Decision:
Having considered an officer report, and a presentation by the Cabinet
Member for Resources, Councillor Kevin Bonavia, the Mayor agreed that:
1 the comments of the Public Accounts Select Committee of 27 January 2016
be received;
2 having considered the views of those consulted on the budget, and subject
to consideration of the outcome of consultation with business ratepayers, and
subject to proper process and consultation, as required, the Mayor:
Capital Programme
3 notes the 2015/16 Quarter 3 Capital Programme monitoring position as set
out in section 5;
4 recommends that Council be recommended to approve the 2016/17 to
2019/20 Capital Programme of £337.2m, as set out in section 5 and attached
at Appendices W1 and W2;
Housing Revenue Account
5 Council be asked to note the consultation report on service charges to
tenants’and leaseholders in the Brockley area, presented to area panel
members on 17 December 2015, and subsequent postal consultation, as
attached at Appendix X2;
6 Council be asked to note the consultation report on service charges to
tenants’ and leaseholders and the Lewisham Homes budget strategy
presented to area panel members on 17th December 2015, as attached at
Appendix X3;
7 Council be recommended to set a decrease in dwelling rents of 1.0% (an
average of £0.99 per week) – as per the requirements from government as
presented in section 6;
8 Council be recommended to set a decrease in the hostels accommodation
charge by 1.0% (or £0.39 per week), in accordance with Government
requirements;
9 Council be recommended to approve the following average weekly
increases for dwellings 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 collection 1.80% (£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)
10 Council be recommended to approve the following average weekly
percentage changes for hostels and shared temporary units 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)
11 Council be recommended to approve an increase in garage rents 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;
12 Council be asked to note that the budgeted expenditure for the Housing
Revenue Account (HRA) for 2016/17 is £167.6m which includes the capital
and new build programmes;
13 Council be recommended to endorse the HRA budget strategy savings
proposals in order to achieve a balanced budget in 2016/17, as attached at
Appendix X1;
Dedicated Schools Grant and Pupil Premium
14 Council be recommended to agree, subject to final confirmation of the
allocation, that the provisional Dedicated Schools Grant allocation of £283.5m
be the Schools’ Budget for 2016/17; and
the consultation with schools on the changes to the funding arrangements
for High Needs Pupils as set out in paragraph 7.12 be noted;
the level of pupil premium anticipated for 2016/17 of £18.0m
General Fund Revenue Budget be noted
15 Council be asked to note the projected overall variance against the agreed
2015/16 revenue budget of £6.9m as set out in section 8 of this report and
that any year-end overspend will have to be met from reserves;
16 Council be asked to endorse the previously approved revenue budget
savings of £6.462m for 2016/17 and budget savings proposals of £10.752 as
per the Mayor and Cabinet meeting of the 30 September 2015, as set out in
section 8 of the report and summarised in Appendix Y1 and Y2;
17 Council be asked to agree the transfer of £5.0m in 2016/17 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;
18 Council be asked to agree the use of £5.942m reserves to meet the budget
gap in 2016/17;
19 Council be asked to agree to fund budget pressures in the sum of £3.750m
in 2016/17;
20 Council be asked to agree to create a fund 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 these resources
corporately in case these pressures emerge during the year, and authorises
the Executive Director for Resources and Regeneration to allocate these
funds to meet such pressures when satisfied that those pressures cannot be
contained within the Directorates’ cash limits;
21 Council be recommended to approve a General Fund Budget
Requirement of £236.218m for 2016/17, 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;
22 Council be asked to note the Council Tax Ready Reckoner which for
illustrative purposes sets out the Band D equivalent Council Tax at various
levels of increase. This is explained in section 8 of the report and set out in
more detail in Appendix Y3;
23 the Executive Director for Resources & Regeneration issues cash limits to
all Directorates once the 2016/17 Revenue Budget is agreed;
24 the Chief Financial Officer’s Section 25 Statement will be presented in the
Budget Update Report on the 17 February for approval;
25 the draft statutory calculations for 2016/17 be approved as set out at
Appendix Y5;
26 the prospects for the revenue budget for 2017/18 and future years be
noted as set out in section 9;
27 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)
28 the adjustments to and impact of various specific grants for 2016/17 on the
General Fund as set out in section 8 be noted;
Treasury Management Strategy
29 Council be recommended to approve the prudential indicators and treasury
limits, as set out in section 10;
30 Council be recommended to approve 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 at Appendix Z3;
31 Council be recommended to approve the revised Minimum Revenue
Provision (MRP) policy as set out in section 10;
32 Council be recommended to agree to delegate to the Executive Director for
Resources & Regeneration authority 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;
33 Council be recommended to approve the credit and counterparty risk
management criteria, as set out at Appendix Z3, the proposed countries for
investment at Appendix Z4, and that it formally delegates responsibility for
managing transactions with those institutions which meet the criteria to the
Executive Director for Resources & Regeneration; and
34 Council be recommended to approve a minimum sovereign rating of AA- ;
35 Council be recommended to approve a change to the yellow and purple
durational investment bands from 1 to 2 years in the credit worthiness policy.
Minutes:
The report was presented by Councillor Bonavia who said a balanced budget
had been set within the changed statutory framework imposed by central
government. He noted that despite the mandatory increase in Council Tax
and the enforced use of reserves the Council was still facing additional cuts of
£15 million pa for the next three years.
Councillor Best advised the Mayor that the Public Health funding position was
still unknown and the Budget was being advanced on the best assumptions
available.
