Minutes:
The Budget proposals were introduced by the Mayor who outlined the process
involved and the hard choices that had to be made in promoting a balanced
budget and frozen Council Tax. He cautioned the Council that already
announced spending limits would ensure the Council faced another very
difficult Budget round in the forthcoming year. The Mayor confirmed that he
did not intend to vary the budget proposals he had already fully set out at
Mayor and Cabinet on February 11 and 18.
A motion that the proposals be accepted was moved by the Cabinet Member
for Resources, Councillor Kevin Bonavia and seconded by Councillor Alan
Hall. There was then a general debate to which Councillors Coughlin,
Mallory, Till, Dromey, Reid and Maslin contributed followed by a reply from
Councillor Bonavia. During this general debate on the budget the 5 minute
limit on speeches for the Mayor and Councillors Bonavia, Hall and Coughlin
was suspended.
Once the debate was concluded, there was, in accordance with statutory
provisions, a recorded vote on the Mayor’s proposed Budget. The result of the
vote was as follows:
48 Votes In favour of the Mayor’s Budget Proposals
Councillor Obajimi Adefiranye
Councillor Chris Barnham
Councillor Paul Bell
Councillor Peter Bernards
Councillor Chris Best
Councillor Kevin Bonavia
Councillor Andre Bourne
Councillor David Britton
Councillor Bill Brown
Mayor Steve Bullock
Councillor Suzannah Clarke
Councillor Janet Daby
Councillor Brenda Dacres
Councillor Amanda De Ryk
Councillor Joe Dromey
Councillor Damien Egan
Councillor Colin Elliott
Councillor Alan Hall
Councillor Carl Handley
Councillor Maja Hilton
Councillor Simon Hooks
Councillor Ami Ibitson
Councillor Mark Ingleby
Councillor Stella Jeffrey
Councillor Helen Klier
Councillor Jim Mallory
Councillor Paul Maslin
Councillor David Michael
Councillor Joan Millbank
Councillor Jamie Milne
Councillor Hilary Moore
Councillor Pauline Morrison
Councillor John Muldoon
Councillor Otimi Ogunbadewa
Councillor Rachel Onikosi
Councillor Crada Onuegbu
Councillor Jacq Paschoud
Councillor John Paschoud
Councillor Pat Raven
Councillor Joan Reid
Councillor Jonathan Slater
Councillor Alan Smith
Councillor Luke Sorba
Councillor Eva Stamirowski
Councillor Alan Till
Councillor Paul Upex
Councillor James-J Walsh
Councillor Susan Wise
1 Vote Against the Mayor’s Budget Proposals
Councillor John Coughlin
Abstentions nil
RESOLVED that:
i) the recommendations shown below in respect of the 2015/16 budget be
agreed;
(ii) no further amendments to the Budget were required following
consideration of the Budget update report at Mayor & Cabinet on February 18
2015:
Capital Programme
(iii) the 2014/15 Quarter 3 Capital Programme monitoring position set out be
noted;
(iv) the 2015/16 to 2018/19 Capital Programme of £424.3m be approved, with
two new proposed major capital projects for 2015/16 and including an
allocation of £90,000 of capital to Phoenix Housing in respect of their
proposals for developing the Fellowship Inn, as set out in section 5 of the
report and attached at Appendices W1 and W2;
Housing Revenue Account
(v) the consultation report on service charges to tenants’ and leaseholders in
the Brockley area, presented to area panel members on 11 December 2014
be noted;
(vi) the consultation report on service charges to tenants and leaseholders
and the Lewisham Homes budget strategy presented to area panel members
on 15 December 2014 be noted;
(vii) an increase in dwelling rents of 2.61% (an average of £2.51 per week) be
set – option B as presented in section 6 of the report, in accordance with
current Housing Revenue Account financial strategy;
(viii) an increase in the hostels accommodation charge by 2.20% (or £1.50 per
week) be set, in accordance with the Rent Restructuring formula;
(ix) the following average weekly increases for dwellings be approved for:
service charges to non-Lewisham Homes managed dwellings (Brockley);
• caretaking 2.20% (£0.07)
• grounds 2.20% (£0.04)
• communal lighting 2.20% (£0.01)
• bulk waste collection 2.20% (£0.02)
• window cleaning 0.00% (£0.00)
• tenants levy No increase
service charges to Lewisham Homes managed dwellings:
• caretaking No increase
• grounds No increase
• window cleaning No increase
• communal lighting 40.70% (£0.35)
• block pest control 5.16% (£0.08)
• waste collection No change
• heating & hot water -18.93% (-£1.87) decrease
