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 3.99% and proposed to use

Council reserves in order to ensure a balanced budget was achieved.

 

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 7 and 14 and

which did not require further amendment unless there was an unexpected late

change to the GLA precept when that body met to set its budget the following

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.

 

The Council was also addressed by Nike, aged 22, a care leaver who had

been under the wing of the Council since she was 12 years old. She

described her life journey and the various obstacles she had overcome to

reach her current situation. She warmly welcomed the budgetary proposal

that care leavers be exempted from Council Tax, which she said represented

 a meaningful impact for a vulnerable section of the community. The Council

thanked Nike for her commentary and extended their thanks to her, wishing

her well in her future education and career and standing to applaud her

contribution.

 

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 Abdeslam Amrani

Councillor Chris Barnham

Councillor Peter Bernhards

Councillor Chris Best

Councillor Kevin Bonavia

Councillor Andre Bourne

Councillor Bill Brown

Mayor Steve Bullock

Councillor Suzannah Clarke

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 Stella Jeffrey

Councillor Liz Johnston-Franklin

Councillor Roy Kennedy

Councillor Jim Mallory

Councillor Paul Maslin

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 Joan Reid

Councillor Gareth Siddorn

Councillor Jonathan Slater

Councillor Luke Sorba

Councillor Eva Stamirowski

Councillor Alan Till

Councillor Paul Upex

Councillor Susan Wise

 

Votes Against the Mayor’s Budget Proposals nil

 

Abstentions (1)

 

Councillor John Coughlin

 

RESOLVED that:

 

(1) the 2017/18 Quarter 3 Capital Programme monitoring position and the

Capital Programme potential future schemes and resources as set out in

section 5 be noted;

 

(2) the 2018/19 to 2020/21 Capital Programme of £271.5m, as set out in

section 5 of this report and attached at Appendices W1 and W2 be approved;

 

Housing Revenue Account

 

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

in the Brockley area, presented to area panel members on 12 December

2017, as attached at Appendix X2, be noted;

 

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

and the Lewisham Homes budget strategy presented to area panel

members on 14 December 2017, as attached at Appendix X3, be noted;

 

(5) 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;

 

(6) a decrease in the hostels accommodation charge by 1.0% be set (or

£0.35 per week), in accordance with Government requirements;

 

(7) the Mayor’s approval of the following average weekly

increases/decreases for dwellings be endorsed for:

 

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

(Brockley);

·         caretaking                   4.90% (£0.24)

·         grounds                       4.90% (£0.12)

·         communal lighting     4.90% (£0.06)

·         bulk waste collection4.90% (£0.02)

·         window cleaning       4.90% (£0.01)

·         tenants’ levy               30.0% (£0.03)

(b) service charges to Lewisham Homes managed dwellings:

·         caretaking                   -1.17%  (-£0.12)

·         grounds                       16.27% (£0.27)

·         window cleaning       51.41% (£0.03)

·         communal lighting     0.38% (£0.01)

·         block pest control       1.87% (£0.03)

·         waste collection         1.93% (£0.01)

·         heating & hot water   no change

·         tenants’ levy               30.0% (£0.03)

·         bulk waste disposal   2.96% (£0.02)

·         sheltered housing     1.00% (£0.24)

 

(8) the Mayor’s approval of the following average weekly percentage

changes for hostels and shared temporary units be endorsed for;

·         service charges (hostels) – caretaking etc.; no change

·         energy cost increases for heat, light & power; no change

·         water charges increase; no change

 

(9) the Mayor’s approval of an increase in garage rents by Retail Price

Inflation (RPI) of 3.9% (£0.46 per week) for Brockley residents and 3.9%

(£0.46 per week) for Lewisham Homes residents be endorsed;

 

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

for 2018/19 is £156.8m, split £84.1m revenue and £72.7m capital, which

includes the decent homes and new build programmes be noted;

 

(11) the HRA budget strategy savings proposals in order to achieve a

balanced budget in 2018/19, as attached at Appendix X1, be endorsed;

 

Dedicated Schools Grant and Pupil Premium

 

(12)  subject to final confirmation of the allocation, the provisional

Dedicated Schools Grant allocation of £292.3m be the Schools’ Budget for

2018/19;

 

(13) the implementation of the national funding formula schools block for

schools be noted;