In agreeing the recommendations, the Mayor thanked Officers for their work in
compiling the Budget and for the helpful discussion that had taken place at
the Public Accounts Select Committee. Looking forwards, the Mayor observed
that the final Government Settlement had offered some clarity on the savings
required for the next three years and he asked Officers to commence work on
a three year budget addressing the totality of savings required.
Having considered an officer report, and a presentation by the Cabinet
Member for Resources, Councillor Kevin Bonavia, the Mayor, from the options
available and for the reasons set out in the report:
RESOLVED that:
1 the comments of the Public Accounts Select Committee of 27 January 2016
be received;
2 having considered the views of those consulted on the budget, and subject
to consideration of the outcome of consultation with business ratepayers, and
subject to proper process and consultation, as required, the Mayor:
Capital Programme
3 notes the 2015/16 Quarter 3 Capital Programme monitoring position as set
out in section 5;
4 recommends that Council be recommended to approve the 2016/17 to
2019/20 Capital Programme of £337.2m, as set out in section 5 and attached
at Appendices W1 and W2;
Housing Revenue Account
5 Council be asked to note the consultation report on service charges to
tenants’and leaseholders in the Brockley area, presented to area panel
members on 17 December 2015, and subsequent postal consultation, as
attached at Appendix X2;
6 Council be asked to note the consultation report on service charges to
tenants’ and leaseholders and the Lewisham Homes budget strategy
presented to area panel members on 17th December 2015, as attached at
Appendix X3;
7 Council be recommended to set a decrease in dwelling rents of 1.0% (an
average of £0.99 per week) – as per the requirements from government as
presented in section 6;
8 Council be recommended to set a decrease in the hostels accommodation
charge by 1.0% (or £0.39 per week), in accordance with Government
requirements;
9 Council be recommended to approve the following average weekly
increases for dwellings 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 collection 1.80% (£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)
10 Council be recommended to approve the following average weekly
percentage changes for hostels and shared temporary units 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)
11 Council be recommended to approve an increase in garage rents 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;
12 Council be asked to note that the budgeted expenditure for the Housing
Revenue Account (HRA) for 2016/17 is £167.6m which includes the capital
and new build programmes;
13 Council be recommended to endorse the HRA budget strategy savings
proposals in order to achieve a balanced budget in 2016/17, as attached at
Appendix X1;
Dedicated Schools Grant and Pupil Premium
14 Council be recommended to agree, subject to final confirmation of the
allocation, that the provisional Dedicated Schools Grant allocation of £283.5m
be the Schools’ Budget for 2016/17; and
the consultation with schools on the changes to the funding arrangements
for High Needs Pupils as set out in paragraph 7.12 be noted;
the level of pupil premium anticipated for 2016/17 of £18.0m
General Fund Revenue Budget be noted
15 Council be asked to note the projected overall variance against the agreed
2015/16 revenue budget of £6.9m as set out in section 8 of this report and
that any year-end overspend will have to be met from reserves;
16 Council be asked to endorse the previously approved revenue budget
savings of £6.462m for 2016/17 and budget savings proposals of £10.752 as
per the Mayor and Cabinet meeting of the 30 September 2015, as set out in
section 8 of the report and summarised in Appendix Y1 and Y2;
17 Council be asked to agree the transfer of £5.0m in 2016/17 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;
18 Council be asked to agree the use of £5.942m reserves to meet the budget
gap in 2016/17;
19 Council be asked to agree to fund budget pressures in the sum of £3.750m
in 2016/17;
20 Council be asked to agree to create a fund 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 these resources
corporately in case these pressures emerge during the year, and authorises
the Executive Director for Resources and Regeneration to allocate these
funds to meet such pressures when satisfied that those pressures cannot be
contained within the Directorates’ cash limits;
21 Council be recommended to approve a General Fund Budget
Requirement of £236.218m for 2016/17, 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;
22 Council be asked to note the Council Tax Ready Reckoner which for
illustrative purposes sets out the Band D equivalent Council Tax at various
levels of increase. This is explained in section 8 of the report and set out in
more detail in Appendix Y3;
23 the Executive Director for Resources & Regeneration issues cash limits to
all Directorates once the 2016/17 Revenue Budget is agreed;
24 the Chief Financial Officer’s Section 25 Statement will be presented in the
Budget Update Report on the 17 February for approval;
25 the draft statutory calculations for 2016/17 be approved as set out at
Appendix Y5;
26 the prospects for the revenue budget for 2017/18 and future years be
noted as set out in section 9;
27 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)
28 the adjustments to and impact of various specific grants for 2016/17 on the
General Fund as set out in section 8 be noted;
Treasury Management Strategy
29 Council be recommended to approve the prudential indicators and treasury
limits, as set out in section 10;
30 Council be recommended to approve 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 at Appendix Z3;
31 Council be recommended to approve the revised Minimum Revenue
Provision (MRP) policy as set out in section 10;
32 Council be recommended to agree to delegate to the Executive Director for
Resources & Regeneration authority 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;
33 Council be recommended to approve the credit and counterparty risk
management criteria, as set out at Appendix Z3, the proposed countries for
investment at Appendix Z4, and that it formally delegates responsibility for
managing transactions with those institutions which meet the criteria to the
Executive Director for Resources & Regeneration; and
34 Council be recommended to approve a minimum sovereign rating of AA- ;
35 Council be recommended to approve a change to the yellow and purple
durational investment bands from 1 to 2 years in the credit worthiness policy.
Supporting documents: