	-	-	12,790
Corporate Contingency	3,150	-	-	-	-	-	-	3,150	-	-	-	-	-	-	3,150	-	-	-	-	-	-	3,150
Other Corporate Costs	(24,826)	(1,500)	-	(195)	39	(474)	-	(26,955)	(4,900)	(1,500)	-	-	-	-	(33,355)	-	(5,630)	-	-	-	-	(38,985)
Total Other Net Costs	(1,685)	(1,500)	-	(195)	1,539	(474)	-	(2,314)	(4,900)	(1,500)	-	-	-	-	(8,714)	-	(5,630)	-	-	-	-	(14,344)
Inflation	3,015	-	-	6,500	1,000	-	-	10,515	-	-	6,500	1,000	-	-	18,015	-	-	-	6,500	-	-	24,515
Total Financing Requirement	343,730	(13,174)	(1,671)	8,809	12,533	(7,667)	-	342,560	(9,030)	(5,560)	10,743	(3,354)	(4,205)	-	331,154	-	(8,159)	-	12,853	(5,445)	-	330,403
Funding
Revenue Support Grant	(43,795)	-	-	-	10,514	-	-	(33,281)	-	2,783	-	-	-	-	(30,498)	-	2,545	-	-	-	-	(27,953)
Retained Business Rates	(137,295)	101,821	-	-	(104,081)	-	-	(139,555)	-	-	-	-	-	-	(139,555)	-	-	-	-	-	-	(139,555)
Business Rates (London Pilot)	(8,000)	-	-	-	4,000	-	-	(4,000)	-	-	-	4,000	-	-	-	-	-	-	-	-	-	-
Council Tax	(93,777)	-	(6,554)	-	-	-	-	(100,331)	-	(5,490)	-	-	-	-	(105,821)	-	(5,791)	-	-	-	-	(111,612)
Collection Fund Surplus		-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- Council Tax	(1,500)	-	-	-	1,500	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- Retained Business Rates	11,357	-	-	-	(11,357)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Core Grants
- Public Health Grant	(35,049)	-	-	730	195	-	-	(34,124)	-	-	-	-	-	-	(34,124)	-	-	-	-	-	-	(34,124)
- NHB	(3,923)	(5,000)	-	5,741	-	-	-	(3,182)	-	-	-	-	-	-	(3,182)	-	-	-	-	-	-	(3,182)
- Strategic School Improvement Fund	(200)	-	-	-	-	-	-	(200)	-	-	-	-	-	-	(200)	-	-	-	-	-	-	(200)
- Improved Better Care Fund	(7,711)	-	(5,066)	-	-	-	-	(12,777)	-	-	-	-	-	-	(12,777)	-	-	-	-	-	-	(12,777)
- Additional Improved Better Care Fund Grant (New)	(4,196)	-	-	-	-	2,122	-	(2,074)	-	-	-	-	2,074	-	-	-	-	-	-	-	-	-
- Adult Social Care Support Grant	(916)	-	-	-	(3,084)	-	-	(4,000)	-	-	-	4,000	-	-	-	-	-	-	-	-	-	-
- Local Lead Flood	(34)	(2)	-	-	-	-	-	(36)	-	36	-	-	-	-	-	-	-	-	-	-	-	-
- Levy Returned	(1,684)	-	-	-	1,684	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Reserves																						-
- Earmarked (Corporate)	(13,121)	-	-	-	-	5,545	-	(7,576)	-	-	-	-	2,131	-	(5,445)	-	-	-	-	5,445	0	(0)
- General Fund (Smoothing)		-	(1,000)	-	-			(1,000)	-	-	-	-	-	-	(1,000)	-	-	-	-	-	-	(1,000)
Total Financing	(339,843)	96,819	(12,620)	6,471	(100,630)	7,667	-	(342,137)	-	(2,671)	-	8,000	4,205	-	(332,603)	-	(3,245)	-	-	5,445	0	(330,403)

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 20TH FEBRUARY 2019

BUDGET AND COUNCIL TAX STATUTORY CALCULATIONS

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

1. That the revenue estimates for 2019-20 be approved.

2. That it be noted that, at its meeting on 9^th January 2019, Cabinet calculated 98,396 as its Council Tax base for the year 2019-20 [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 2019-20 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)	£1,242,828,355	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)	£1,142,496,906	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)	£100,331,449	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)	£1,019.67	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]

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 20TH FEBRUARY 2019

BUDGET AND COUNCIL TAX STATUTORY CALCULATIONS

(e)	VALUATION BAND	LBTH £
	A	679.78
	B	793.08
	C	906.37
	D	1,019.67
	E	1,246.26
	F	1,472.86
	G	1,699.45
	H	2,039.34
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.

4. That it be noted that for the year 2019-20 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	213.67
B	249.29
C	284.90
D	320.51
E	391.73
F	462.96
G	534.18
H	641.02

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 20TH FEBRUARY 2019

BUDGET AND COUNCIL TAX STATUTORY CALCULATIONS

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 2019-20 for each of the categories of dwellings shown below:-

VALUATION BAND	TOTAL COUNCIL TAX £
A	893.45
B	1,042.37
C	1,191.27
D	1,340.18
E	1,637.99
F	1,935.82
G	2,233.63
H	2,680.36

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 2019-20 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 relevant basic amount of Council Tax for 2019-20 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.

Supporting documents:

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Agenda item

BUDGET AND COUNCIL TAX 2019/20