 

(14) Lewisham uses the national funding formula schools block to allocate

funds to schools from April 2018;

 

(15) Minimum Funding Guarantee for the schools block be set at 0.25% for

2018/19;

 

(16) the change to the PFI factor in the formula to base it on estimates for

the schools block be approved;

 

(17) implementing the new banding systems in resource bases at a cost to

the High Needs block of £251k be approved;

 

(18) implementing the new banding system for  Education Health Care

Plans (EHCP) in mainstream schools at a cost to the High Needs block of

£47k be approved;

 

(19) the latest financial position in schools be noted;

 

(20) the likely future cost pressures on schools be noted;

 

(21) the estimated pupil premium of £17.0m be noted;

 

(22) the changes to the way the High Needs block is calculated be noted;

 

(23) the Loan Scheme consultation for the schools block be noted;

 

(24) the position of the consultation on eligibility for free school meals and

the early years pupil premium under Universal Credit be noted;

 

General Fund Revenue Budget

 

 

(25) the projected Directorate Services overall variance against the agreed

2017/18 revenue budget of £12.9m as set out in section8 be noted and

that any year-end overspend will have to be met from reserves;

 

(26) the previously approved revenue budget savings of £0.58m for

2018/19 and budget savings proposals of £4.28m as per the Mayor and

Cabinet meeting of the 6 December 2017, as set out in section 8 and

summarised in Appendix Y1 and Y2 be endorsed;

 

(27) the transfer of £5.0m in 2018/19 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 2019/20;

 

(28) the use of £3.570m reserves to meet the budget gap in 2018/19 be

approved;

 

(29) the allocation of £6.500m in 2018/19 be set aside for corporate risks

and pressures, added to the £2.130m set aside for unidentified risks in

2017/18;

 

(30) the allocation of £6.915m in 2018/19 to fund quantified budget

pressures be approved from the £8.630m set aside for corporate risks and

pressures;

 

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

revenue budget risks in the sum of £1.715m in 2018/19 (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 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;

 

(32) the Executive Director for Resources and Regeneration identify up to

£5m of earmarked reserves to fund service transformation costs to

facilitate services change and develop further savings proposals;

 

(33) a General Fund Budget Requirement of £241.281m for 2018/19 be

approved;

 

(34) a 3.99% increase in Lewisham’s Council Tax element be approved,

resulting in a Band D equivalent Council Tax level of £1,203.87 for

Lewisham’s services and £1,498.10 overall. This represents an overall

increase in Council Tax for 2018/19 of 4.2% and is subject to the Greater

London Authority (GLA) precept for 2018/19 being increased by £14.21

(i.e. 5.1%) from £280.02 to £294.23, in line with the GLA’s draft budget

proposal;

 

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

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

noted. This is explained in section8 and is set out in more detail in

Appendix Y3;

 

(36) the exemption from Council Tax for Care Leavers up to the age of 25

in the Borough, agreed by Council in January 2018 when setting the

2018/19 Council Tax base, and the review underway to assess other

possible exemptions be noted;

 

(37) the Executive Director for Resources & Regeneration issues cash

limits to all Directorates once the 2018/19 Revenue Budget is agreed;

 

(38) the draft statutory calculations for 2018/19 as set out at AppendixY5

be noted;

 

(39) the prospects for the revenue budget for 2019/20 and future years as

set out in section 9 be noted; as part of the Lewisham Future Programme

to help meet the future forecast budget shortfalls;

 

(40) 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;

 

Other Grants (within the General Fund)

 

(41) adjustments to and impact of various specific grants for 2018/19 on

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

 

Treasury Management Strategy

 

(42) the prudential indicators and treasury indicators, as set out in section

10 be approved;

 

(43) the Annual Investment Strategy and Credit Worthiness Policy, set out

in further detail at Appendix Z3 be approved;

 

(44) the Minimum Revenue Provision (MRP) policy as set out in section 10

be approved;

 

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

Regeneration authority during 2018/19 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;

 

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

Appendix Z3, be approved the proposed countries for investment at

Appendix Z4, and that responsibility for managing transactions with those

institutions which meet the criteria be delegated to the Executive Director

for Resources & Regeneration; and

 

(47) a minimum sovereign rating of AA be approved.