Agenda item

To receive and consider the following Cabinet report: 22 February 2016

 

(a)      Appendix A – Budget and Council Tax 2016-2017 to 2019-2020

          Appendix A1 – Update to Budget and Council Tax Setting

 

(b)      Appendix B – Capital Strategy and Capital Programme 2015-2016 to 2020-         2021

 

(c)      Appendix C – Treasury Management Strategy for 2016-2017

 

(d)      Appendix D – Council’s Pay Policy 2016-2017

 

 

 

 

The report of the Cabinet on 22 February 2016 was submitted.  Paragraphs 1, 2, 3 and 4 of the report were considered together.

 

Councillor Philippa Roe delivered the Leader’s Speech and Councillor Adam Hug made the first Opposition Speech.

 

Councillor Adam Hug moved the following amendments which were seconded by Councillor David Boothroyd.

 

Amendment 1:

 

That Cabinet Recommendation (a) (iii) be amended by:

 

After “use of the Earmarked Reserves in Schedule 5 of the report” inserting the following

 

“with a reallocation of the £4m proposed addition to the general reserves (from the 2015-2016 underspend) to instead be used to provide:

 

An additional investment in the Capital Asset Programme of £3.5m

An additional contribution to the Young Westminster Foundation of £500,000

 

And the Cabinet Recommendation (a) (ix) be amended by:

 

After “that the cash limited budgets for each service with overall net expenditure for 2016-2017 of £183,804k (as set out in Schedule 3) be approved inserting the following:

 

“with the changes as follows:  An increase to the proposed figures for 2016-2017 for the Children’s Services Early Help Budget of £484,000 and the creation of a £44,000 virtual ward budget for use by Westminster’s Youth Council.  This will be funded in the following ways:

 

·       new income from additional Capital Asset Programme funding at a net figure for 2016-2017 of £46,000.

 

·       savings from closing the senior staff private health care scheme to new entrants to generate in 2016-2017 £24,000.

 

·       savings from non-revenue generating expenditure by the Policy, Performance and Communications Directorate of £200,000.

 

This should include:

 

·       ensuring that the Westminster Reporter is at minimum fully revenue neutral through increased advertising or by otherwise scrapping it outright.  This will generate savings of £167,000.

 

·       savings from a review the department of the total spending in the Chief of Staff’s area totalling £258,000.

This should include:

 

Lord Mayor’s office reforms of £100k.

 

Ending the catering budget for Members events £20,000.

 

Scrapping payments to Deputy Cabinet Members £48,000 and the Members Allowances Scheme be amended accordingly.

 

Removal of Committee Vice-Chair payments £10,000 and the Members Allowances Scheme be amended accordingly.

 

An additional reduction in staffing or running costs of the department in addition to those listed above £80,000.

 

Amendment 2:

 

That Cabinet Recommendation (a) (iii) be also amended by:

 

In recommendations 2.1 on page 5 at the end insert the following:

 

“The Council will introduce a higher residents parking permit band of £250 for cars with engines over 2500cc in size.  This is intended to improve air quality within the City and reduce CO2 emissions, it will generate part year revenues of £251,000 of which £138,000 will be spent to reduce the standard residents parking permit rate by £6 (from £141 to £135).  The remaining £113,000 is to be used with in the Sustainability and Parking budget for initial consultation and project implementation (including the development of a charging system fully incorporating CO2 emissions), with any remaining funds made available for cycling promotion and highway safety schemes”.

 

Following debate to which the Leader of the Council, Councillor Philippa Roe, replied.

 

The Lord Mayor put amendment one moved by Councillor Adam Hug and seconded by Councillor David Boothroyd and on a recorded vote, there voted:

 

For amendment one: Councillors Begum, Boothroyd, Bush, Dimoldenberg, Gassanly, Hug, McAllister, McKie, Qureshi, Rampulla, Roca, Talukder, Taylor, Toki and Williams.

 

Against amendment one: Councillors Aiken, Alexander, Arzymanow, Astaire, Beddoe, Bott, Burbridge, Caplan, Chalkley, Church, Connell, Cox, Crockett, Davis, Devenish, Evans, Freeman, Glanz, Hall, Angela Harvey, David Harvey, Holloway,  Hyams, Mitchell, Mohammed, Prendergast, Rahuja, Rigby, Roe, Robathan, Rowley, Scarborough, Smith, Summers, Thomson, Warner and Wilkinson.

 

Absence or not voting: The Lord Mayor, Councillors Acton, Adams, Cuthbertson, Grahame, Floru, Mohindra and Roberts. 

 

The Lord Mayor declared amendment one to be LOST.

 

The Lord Mayor put amendment two, moved by Councillor Adam Hug and seconded by Councillor David Boothroyd and on a recorded vote, there voted:

 

For amendment two: Councillors Begum, Boothroyd, Bush, Dimoldenberg, Gassanly, Hug, McAllister, McKie, Qureshi, Rampulla, Roca, Talukder, Taylor, Toki and Williams.

 

Against amendment two: Councillors Aiken, Alexander, Arzymanow, Astaire, Beddoe, Bott, Burbridge, Caplan, Chalkley, Church, Connell, Cox, Davis, Devenish, Evans, Freeman, Glanz, Hall, Angela Harvey, David Harvey, Holloway, Hyams, Mitchell, Mohammed, Prendergast Rahuja, Rigby, Robathan, Prendergast, Roe, Rowley, Scarborough, Smith, Summers, Thomson, Wilkinson and Warner.

 

Absence or not voting:  The Lord Mayor, Councillors Acton, Adams, Crockett, Cuthbertson, Grahame, Floru, Mohindra and Roberts.

 

The Lord Mayor declared amendment two to be LOST.

 

The Lord Mayor advised that the voting was on the unamended recommendations of the Cabinet in paragraph 1.  The Lord Mayor put the recommendations to the vote and on a roll call vote undertaken by the Chief Executive there voted:

 

For the recommendations: Councillors Aiken, Alexander, Arzymanow, Astaire, Beddoe, Bott, Burbridge, Caplan, Chalkley, Church, Connell, Cox, Crockett, Davis, Devenish, Evans, Freeman, Glanz, Hall, Angela Harvey, David Harvey, Holloway, Hyams, Mitchell, Mohammed, Prendergast, Rahuja, Rigby, Robathan, Roe, Rowley, Prendergast, Scarborough, Smith, Summers, Thomson, Wilkinson and Warner.

 

Against the recommendations: Councillors Begum, Boothroyd, Bush, Dimoldenberg, Gassanly, Hug, McAllister, McKie, Qureshi, Rampulla, Roca, Talukder, Taylor, Toki and Williams.

 

Absence or not voting: The Lord Mayor, Councillors Acton, Adams, Crockett, Cuthbertson, Grahame, Floru, Mohindra and Roberts.

 

The Chairman declared the recommendations to be agreed. It was Resolved:

 

(a)      That the Council adopt the following:

 

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

 

(ii)             the 2016-2017 budget, as set out in this report, and adopt the Council Tax levels as set out in Council Tax resolution at Annex 1.

 

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

 

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

 

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

 

(vi)           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.

 

(vii)          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 (Appendix A) and as summarised in Schedule 7 of Annex B (Appendix A).  That the Precepts and Special Expenses be as also specified in Annex B for properties in the Montpelier Square and Queen’s Park Community Council areas as summarised in paragraph 6 of Annex B.

 

(viii)        that the views of the Budget and Performance Task Group set out in Annex A of the report (Appendix A) be noted in accordance with the Budget and Policy Framework Procedure Rules in the Constitution.

 

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

 

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

 

(xi)           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.

 

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

 

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

 

(xiv)        that the views of consultees and the consultation approach, as set out in Section 19, be considered by Council.

(xv)         that the Government 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.

 

(xvi)        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.

 

(xvii)      that the material changes to the Council’s Financial Regulations as included in Annex D be 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.

 

(xix)        that a budget of up to £10m be approved 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.

 

(b)      That the speech by the Leader of the Council on Council priorities and       financial aims be received.

 

Paragraph 2 of the Cabinet Report: 2015-2016 to 2020-2021 – Capital Strategy and Capital Programme

 

The Lord Mayor put the recommendation to the vote and on a show of hands declared the recommendations to be adopted:

 

Resolved:

 

(i)       That the capital strategy as set out in the report, Appendix B, be approved.

 

(ii)      That the capital expenditure for the general fund as set out in Appendix B of the report be approved.

 

(iii)      That the capital expenditure for the Housing Revenue Account as set out in Appendix E of the report (Appendix B) for 2016-2017 to 2020-2021.

 

(iv)     That in the event that any additional expenditure is required by a capital scheme over and above this approved programme the revenue consequences of this will be financed by revenue savings or income generation from relevant service areas.

 

(v)      That with effect from 2017-2018 the revenue costs of schemes in the programme will be financed by revenue savings or income generation from relevant service areas.

(vi)     That all development and investment projects follow the business case methodology as set out in Section 11 of the report (Appendix B) including the approval process as set out in paragraph 11.7 of the report.

 

(vii)     The terms of reference of the Capital Review Group be noted.

 

(viii)    That a facility of up to £50m for the investment and diversification of the property portfolio to be created with an initial allocation of £25m to be drawn down from 2016-2017, as outlined in paragraph 6.3.4 of the report be approved (Appendix B).

 

(ix)     That no financing sources unless stipulated in regulations or necessary agreements are being ring fenced.

 

(x)      That the process of improvement as per paragraph 11.8 of the report (Appendix B) that will be undertaken during 2016-2017 be endorsed.

 

Paragraph 3 of the Cabinet Report: Treasury Management Strategy for 2016 to 2017 to 2020 to 2021

 

The Lord Mayor put the recommendations to the vote and on a show of hands declared the recommendations to be adopted:

 

Resolved:

 

That the Council approve the:

 

(i)       the prudential indicators as set out in Appendix C;

 

(ii)      the Minimum Revenue Provision Policy set out in paragraph 8.7 of the report, Appendix C)

 

(iii)      the treasury limits for 2016-2017 to 2020-2021 as detailed in paragraph 9.6 of     the report, Appendix C.

 

(iv)     the borrowing strategy set out in Section 10 of the report, Appendix C.

 

(v)      limits to interest rate exposures and upper and lower limits on borrowing set        out in paragraph 10.10 (table 10) of the report, Appendix C.

 

(vi)     Investment strategy set out in Section 11 of the report, Appendix C, and

 

(vii)     The investments schedule set out in Appendix 1 of the report which is       Appendix C to the report.

 

Paragraph 4 of the Cabinet Report: The Council’s Pay Policy 2016-2017

 

The Lord Mayor put the recommendation to the vote and on a show of hands declared the recommendations to be adopted.

 

Resolved:

 

That the Pay Policy attached to the report, as Appendix D, be approved for publication.