Agenda item

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

all Directorates for their help in compiling the Budget. The Mayor confirmed

that he was proposing a Council Tax rise of 1.99%, which was the maximum

allowed without having to conduct a Local Referendum, but to that had to be

added the Governments mandatory additional 3.0% precept which was being

promoted as an answer to a perceived crisis in adult social care funding. The

Mayor said he felt the Government’s gesture was inadequate and the great

and escalating funding gap for adult social care needed to be addressed

properly at a national level.

 

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 8 and 15 and

which did not require further amendment following the very late notification of

the Local Government Finance Settlement earlier in the day.

 

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 Councillor Coughlin,

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:

 

46 Votes In favour of the Mayor’s Budget Proposals

 

Councillor Obajimi Adefiranye

Councillor Abdeslam Amrani

Councillor Chris Barnham

Councillor P Bernhards

Councillor Chris Best

Councillor Kevin Bonavia

Councillor Bill Brown

Mayor Steve Bullock

Councillor Suzannah Clarke

Councillor John Coughlin

Councillor Liam Curran

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 Sue Hordijenko

Councillor Mark Ingleby

Councillor Joyce Jacca

Councillor Stella Jeffrey

Councillor Liz Johnston-Franklin

Councillor Roy Kennedy

Councillor Helen Klier

Councillor Jim Mallory

Councillor Sophie McGeevor

Councillor David Michael

Councillor Joan Millbank

Councillor Hilary Moore

Councillor Pauline Morrison

Councillor John Muldoon

Councillor Rachel Onikosi

Councillor Jacq Paschoud

Councillor John Paschoud

Councillor Pat Raven

Councillor Jonathan Slater

Councillor Alan Smith

Councillor Luke Sorba

Councillor Eva Stamirowski

Councillor Alan Till

Councillor James-J Walsh

Councillor Susan Wise

 

Votes Against the Mayor’s Budget Proposals nil

 

Abstentions nil

 

RESOLVED that:

 

(1) Council approves the recommendations shown below in respect of the

2017/18 Budget and notes the Mayor made no amendments after considering

the 2017/18 Budget update report on 15 February 2017;

 

Capital Programme

 

(2) the 2016/17 Quarter 3 Capital Programme monitoring position and the

Capital Programme potential future schemes and resources as set out in

section 5 be noted;

 

(3) the 2017/18 to 2020/21 Capital Programme of £336.6m be approved, as

set out in section 5 and attached at Appendices W1 and W2;

 

(4) debt totalling £282,759.34 be written off related to Building Control works

at the former Hatcham Temple Grove School as set out in Appendix W3;

 

Housing Revenue Account

 

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

the Brockley area; presented to area panel members on 13 December 2016,

as attached at Appendix X2, be noted;

 

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

and the Lewisham Homes budget strategy presented to area panel members

on 15 December 2016, as attached at Appendix X3 be noted;

 

(7) a decrease in dwelling rents of 1.0% be set (an average of £0.97 per

week) – as per the requirements from government as presented in section 6;

 

(8) a decrease in the hostels accommodation charge be set by 1.0% (or £0.35

per week), in accordance with Government requirements;

 

(9) the Mayor’s approval be endorsed of the following average weekly

increases/decreases for dwellings for:

 

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

•           caretaking                 3.00% (£0.13)

•           grounds                     3.00% (£0.06)

•           communal lighting   3.00% (£0.02)

•           bulk waste collection           3.00% (£0.04)

•           window cleaning     3.00% (£0.01)

•           tenants’ levy             no change

 

service charges to Lewisham Homes managed dwellings:

•           caretaking                 1.99% (£0.12)

•           grounds                     0.69% (£0.01)

•           window cleaning     no change

•           communal lighting   3.33% (£0.04)

•           block pest control     1.88% (£0.03)

•           waste collection       -4.17% (-£0.02)

•           heating & hot waterno change

•           tenants’ levy             no change

•           bulk waste disposal-5.00% (-£0.04)

•           sheltered housing   1.00% (£0.24)

 

(10) the Mayor’s approval be endorsed of the following average weekly

percentage changes for hostels and shared temporary units for;

•           service charges (hostels) – caretaking etc.; 2.00% (£1.42)

•           energy cost increases for heat, light & power; 8.93% (£0.49)

•           water charges increase; 5.56% (£0.01)

 

(11) the Mayor’s approval be endorsed of an increase in garage rents by

Retail Price Inflation (RPI) of 2.00% (£0.23 per week) for Brockley residents

and 2.00% (£0.23 per week) for Lewisham Homes residents;

 

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

2017/18 be £159.8m which includes the capital and new build programmes;

 

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

achieve a balanced budget in 2017/18, as attached at Appendix X1;

 

Dedicated Schools Grant and Pupil Premium

 

(14) subject to final confirmation of the allocation, that the provisional

Dedicated Schools Grant allocation of £290.7m be the Schools’ Budget for

2017/18 and;

•           note the proposed fair funding formula consultation on both the schools

            block and high needs block

•           note the position on the early years block

•           note the position on the schools block

•           agree that a PFI factor should be introduced to the schools funding

            formula for Lewisham.