• tenants levy No increase
(x) the following average weekly percentage increases for hostels and shared
temporary units be approved for;
• service charges (hostels) – caretaking etc.; 4.08% (£2.77)
• no energy cost increases for heat, light & power; 0.0% (£0.00)
• water charges increase; 5.88% (£0.01)
(xi) an increase in garage rents by Retail Price Inflation (RPI) be approved of
2.3% (£0.20 per week) for Brockley residents and 2.3% (£0.27 per week) for
Lewisham Homes residents;
(xii) the budgeted expenditure for the Housing Revenue Account (HRA) for
2015/16 is £130.9m be noted;
(xiii) the HRA budget strategy savings proposals be endorsed in order to
achieve a balanced budget in 2015/16;
(xiv) 20 cases of Former Tenants’ Arrears be written off totalling £265,843.81;
Dedicated Schools Grant and Pupil Premium
(xv) subject to final confirmation of the allocation, that the provisional
Dedicated Schools Grant allocation of £275.8m be the Schools’ Budget for
2015/16; and the changes to the funding arrangements for High Needs Pupils
as set out be approved and the level of pupil premium anticipated for 2015/16
of £18.2m be noted;
General Fund Revenue Budget
(xvi) the projected overall variance against the agreed 2014/15 revenue
budget as set out and that any year-end overspend will be met from reserves
be noted;
(xvii) the previously approved revenue budget savings of £1.48m for 2015/16
and delegated budget savings proposals as per the Mayor and Cabinet
meeting of the 12 November 2014, as set out in section 8 and summarised in
Appendix Y1, be endorsed;
(xviii) the revenue budget savings presented at Mayor and Cabinet on 11
February 2015 as summarised in Appendices Y1 and Y2 of the 2015/16
Revenue Budget Savings Report (with the exception of proposal O1) will be
used to balance the budget;
(xix) the previously agreed efficiency savings of £2.5m from 2015/16 to
2017/18 be off-set against non-pay inflation in directorate budgets;
(xx) the transfer of £5.0m in 2015/16 from the New Homes Bonus reserve to
the General Fund for one year to meet funding shortfalls be approved and that
the position be reviewed again for 2016/17;
(xxi) the use of £4.96m reserves to fill the budget gap in 2015/16 be
approved;
(xxii) the creation of a fund in respect of quantified revenue budget pressures
in the sum of £4.3m in 2015/16 be approved, allowing the Executive Director
for Resources & Regeneration to hold these resources corporately until such
time that these pressures emerge during the year, and the Executive Director
for Resources and Regeneration be authorised to allocate these funds to
meet pressures when satisfied that those pressures cannot be contained
within the Directorates’ cash limits;
(xxiii) the creation of a fund in respect of as yet un-quantified revenue budget
risks in the sum of £3.2m in 2015/16 be approved, allowing the Executive
Director for Resources & Regeneration to hold these resources corporately in
case these pressures emerge during the year, and the Executive Director for
Resources and Regeneration be authorised to allocate these funds to meet
such pressures when satisfied that those pressures cannot be contained
within the Directorates’ cash limits;
(xxiv) a General Fund Budget Requirement of £246.224m for 2015/16 be
approved, based on a 0% increase in Lewisham’s Council Tax element and
the 1% Council Tax freeze grant of £1.0m being accepted. This will result in a
Band D equivalent Council Tax level of £1,060.35 for Lewisham’s services
and £1,355.35 overall. This represents an overall decrease in Council Tax for
2015/16 of 0.3% and is subject to the GLA precept for 2015/16 being reduced
by 1.3% from its existing 2014/15 level, in line with the GLA’s draft proposal;
(xxv) the Council Tax Ready Reckoner which for illustrative purposes sets out
the Band D equivalent Council Tax at various levels of increase be noted;
(xxvi) the Executive Director for Resources & Regeneration be asked to issue
cash limits to all Directorates once the 2015/16 Revenue Budget is agreed;
(xxvii) the draft Chief Financial Officer’s Section 25 Statement be received,
(xxviii) the draft statutory calculations for 2015/16 be approved;
(xxviii) the prospects for the revenue budget for 2016/17 and future years as
set out be noted:
(xxx) officers continue to develop firm proposals as part of the Lewisham
Future Programme to help meet the forecast budget shortfalls in 2015/16 and
