Agenda item

The Budget proposals were introduced by the Mayor who thanked staff in the

Resources team for their help in compiling the Budget. He said the Council

faced five more years of austerity and an awful Financial Settlement. He

viewed the balanced budget he was promoting as the best available in the

given circumstances but it gave him no pleasure or joy. The Mayor said he

believed Government was simply wrong and its policy direction meant sevices

were now at breaking point.

 

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 10 and 17.

 

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, Dromey, Hilton and Bell 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 Abdeslam Amrani

Councillor Chris Barnham

Councillor Paul Bell

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 Liz Johnston-Franklin

Councillor Roy Kennedy

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 Rachel Onikosi

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 2016/17 budget be

agreed;

 

(ii) the 2015/16 Quarter 3 Capital Programme monitoring position be noted;

 

(iii) the 2016/17 to 2019/20 Capital Programme of £337.2m, as set out be

approved;

 

Housing Revenue Account

 

(iv) the consultation report on service charges to tenants’ and leaseholders

in the Brockley area, presented to area panel members on 17December

2015, and subsequent postal consultation be noted;

 

(v) the consultation report on service charges to tenants’ and leaseholders

and the Lewisham Homes budget strategy presented to area panel

members on 17December 2015, be noted;

 

(vi) a decrease in dwelling rents be set of 1.0% (an average of £0.99 per

week) – as per the requirements from government as presented;

 

(vii) a decrease in the hostels accommodation charge be set by 1.0% (or £0.39 per week), in accordance with Government requirements;

 

(viii) the following average weekly increases for dwellings be approved for:

 

(a) service charges to non-Lewisham Homes managed dwellings (Brockley);

·         caretaking                   1.80% (£0.06)

·         grounds                       1.80% (£0.03)

·         communal lighting    1.80% (£0.01)

·         bulk waste collection1.80% (£0.02)

·         window cleaning       1.80% (£0.09)

·         tenants’ levy               -30.0% (-£0.03)

(b) service charges to Lewisham Homes managed dwellings:

·         caretaking                   1.20% (£0.07)

·         grounds                       68.0% (£0.66)

·         window cleaning       No increase

·         communal lighting    -10.7% (-£0.13)

·         block pest control       -4.3% (-£0.07)

·         waste collection         No change

·         heating & hot water   23.1% (£1.85)

·         tenants’ levy               -30.0% (-£0.03)

·         bulk waste disposal   new service (£0.81)

·         sheltered housing     new service (£23.62)

 

(ix) the following average weekly percentage changes for hostels and shared

temporary units be approved for;

·         service charges (hostels) – caretaking etc.; 2.90% (£2.09)

·         no energy cost increases for heat, light & power; 0.0% (£0.00)

·         water charges decrease; -5.26% (-£0.01)

 

(x) an increase in garage rents be approved by Retail Price Inflation (RPI) of

0.80% (£0.09 per week) for Brockley residents and 0.80% (£0.09 per week) for

Lewisham Homes residents;

 

(xi) the budgeted expenditure for the Housing Revenue Account (HRA) for

2016/17 of £167.6m be noted, which includes the capital and new build

programmes;

 

(xii) the HRA budget strategy savings proposals be endorsed in order to

achieve a balanced budget in 2016/17,

 

Dedicated Schools Grant and Pupil Premium

 

(xiii) subject to final confirmation of the allocation, the provisional Dedicated

Schools Grant allocation of £283.5m be the Schools’ Budget for 2016/17; and

·         note the consultation with schools on the changes to the funding

·         arrangements for High Needs Pupils as set out

·         note the level of pupil premium anticipated for 2016/17 of £18.0m

 

General Fund Revenue Budget

 

(xiv) the projected overall variance against the agreed 2015/16 revenue budget

of £6.9m as set out be noted and that any year-end overspend will be met from

reserves;

 

(xv) the previously approved revenue budget savings of £6.462m for 2016/17

and budget savings proposals of £10.752 be endorsed as per the Mayor and

Cabinet meeting of the 30 September 2015,

 

(xvi) the transfer of £5.0m in 2016/17 be made from the New Homes Bonus

reserve to the General Fund for one year to meet funding shortfalls and that

the position be reviewed again for 2017/18;

 

(xvii) the use of £5.942m reserves be approved to meet the budget gap in

2016/17;

 

(xviii) budget pressures in the sum of £3.750m be met in 2016/17;

 

(xix) a fund be created in respect of as yet un-quantified revenue budget risks

in the sum of £3.750m in 2016/17, allowing the Executive Director for

Resources & Regeneration to hold resources corporately in case 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;

 

(xx) a General Fund Budget Requirement of £236.218m for 2016/17 be

approved, based on a 3.99% increase in Lewisham’s Council Tax element.

