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Budget Cuts

Meeting: 03/02/2021 - Mayor and Cabinet (Item 431)

431 Budget Cuts pdf icon PDF 205 KB

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Decision:

Having considered an officer report, and presentations by the Cabinet

Member for Finance and Resources, Councillor Amanda De Ryk, the Chair of

the Public Accounts Select Committee, Councillor Pat Codd and by Dr Tony

O’Sullivan of the Save Lewisham Hospital Campaign, the Mayor and Cabinet

agreed in a recorded vote that:

 

(1)  following a review the cuts proposals presented in Section 7 and

Appendices 2 to 7, totalling £12.965m, the following proposals be

approved;

 

(2)  Authorise officers to carry out consultations where staff consultation

is necessary in relation to proposals: A-09, A-11, A-13, C-10, C-11,

C-30, and F-15A and delegate the decision to the relevant

Executive Director for the service concerned.

 

(3)  Authorise officers to carry out consultations where public

consultation is necessary in relation to proposals:, B-11, C-12, C-

13, C-15, C-22, C-26, C-28, F-20, F-22 and F-24, and ask officers

to report back to the Mayor with the outcome, for a decision to be

made. This includes the proposal on NHS CAMHS with work to be

done on a contingency arrangement alongside the consultation, and

brought forward in a future report to Mayor and Cabinet.

 

(4)  Agree that where no consultation is required, agree the following

proposals: A-01A, A-10, A-12, A-14, A-16, A-17, A-18, B-12, B-13,

C-09, C-14, C-16, C-17, C-21, C-23, C-24, C-29, D-09, E-01A, E-

08A, E-11, F-19, F-21, and F-23

 

(2) the comments of the Public Accounts Select Committee of the 2 February

2021 incorporating the views of the respective select committees be received

and the tabled response be endorsed for reporting to the Select Committee;

 

 

Minutes:

The Mayor began by recounting that in every year since 2010 when he joined

the Council cuts in services had been imposed. He observed thebudget was

about half of what it was ten years ago with 1000 fewer members of staff

compared to 2010. In real terms, the budget had gone from just over £400

million to just over £240 million.

 

He said COVID-19 had only made the situation worse for local authorities.

The Government’s failure to provide Lewisham with the funding required,

combined with the financial impact of COVID-19 forced further cuts. £40m

worth of cuts were being imposed on Lewisham over the next three years.

£28m of those cuts were required for the next year. As 71% of the budget was

spent on social care and public health, the rest of our council’s services were

under severe financial strain.

 

The Mayor reminded the Cabinet that setting a legal budget was the first duty

for public representatives. The alternative would be a budget set by Robert

Jenrick and Boris Johnson in Westminster. Setting a balanced budget was

seen as the only way to protect the Council’s finances in the long-term.

 

The Mayor made a commitment to continue campaigning for an end to

austerity and lobbying the Government to deliver the funding Lewisham

needed, working with local MPs, other Labour local authorities, and the

Labour Mayor of London, Sadiq Khan.

 

The Budget Cuts was then presented by Councillor Amanda De Ryk. She

acknowledged framing a legal budget had been challenging given the level of

cuts required. She confirmed the impact of austerity and the levels of cuts

already made and still required.

 

The Chair of the Public Accounts Select Committee, Councillor Pat Codd next

addressed the Cabinet. He outlined the considerations offered by all six

Select Committees and concluded that he accepted the need for cuts in order

to pass a balanced budget.

 

A response to the written comments of the Select Committees on Budget Cuts

was tabled at the meeting. A proposal to report the response to the Select

Committee was carried by 10 – 0 in a recorded vote under the provisions of

the Local Authorities (Standing Orders) (England) (Amendment) Regulations

2014, with the following result:

 

In favour of reporting the response to the Select Committee – 10

 

Mayor Egan, Councillors Barnham, Bell, Best, Bonavia, Dacres, McGeevor,

Reid, De Ryk, & Slater.

 

Against reporting the response to the Select Committee – nil

 

Abstaining in reporting the response to the Select Committee – nil

 

The Mayor next invited Dr Tony O’Sullivan, the Chair of the Save Lewisham

Hospital Campaign, to address the Cabinet. Dr O’Sullivan made an

impassioned plea for any cuts affecting CAMHS to be reconsidered. In

response Councillor Barnham acknowledged good quality mental health

services were vital and he pointed out funding had risen over the previous

three years albeit from a historically low base. He reported a ring fenced

£250,000 under Council control has been earmarked to underpin the SLAM

contract should demand rise. The  ...  view the full minutes text for item 431