for future years;
Other Grants (within the General Fund)
(xxxi) the adjustments to and impact of various specific grants for 2015/16 on
the General Fund as set out be noted;
Treasury Management Strategy
(xxxii) the prudential indicators and treasury limits be approved, as set out;
(xxxiii) the 2015/16 treasury strategy, including the investment strategy and
the credit worthiness policy be approved, as set out;
(xxxiv) the Executive Director for Resources & Regeneration be delegated
authority during 2015/16 to make amendments to borrowing and investment
strategies provided there is no change to the Council’s authorised limit for
borrowing;
(xxxv) the Minimum Revenue Provision (MRP) policy be approved as set out;
(xxxvi) the credit and counterparty risk management criteria and the proposed
countries for investment be approved, and responsibility for managing
transactions with those institutions which meet the criteria be delegated to the
Executive Director for Resources & Regeneration;
(xxxvii) the maximum deposit limits with the part nationalised banks be
decreased from £65m to £40m for each of Lloyds Banking Group and Royal
Bank of Scotland (RBS) Group;
(xxxviii) the one incidence of a breach of the investment policy in November
2014 when an investment with an approved counter party was made for 12
months which should have been limited to 6 months be noted; and
(xxxviii) the development of the Municipal Bond Agency be noted.
APPENDIX A
Statutory Calculations
1) It be noted that at its meeting on 21 January 2015, the Council calculated
the number of 75,526.1 as its Council Tax base for 2015/16 in accordance
with the Local Authorities (Calculation of Taxbase) Regulations;
2) The following amounts be now calculated by the Council for the year
2015/16 in accordance with the Local Government Finance Act 1992:
a. £1,042,058,620 being the aggregate of the amounts which the Council
estimates for gross expenditure, calculated in accordance with Section 32(2)A
of the Act;
b. £795,834,465 being the aggregate of the amounts which the Council
estimates for income, calculated in accordance with Section 32(3)A of the Act;
c. £246,224,155 being the amount by which the aggregate of 2(a) above
exceeds the aggregate of 2(b) above, calculated by the Council, in
accordance with Section 32A(4) of the Act, as its General Fund budget
requirement for the year;
d. £161,276,055 being the aggregate of the sums which the Council estimates
will be payable for the year into its General Fund in respect of the Settlement
Funding Assessment. This includes a Settlement Funding Assessment
adjustment of £1,259,461;
e. £84,948,100 being the residual amount required to be collected from
Council Tax payers. This includes the surplus on the Council’s Collection
Fund of £4,864,000.
f. £1,060.35 being the residual sum at (e) above (less the surplus on the
Collection Fund), divided by the Council Tax base of 75,526.1 which is
Lewisham’s precept on the Collection Fund for 2014/15 at the level of Band D;
Band |
Council Tax (LBL) |
|
£ |
A |
706.90 |
B |
824.72 |
C |
942.53 |
D |
1,060.35 |
E |
1,295.98 |
F |
1,531.62 |
G |
1,767.25 |
H |
2,120.70 |
Being the amounts given by multiplying the amount at (f) above by the
number which, in 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 amounts to
be taken into account for the year in respect of categories of dwellings listed
in different valuation bands;
3) It be noted that for the year 2015/16, the Greater London Authority is
currently consulting on the following amounts in precepts issued to the
Council, in accordance with Section 40 of the Local Government Finance Act
1992 (as amended), for each of the categories of dwellings shown below:-
Band |
GLA Precept |
|
£ |
A |
196.67 |
B |
229.44 |
C |
262.22 |
D |
295.00 |
E |
360.56 |
F |
426.11 |
G |
491.67 |
H |
590.00 |
4) Having calculated the estimated aggregate amount in each case of the
amounts at 2) (f) and 3) above, the Council, in accordance with Section 30(2)
of the Local Government Finance Act 1992, assumed the following amounts
as the amounts of Council Tax for the year 2015/16 for each of the categories
of dwellings shown below:-
Band |
Total Council Tax (LBL & GLA) |
|
£ |
A |
903.57 |
B |
1,054.16 |
C |
1,204.75 |
D |
1,355.35 |
E |
1,656.54 |
F |
1,957.73 |
G |
2,258.92 |
H |
2,710.70 |
Supporting documents: