Agenda item

Report of the City Treasurer.

4.1     Councillor Tim Mitchell explained that the proposed budget had been prepared following a long detailed consideration of all expenditure.  The requirement to find savings had started in 2009-2010 and would continue until at least 2019 to 2020.  Whilst the Council still faced a number of uncertainties the proposed budget put the Council in a good place going forward.  Accordingly, he thanked the Finance team for all their hard work.

4.2     Steve Mair, City Treasurer, advised that the supplementary report updated the Cabinet on levies from the precepting authorities and that an updated Schedule 8 had also been circulated.  In particular, he referred to the proposal to make provision of £10m to capitalise transformation expenditure as set out in paragraph 13 of the additional report.

4.3     As part of the above, for 2016-2017 it is proposed that the ring-fenced public health grant money is directed to commission services from other directorates who can use the money to deliver public health outcomes through a variety of diversified means.  It was noted that the Public Health grant is awarded with conditions that mean that it can only be spent on public activities.

4.4     Councillor Brian Connell spoke on behalf of the Budget and Performance Task Group.  He thanked the Finance team for the detailed papers.  The Task Group had examined the legal obligations and also the related Equality Impact Assessments.  The formal findings of the Task Group were submitted for endorsement.  Councillor Gotz Mohindra also spoke in support of the Task Group’s findings.

4.5     Councillor Robert Davis recorded his thanks on behalf of the whole Cabinet to the City Treasurer and his team for all the work associated with the preparation of the budget papers.

4.6     Resolved:

1.        That the Council be recommended to adopt the following:

(i)              the 2016-2017 budget, as set out in the report and recommend to the Council the Tax levels as set out in the Council Tax resolution at Annex B of the report.

(ii)             the estimated level and use of Earmarked Reserves in Schedule 5 of the report as at the budget monitoring position for month 9, 2015-2016.

(iii)           that the local element of Council Tax is increased for Band D properties by 1.99%.

(iv)           that the local element of Council Tax is increased by 2% in respect of Adult Social Care.

(v)            that as a consequence of the general rise in Council Tax and Adult Social Care the local element for Band D properties be confirmed for 2016-2017 as £392.81.

(vi)           that the Council Tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council, for the year ending 31 March 2017, be as specified in the Council Tax Resolution in Annex B and as summarised in Schedule 7 of Annex B of the report.  That the Precepts and Special Expenses be also as summarised in paragraph 6 of Annex B of the report.  That the Council Tax be levied accordingly and that officers be authorised to alter the Council Tax Resolution as necessary following the final announcement of the Greater London Authority precept.

(vii)          that the views of the Budget and Performance Task Group set out in Annex A of the report and presented by Councillor Brian Connell and Gotz Mohindra be noted, considered and incorporated into the Cabinet’s report to Council in accordance with the Budget and Policy Framework Procedure Rules in the Constitution.

(viii)        that the cash limited budgets for each service with overall net expenditure for 2016-2017 of £183,804k (as set out in Schedule 3 of the report) be approved.

(ix)           that the members of Executive Management Team be responsible for managing their respective budgets including ensuring the implementation of savings.

(x)            that the City Treasurer be required to submit regular reports as necessary on the implementation of the savings proposals and on the realisation of pressures and mitigations as part of the regular budget monitoring reports.

(xi)           That the City Treasurer be delegated responsibility for any ttechnical adjustments required to be made to the budget and any technical changes to this report before it is issued to Council.

(xii)          that the cost of inflation be issued to service budgets if and when it materialises, to the limits as contained within Schedule 4 of the report.

(xiii)        that the views of consultees and consultation approach, as set out in section 19 of the report be considered and noted by the Council.

(xiv)        the Council agrees to consider the offer of a four year settlement from Government in return for publishing an efficiency statement demonstrating how the spending certainty from a multi-year settlement will be of benefit to residents once any final guidance has been received.

(xv)         that the Council carries forward an unspent contribution from reserves balance originally agreed as £1.1m for 2015-2016 to 2016-2017 to support a forecast increased number of Discretionary Housing Benefit claims.

(xvi)        that in adopting the recommended budget the Equality Impact Assessments included in Annex C of the report be received and noted to inform the consideration and approval of this report.

(xvii)      that the material changes to the Council’s Financial Regulations as included in Annex 4 of the report are approved and the Constitution amended accordingly.

(xviii)     that the Council sets aside £200k to support the Children’s Directorate in transitioning towards external funding for the Youth Service.

        (xiv)    that the Council be recommended to approve a budget of up to £10m for potential capitalisation of transformation expenditure to be funded from transferring individual service transformation budgets as they are identified as being eligible for such capitalisation and actual expenditure incurred.

2.          That the Cabinet recommend that this report be submitted to the meeting of the Council on 2 March 2016 and Council be recommended to receive a speech by the Leader of the Council on Council priorities and financial aims.

          Reason for Decision

          The preparation of the budget is the final stage of the annual business planning cycle leading to the approval of the Council Tax for the forthcoming financial year.  There is a statutory requirement to set a balanced budget and submit budget returns to the Department of Communities and Local Government.  Approval of the revenue estimates constitutes authority for incurring of expenditure in accordance with approved policies.