This will result in a Band D equivalent Council Tax level of £1,102.66 for

Lewisham’s services and £1,378.66 overall. This represents an overall

increase in Council Tax for 2016/17 of 1.72% and is subject to the GLA precept

for 2016/17 being reduced by 6.44% from its existing level, in line with the

GLA’s draft proposal;

 

(xxi) the Council Tax Ready Reckoner which for illustrative purposes sets out

the Band D equivalent Council Tax at various levels of increase be noted;

 

(xxii) the Executive Director for Resources & Regeneration issues cash limits to

all Directorates once the 2016/17 Revenue Budget is agreed;

 

(xxiii) the Chief Financial Officer’s Section 25 Statement be noted;

 

(xxiv) the draft statutory calculations for 2016/17, as set out, be noted;

 

(xxv) the prospects for the revenue budget for 2017/18 and future years, as set

out, be noted;

 

(xxvi) officers continue to develop firm proposals as part of the Lewisham

Future Programme to help meet the forecast budget shortfalls;

 

            Other Grants (within the General Fund)

 

(xxvii) the adjustments to and impact of various specific grants for 2016/17

on the General Fund, as set out, be noted;

 

Treasury Management Strategy

 

(xxviii) the prudential indicators and treasury limits, as set out, be noted;

 

(xxix) the 2016/17 treasury strategy, including; the potential for debt

restructuring and opportunity to invest for longer than one year in pooled

property funds, along with the investment strategy and the credit worthiness

policy, as set out, be approved;

 

(xxx) the revised Minimum Revenue Provision (MRP) policy, as set out, be

approved;

 

(xxxi) authority be delegated to the Executive Director for Resources &

Regeneration during 2016/17 to make amendments to borrowing and

investment limits provided they are consistent with the strategy and there is no

change to the Council’s authorised limit for borrowing;

 

(xxxii) the credit and counterparty risk management criteria and the proposed

countries for investment, as set out, be approved, and that responsibility be

delegated for managing transactions with those institutions which meet the

criteria to the Executive Director for Resources & Regeneration; and

 

(xxxiii) a minimum sovereign rating of AA- be approved;

 

(xxxiv) a change to the yellow and purple durational investment bands from 1

to 2 years in the credit worthiness policy be approved.

 

APPENDIX A

 

Statutory Calculations

 

1)   It be noted that at its meeting on 20 January 2016, the Council calculated

the number of 78,528.58 as its Council Tax base for 2016/17 in accordance

with the Local Authorities (Calculation of Taxbase) Regulations;

 

2)   The following amounts are now calculated by the Council for the year 2016/17 in accordance with the Local Government Finance Act 1992:

 

a. £977,472,136 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. £741,254,007 being the aggregate of the amounts which the Council

estimates for income, calculated in accordance with Section 32(3)A of the Act;

 

c. £236,218,129 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. £146,690,805 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.

 

e. £89,527,324 being the residual amount required to be collected from

Council Tax payers. This includes the surplus on the Council’s Collection

Fund of £2,937,000.

 

f. £1,102.66 being the residual sum at (e) above (less the surplus on the

Collection Fund), divided by the Council Tax base of 78,528.58 which is

Lewisham’s precept on the Collection Fund for 2016/17 at the level of Band D;

 

Band	Council Tax (LBL)
	£
A	735.11
B	857.62
C	980.14
D	1,102.66
E	1,347.69
F	1,592.73
G	1,837.76
H	2,205.32

 

 

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 2016/17, 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	184.00
B	214.67
C	245.33
D	276.00
E	337.33
F	398.67
G	460.00
H	552.00

 

 

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 2016/17 for each of the categories

of dwellings shown below:-

 

 

Band	Total Council Tax (LBL & GLA)
	£
A	919.11
B	1,072.29
C	1,225.47
D	1,378.66
E	1,685.02
F	1,991.40
G	2,297.76
H	2,757.32