The Pre-Decision Scrutiny Questions and officer responses were noted and the Scrutiny response to the draft budget presented at Cabinet on Tuesday 18 January was also noted.

DECISION

1.    To propose a General Fund Revenue Funding Requirement of £388.964m for 2022-23 subject to any remaining changes arising from the final Local Government Finance Settlement.

2.    To propose to freeze the Tower Hamlets element of Council Tax and to only levy a 1% Adult Social Care precept for 2022-23. This will result in a Band D Council Tax of £1,124.39 (Council share) 2022-23 to be referred to Full Council for approval.

3.    To propose that the Interim Corporate Director – Resources, after consultation with the Mayor and Lead Member of Resources, makes any changes required to the budget following the final settlement announcement expected in February.

4.    To note that the Council is joining the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2022-23 and note that delegated authority has been given to the Section 151 Officer to implement the Council’s inclusion in the pool.

5.    To approve the 2022-23 transfers to and from corporate reserves as set out in section 3.9 of the report.

6.    To approve the continuation of £1m funding from the Public Health grant to the Key Stage Two extension of Free School Meals.

7.    To approve that the increase in the Social Care Grant for 2022-23 is allocated in full to the services (75% to adult social care and 25% to children’s social care).

8.    To propose the 2022-23 Housing Revenue Account budget as set out in Appendix 6 to the report to be referred to Full Council for approval.

9.    To approve the HRA housing rent and service charge increases as outlined in section 3.11 of the report.

10.To approve the 2022-23 Management Fee payable to Tower Hamlets Homes (THH) of £33.236m as set out in paragraph 3.11.16 of the report.

11.To note that under the Management Agreement between the Council and THH, THH manages delegated HRA income and expenditure budgets on behalf of the Council.  In 2022-23, THH will manage delegated income budgets totalling £98.842m and delegated expenditure budgets totalling £32.128m.

12.To propose the 2022-23 Schools Budget.

13.To agree that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2022-23. The only changes included are increases to the factor values in line with the NSFF and the use of the mobility factor in the NSFF for the first time.

14.To agree that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set at 2.0%, the maximum allowed after consideration for growth and factor changes in School allocations.

15.To agree that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula. 

16. To note that the Local Council Tax Reduction Scheme will remain unchanged for 2022-23.

17.To propose the three-year General Fund Capital Programme 2022-25 as set out in Appendix 7A to the report, totalling £347.282m.

18.To propose the three-year Housing Revenue Account Capital Programme 2022-25 as set out in Appendix 7D to the report, totalling £411.927m.

19.To approve the updated and revised 2021-22 General Fund and HRA Capital Programme budgets as set out in Appendix 7A to the report and 7D, totalling £156.458m and £73.154m respectively.

20.To approve the budget allocation for the newly listed growth schemes in the programme, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director of Place in consultation with the Corporate Director of Resources and agree that schemes funded by future capital receipts, s106 and/or CIL will not go ahead until such funds have been received by the Council.

21.To approve the funding principle that when capital receipts are received in year, they replace borrowing in future years.

22.To approve delegated authority to the Corporate Director of Place in consultation with the Corporate Director of Resources to take any steps required to deliver the capital programme including but not limited to going out to tender, appointing consultants and contractors in accordance with the Procurement Procedures, acquiring land interests and appropriating land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes, subject to approved budget.

23.To note the Equalities Implications as set out in Section 4 of the report.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Procurement and Audit (N. Visram)

DECISION

Cabinet agreed to submit the budget and policy framework aspects of the report for review by the Overview and Scrutiny Committee.

1.    To propose a General Fund Revenue Funding Requirement of £383.551m for 2022-23 subject to any remaining changes arising from the final Local Government Finance Settlement, which includes a surplus of £5.413m in 2022-23 which will be allocated to one-off projects.

2.    To approve the Council Tax Base calculation for 2022-23 and agree that authority to approve this in future years is delegated to the Section 151 Officer.

3.    To propose to freeze the Tower Hamlets element of Council Tax and to only levy a 1% Adult Social Care precept for 2022-23. This will result in a Band D Council Tax of £1,146.54 (Council share) 2022-23 to be referred to Full Council for approval.

4.    To propose that the Interim Corporate Director – Resources, after consultation with the Mayor and Lead Member of Resources, makes any changes required to the budget following the final settlement announcement.

5.    To note that the Council is joining the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2022-23 and note that delegated authority has been given to the Section 151 Officer to implement the Council’s inclusion in the pool.

6.    To approve the 2022-23 transfers to and from reserves as set out in paragraph 3.9 of the report.

7.    To approve the continuation of £1m funding from the Public Health grant to the Key Stage Two extension of Free School Meals.

8.    To approve that the increase in the Social Care Grant for 2022-23 is allocated in full to the services (75% to adult social care and 25% to children’s social care).

9.    To propose the 2022-23 Housing Revenue Account budget as set out in Appendix 7 to be referred to Full Council for approval.

10.To approve the HRA housing rent and service charge increases as outlined in section 3.11.

11.To approve the 2022-23 Management Fee payable to Tower Hamlets Homes (THH) of £33.236m as set out in paragraph 3.11.16 of the report.

12.To note that under the Management Agreement between the Council and THH, THH manages delegated HRA income and expenditure budgets on behalf of the Council.  In 2022-23, THH will manage delegated income budgets totalling £98.842m and delegated expenditure budgets totalling £32.128m.

13.To propose the 2022-23 Schools Budget.

14.To agree that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2022-23. The only changes included are increases to the factor values in line with the NSFF and the use of the mobility factor in the NSFF for the first time.

15.To agree that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set as close as possible to 2.0%, the maximum allowed after consideration for growth and factor changes in School allocations.

16.To agree that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula. 

17. To note that the Local Council Tax Reduction Scheme will remain unchanged for 2022-23.

18.To note the Equalities Impact Assessment and specific equalities considerations as set out in Section 4 of the report.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Procurement and Audit (N. Visram)