•           note the latest financial position in schools

•           note the likely future cost pressures on schools

•           note the estimated pupil premium of £16.0m

•           note the position on the Education Services Grant

 

General Fund Revenue Budget

 

(15) the projected overall variance against the agreed 2016/17 revenue

budget be £11.6m as set out in section 8 and that any year-end overspend

will be met from reserves;

 

(16) officers recommendation to opt-in to the Public Sector Audit

Appointments (PSAA) process to appoint an external auditor for the 2018/19

financial year be approved;

 

(17) the previously approved revenue budget savings of £16.2m for 2017/18

and budget savings proposals of £6m be endorsed as per the Mayor and

Cabinet meeting of the 28 September 2016 set out in section 8 and

summarised in Appendix Y1 and Y2;

 

(18) the transfer of £5.0m in 2017/18 from the New Homes Bonus reserve to

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

the position be reviewed again for 2018/19;

 

(19) the use of £0.027m reserves to meet the budget gap in 2017/18 be

approved;

 

(20) the remaining £2.75m of unallocated corporate risk and pressures

monies in 2016/17 be transferred to Adult Social Care budgets from 2017/18;

 

(21) a saving of £1.0m per year be made for three years from 2017/18 (£3m in

total) from the reduction of the corporate risks and pressures budget to £6.5m;

 

(22) £0.75m of the 2016/17 risk and pressures monies allocated to Directorate

budgets be no longer required and be recovered corporately and re-allocated

in 2017/18, in addition to the £6.5m above;

 

(23) the allocation of £5.12m in 2017/18 be made to fund quantified budget

pressures from the £7.25m (£6.5m plus £0.75m) set aside for corporate risks

and pressures;

 

(24) a fund be created in respect of the identified but as yet un-quantified

revenue budget risks in the sum of £2.13m in 2017/18 (the balance of budget

for corporate risks and pressures), 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 limit;

 

(25) a General Fund Budget Requirement of £232.746m for 2017/18 be

approved, based on a 4.99% increase in Lewisham’s Council Tax element.

resulting in a Band D equivalent Council Tax level of £1,157.68 for

Lewisham’s services and £1,437.70 overall. This represents an overall

increase in Council Tax for 2017/18 of 4.28% and is subject to the GLA

precept for 2017/18 being increased by £4.02 (i.e. 1.5%) from £276.00 to

£280.02, in line with the GLA’s draft proposal;

 

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

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

explained in section 8 and set out in more detail in Appendix Y3;

 

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

to all Directorates once the 2017/18 Revenue Budget is agreed;

 

(28) the draft statutory calculations for 2017/18 be approved as set out at

Appendix Y5;

 

(29) the prospects for the revenue budget for 2018/19 and future years be

noted as set out in section 9;

 

(30) officers continue to develop firm proposals and bring them forward as

soon as possible as part of the Lewisham Future Programme to help meet the

future forecast budget shortfalls;

 

(31) the use of up to £10.6m of earmarked reserves for transformation

projects as set out (£2.2m in 2016/17 and £8.4m in 2017/18 and future years)

be approved.

 

            Other Grants (within the General Fund)

 

(32) the adjustments to and impact of various specific grants for 2017/18 on

the General Fund as set out in section 8 be noted;

 

            Treasury Management Strategy

 

(33) the prudential indicators and treasury limits, as set out in section 10 be

approved;

 

(34) the 2017/18 treasury strategy, including the authority to undertake debt

restructuring and to invest for longer than one year in non-specified property

investments (namely, pooled property funds and AAA Residential Mortgage

Backed Securities), along with the investment strategy and the credit

worthiness policy as set out at Appendix Z3, be approved;

 

(35) the revised Minimum Revenue Provision (MRP) policy which confirms the

asset life approach adopted in 2016/17 and adds an option to waive the MRP

charge on borrowing where sufficient collateral and security is held against

the relevant borrowing, as set out in section 10, be approved;

 

(36) the Executive Director for Resources & Regeneration be delegated

authority during 2017/18 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;

 

(37) the credit and counterparty risk management criteria, as set out at

Appendix Z3, the proposed countries for investment at Appendix Z4 be

approved, and that responsibility for managing transactions with those

institutions which meet the criteria be delegated to the Executive Director for

Resources & Regeneration; and

 

(38) a minimum sovereign rating of AA- be approved.