Agenda item

The report was introduced by the Cabinet Member for Resources, Councillor Paul Maslin who outlined the process leading to the formation of the budget with savings proposals of £4 million and he highlighted the national background and the constraints imposed by the Coalition Government.

The Executive Director for Resources representative then informed the Mayor of a number of changes required to the printed report. On page 56 he reported paragraph 3.7 was included in error and there was no new service charge for Lewisham Homes tenants for the use of CCTV. On page 127 he confirmed the information on equalities related to outdated  legislation and that current data had been circulated in a supplementary agenda. On page 337 paragraph 12.3 he stated in relation to Community Education Lewisham the phrase ‘nil equalities impact’ was erroneous and should be replaced with ‘low equalities impact’. He further reported consultation with the Black Staff Forum had led to a counter suggestion being offered to the saving shown on page 271 and that the Trade Unions had voiced total opposition to the saving shown on page 265.

The Mayor was addressed by Councillor Hall who spoke as both Chair of the Overview & Scrutiny Committee and Chair of the Labour Group. He expressed sympathy for the unpalatable alternatives that faced the Mayor and he pointed out the pressures being placed on local councils by central government. He urged the Mayor to reconsider savings COM 02, COM 08b, RES02, RES04, and Appendix Y11. He queried saving CYP02 and asked for more information on the spending of the Section 17 budget. He also pointed out the pressure arising from saving COM10 which seemed to arise from NHS cuts.

The Mayor was next addressed by two local parents, Emma Timmins and Caroline Morris who spoke against the closure of Rushey Green Early Years Centre and Ladywell Early Years Centre respectively.

On behalf of the Trade Unions, John Collins of Unison addressed the Mayor. He claimed the page 346 section on the Complex Needs Review contained many misleading statements and he asked to be given details of consultation arrangements by the lead officer. He expressed reservations about the future of the three Early Years Centres and the long term employment prospects of the 78 staff who worked there. He said alternative providers were likely to be inferior and that any claims the council was merely providing a service that subsidised middle class families was wrong.

In response the Mayor began by placing on record his thanks to all the staff involved in drawing up the budget reports, particularly those from the Resources Directorate.

He continued by confirming that he required further information on the Early Years Centres proposals contained in Appendix Y11 and he asked officers to produce a bespoke report on them, containing greater detail, at an early meeting of Mayor & Cabinet.

The Mayor indicated he had carefully read the submission produced on behalf of all the Select Committees and that he had attended the debate at the Public Accounts Select Committee.

Taking into account all the submissions made to him, he had decided to amend the budget proposals as shown in the first resolution below. The variations amounted to £166,000 in 2012/13 and £10,000 in 2013/14. The savings which were not taken related to funding for local assemblies (COM02), the second phase of the 2011 saving raising charges to clients for non-residential services including home care (COM08b), funding of trade union support (RES02), and part of the saving to the Black Staff Forum (RES04).

The Mayor also called for an examination during the financial year of alternatives to the flat rate charging policy for residents parking permits.

The Mayor announced a one off creation of a special reserve fund to promote works identified in the Youth Task Force centred, but not exclusively focused, on apprenticeships. £500,000 was to be made available at out-turn to deliver issues associated with young people and a report would be produced later in the year detailing the proposed expenditure.

RESOLVED

That

(i) the comments of the Public Accounts Select Committee of 9 February 2012, incorporating the views of all the respective Select Committees be received and the following amendments be made to the printed proposals:

Page 223 COM02 Local Assemblies amounting to £67,500 be not taken;

Page 251 COM08b the second phase of the saving agreed in 2011 amounting to £70,000 be not taken;

Page 265 RES02 amounting to £25,000 in 2012/13 and £10,000 in 2013/14 be not taken;

Page 271 RES04 the saving be reduced to £1,500 from £5,000;

Page 326 paragraph 6.5 an examination of alternatives to the flat rate charging policy for residents parking permits take place during the 2012/13 financial year;

Youth Task Force – a one off Reserve Fund of £500,000 be set up for the 2012/13 financial year to fund apprenticeships and associated issues affecting young people. Details of proposed expenditures to be reported back to Mayor & Cabinet later in the year.

(ii) the proposals contained in Appendix Y11 pertaining to Early Years Centres be withdrawn and a further report on this item be submitted to the Mayor at an early date;

(iii) the 2011/12 Quarter 3 Capital Programme monitoring be noted;

(iv) Council be asked to approve the proposed new capital projects, and the 2012/17 Capital Programme of £399.2m,

Housing Revenue Account

(v) Council be asked to set an increase of dwelling rents of £5.76 per week or 7.04% in accordance with the Rent Restructuring formula and Department Communities and Local Government (DCLG) guidance;

(vi) Council be asked to set an increase in the hostels accommodation charge by £3.99 per week or 7.18% in accordance with the Rent Restructuring formula;

(vii) Council be asked to approve the following average weekly increases for dwellings for:

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

·        caretaking                                          3.0% (£0.08)

·        grounds                                              3.0% (£0.04)

·        communal lighting            38.67% (£0.20)

·        bulk waste collection3.0% (£0.01)

·        window cleaning                                3.0% (£0.00)

·        Tenants Levy No increase

(viii) the consultation report on service charges to tenants and leaseholders in the Brockley area, presented to area panel members on 14 December 2011 be noted;

(ix) Council be asked to approve the following service charges to Lewisham Homes managed dwellings:

·        caretaking                                                1.47% (£0.08)

·        grounds                                                    5.0% (£0.04)

·        Lumber Collection                                   No increase

·        Window Cleaning                                    200% (£0.04)

·        communal lighting                                   38.67 (£0.23)

·        block pest control                  -1.29% (-£0.02)

·        Tenants Levy             No increase

(x) a Lewisham Homes consultation report on Service charges to tenants and leaseholders, presented to area panel members on 7December 2011, be noted;

(xi) the comments of the Housing Select Committee, on rent setting be noted;

(xii) Council be asked to approve the following average* weekly percentage increases for hostels and shared temporary units for;

·        Service charges (hostels) – caretaking/grounds 31.98% (£4.15)

·        The overall rise in Hostel Service Charge will therefore be £4.15 per week and increase the weekly charge from £12.99 to £17.14 per week.

·        In lieu of Council Tax - 0.0%

·        Energy cost increases for heat, light & power – 23.38% (£3.34 per week)

·        Water Charges increase – 64.68% (£1.22 per week)

 * The average amount varies according to bed space/type of accommodation

(xiii) Council be asked to approves an increase in Garage rents by inflation of 5.6% (£0.44 per week) for Brockley residents and 5.6% (£0.54 per week) for Lewisham Homes residents;

(xiv) there be no proposals to increase charges for sheltered housing and very sheltered housing;

(xv) Council be asked to approve an increase of 6.97% or £0.32 per week for Linkline Charges to tenants for line rental and maintenance.  This would raise the charge from £4.59 to £4.91 per week;

(xvi) Private Sector Leasing rents movement to the Local Housing Allowance rate as at January 2011, according to bed size or capped LHA limit, be noted;

(xvii) the Housing Revenue Account budget strategy proposals be approved in order to achieve a balanced budget in 2012/13;

(xviii) the impact on HRA self-financing be noted;

(xix) Council be asked to agree that the Authority enters into a maximum sum of additional prudential borrowing of £44m (to the level of DCLG’s ‘self financing cap’) over the period 2012/13 to 2016/17;

(xx) authority, as to the amounts and timings of any such borrowing, be delegated to the Executive Director for Resources & Regeneration, acting on the advice of the Head of Law;

Dedicated Schools Grant

(xxi) Council be asked to approve the Dedicated Schools Grant allocation of £232.1m be the Schools Budget for 2012/13;

General Fund Revenue Budget

(xxii) the overall variance against the agreed 2011/12 revenue budget be noted;

(xxiii) the already approved revenue budget savings of £12.608m for 2012/13 be noted;

(xxiv) Council be asked to agree further revenue budget savings of £3.946m for 2012/13, as set out in detail in Appendix Y3;

(xxv) the implications of the provisional Local Government Finance Settlement for 2012/13 be noted;

(xxvi) Council be asked to fund revenue budget pressures of £2.930m in 2012/13;

(xxvii) risks and other potential budget pressures which could emerge during the year, as set out be noted and recommendations as necessary be made to Council;

(xxviii) Council be asked to set a General Fund Budget Requirement of £268.510m for 2012/13;

(xxix) the Executive Director for Resources & Regeneration issue cash limits to all Directorates once the 2012/13 Revenue Budget is agreed;

Council Tax

(xxx) an increase of 0% in Lewisham’s Council Tax element for 2012/13 is recommended to Council on 29 February 2012;

(xxxi) subject to final notification from the Greater London Authority (GLA), the overall decrease in Council Tax for 2012/13 is 0.23%, which includes the indicative GLA precept for 2012/13 being reduced by 1% from its 2011/12 level;

Future Years’ Revenue Budgets

(xxxii) the prospects for the revenue budget for 2013/14 and future years be note; 

(xxxiii) officers continue to develop firm proposals to help meet the forecast budget shortfalls in future years;

Treasury Strategy

(xxxiv) Council be asked to approve the prudential indicators and authorised limits, as set out;

(xxxv) Council be asked to adopt the revision to the Minimum Revenue Provision (MRP) policy;

(xxxvi) Council be asked to approve the 2012/13 Treasury Management Strategy, including the Investment Strategy and the revised credit rating criteria;

(xxxvii) the Council’s priorities for specified and non specified investment be noted;

(xxxviii) Council be asked to delegate to the Executive Director for Resources & Regeneration authority during 2012/13 to make amendments to the Borrowing and Investment Strategies provided there is no change to the Council’s authorised limit for borrowing;

Specific Recommendations for Appendix Y6 – Fees & Charges

(xxxix) approval be given to recommendations in relation to:

• parking charges set out at paragraph 6.25

• school meals set out at paragraph 7.13

• early years nursery places at paragraph 8.14

• highways charges at paragraph 9.11

• the recommendations in relation to the trade refuse at paragraph 10.3

• the recommendations in relation to libraries at paragraph 11.9

• Community Education Lewisham at paragraph 12.2
• Registrars at paragraph 13.3
• Community Centres at paragraph 14.3
• Pest Control at paragraph 15.3
• Local Land Charges at paragraph 16.9
• HMO Licensing at paragraph 17.3
• budget adjustments proposed in section 18

Specific Recommendations for Appendix Y7 – Complex Needs Review Savings Proposals

(xl) approval be given to recommendations in relation to:

1. begin consultation on proposals coming out of the Management Review of services to support children with complex needs to:

• (a) organise services within the Directorate for Children and Young People to bring together all assessment, planning, intervention and support functions for children and young people with complex needs under single management, deleting a service manager post;
• (b) reconfigure  the Inclusion Service, in order to remove duplication with the Early Intervention service; rationalise support for 0-5 s with complex needs and to build capacity to support and challenge schools and early years settings to improve their provision related to children and young people with special and complex needs;
• (c) realign other services relating to children with special and complex needs to ensure coherence (e.g. work on planning to secure sufficient SEN places in schools).
• (d) note that, if agreed following consultations, the reorganisation above is planned to release  £243k for savings  with £425k reinvested to ensure sufficient capacity to support 0-5 s with special and complex needs and £220k DSG resource released to cover pressures in the DSG relating to the education of children with special and complex needs.  In addition,  £160k is reserved for one-off transitional support and implementation.  .

2. ask officers complete a full equalities impact assessment.

3. ask officers to undertake further work following the initial implementation to develop proposals to integrate assessment and support processes including to consider the extent to which further savings are possible.  by end of March 2013.

4. report the outcomes of the public consultation and any proposed changes to the recommendations arising.