Agenda item

The Budget proposals were introduced by the Mayor who pointed out that in

addition to enforced governmental austerity, the Council also faced the

incredible financial strain arising from the Covid 19 pandemic. He believed

only the election of a future Labour Government would permit rational

budgetary planning to take place. He paid particular thanks to Councillor De

Ryk and to the Executive Director for Corporate Resources and her senior

staff for their help throughout the budget setting process.

The Mayor confirmed that he was proposing a Council Tax rise of 4.99% and

that a balanced budget would be achieved without calling upon reserves.

The Mayor further confirmed that he did not intend to vary the budget

proposals he had already fully set out at Mayor and Cabinet on February 3

and 10 and which did not require further amendment.

A motion that the proposals be accepted was moved by the Cabinet

Member for Resources, Councillor Amanda De Ryk and seconded by the

Chair of the Public Accounts Select Committee, Councillor Pat Codd.

During the debate on the budget the 5 minute limit on speeches for the Mayor

and Councillors De Ryk and Codd was suspended.

Under the provisions of the Local Authorities (Standing Orders) (England)

(Amendment) Regulations 2014, a recorded vote was conducted on this item

with the following result:

In favour 47

Damien Egan (Mayor), Obajimi Adefiranye, Tauseef Anwar, Chris Barnham, Paul Bell, Peter Bernards, Chris Best, Kevin Bonavia, Andre Bourne, Bill Brown, Juliet Campbell, Suzannah Clarke, Patrick Codd, Liam Curran, Brenda Dacres, Amanda De Ryk, Joe Dromey, Colin Elliott, Aisling Gallagher, Leo Gibbons, Alan Hall, Carl Handley, Octavia Holland, Su Coral Howard, Mark Ingleby, Liz Johnston-Franklin, Caroline Kalu, Silvana Kelleher, Louise Krupski, Jim Mallory, Paul Maslin, Sophie McGeevor, Joan Millbank, Hilary Moore, Pauline Morrison, John Muldoon, Jacq Paschoud, John Paschoud, Kim Powell, James Rathbone, Joani Reid, Sakina Sheikh, Jonathan Slater, Alan Smith, Luke Sorba, Eva Stamirowski, James-J Walsh and Susan Wise.

Against nil

Abstention nil

1.1          RESOLVED that the Council approves the recommendations shown below in respect of the 2021/22 Budget;

1.2          That, having considered the views of those consulted on the budget, and subject to proper process, as required, Council:

1.3          notes the projected overall variance of £3.2m (or 1.3%) against the agreed 2020/21 revenue budget of £248.714m as set out in section 6 of this report and that any year-end overspend will be met from corporate reserves and provisions;

1.4          endorse the budget cut proposals of £28.016m as per the Mayor and Cabinet meetings of the 9 December 2020 and 3 February 2020, as set out in section 6 of the report and summarised in Appendix Y1 and Y2;

1.5          agree the allocation of £6.500m in 2021/22 be set aside and use of £1.500m reduced contribution for concessionary fares for corporate risks and pressures;

1.6          agree the allocation of £19.685m of corporate risks and pressures, social care precept, new homes bonus, social care grant, lower tier grant and legacy s31 monies in 2021/22 to be invested in funding quantified budget pressures and opportunities, both recurring and once-off as set out in section 6;

1.7          agrees a General Fund Budget Requirement of £243.100m for 2021/22 be approved;

1.8          agree to a 4.99% increase in Lewisham’s Council Tax element. This will result in a Band D equivalent Council Tax level of £1,379.96 for Lewisham’s services and £1,743.62 overall.  This represents an overall increase in Council Tax for 2021/22 of 5.91% and is subject to the GLA precept for 2021/22 being increased by £31.59 (i.e. 9.5%) from £332.07 to £363.66, in line with the GLA’s draft budget proposals;

1.9          notes 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 6 of the report and is set out in more detail in Appendix Y4;

1.10       approve the Executive Director for Corporate Resources Section 25 Statement at Appendix Y5;

1.11       agree the draft statutory calculations for 2021/22 as set out at Appendix Y6;

1.12       note the prospects for the revenue budget for 2021/22 and future years as set out in section 6;

            Other Grants (within the General Fund)

1.13       note the adjustments to and impact of various specific grants for 2021/22 on the General Fund as set out in section 7 of this report;

Dedicated Schools Grant and Pupil Premium

Schools Block

1.14       notes that the provisional Dedicated Schools Grant allocation of £222.769m be the Schools’ Budget (Schools Block) for 2021/22;

1.15       agrees, (as recommended by Schools Forum) the once-off transfer £1.068m of Dedicated Schools Grant to the High Needs Block and the set aside of £1.24m to support schools through measures such as the growth fund and the falling rolls fund;

Central Schools Services Block (CSSB)

1.16       note the construct and allocation of £4.261m for the CSSB block allocation for 2021/22;

High Needs Block (HNB)

1.17       note the provisional High Needs Block £62.4m to support the Council’s statutory duty with regards Special Education Needs. This is a net increase of £5.99m relative to 2020/21; 

Early Years Block (EYB)

1.18       notes the provisional Dedicated Schools Grant allocation of £24.17m to the block;

Pupil Premium

1.19       notes that the pupil premium will continue in the 2021/22 financial year. The funding rates in the year will be same as 2020/21 but the census date has changed to January.

Housing Revenue Account

1.20       notes the consultation report on service charges to tenants’ and leaseholders in the Brockley area, presented to area panel members on 16 December 2020, as attached at Appendix X2;

1.21       notes the consultation report on service charges to tenants’ and leaseholders and the Lewisham Homes budget strategy presented to area panel members on 17 December 2020 as attached at Appendix X3;

1.22       sets an increase in dwelling rents of 1.5% (an average of £1.46 per week) – as per the formula rent calculations outlined in section 9 of this report;

1.23       sets an increase in the hostels accommodation charge by 1.5% (or £0.53 per week), in accordance with formula rent calculations;

1.24       approves the following average weekly increases/decreases for dwellings for:

1.24.1    service charges to non-Lewisham Homes managed dwellings (Brockley)to ensure full cost recovery and 2.1% inflationary uplift for 2021/22;

·         caretaking                                 2.10%              (£0.66)

·         grounds                                     2.10%              (£0.80)

·         communal lighting                     2.10%              (£0.06)

·         bulk waste collection                 2.10%              (£0.03)

·         window cleaning                       2.10%              (£0.00)

·         tenants’ levy                              0%                   (£0.00)

1.24.2    service charges to Lewisham Homes managed dwellings:

·             caretaking                               1.99%              (£0.13)

·             grounds                                   1.94%              (£0.04)

·             window cleaning                     26.00%            (£0.02)

·             communal lighting                   2.55%              (£0.03)

·             block pest control                    2.20%              (£0.04)

·             waste collection                      23.20%            (£0.11)

·             heating & hot water                 1.62%              (£0.17)

·             tenants’ levy                            0%                   (£0.00)

·             bulk waste disposal                 0.00%              (£0.00)

·             sheltered housing                    0.00%              (£0.00)

1.25       approves the following average weekly percentage changes for hostels and shared temporary units for;

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

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

·         water charges increase; no change

1.26       approves an increase in garage rents by 1.1% (£0.17 per week) for Brockley and Lewisham Homes residents;

1.27       notes that the budgeted expenditure for the Housing Revenue Account (HRA) for 2021/22 is £269.9m, split £117.1m revenue and £152.8m capital, which includes the decent homes and new build programmes;

1.28       agrees the HRA budget strategy cut proposals in order to achieve a balanced budget in 2021/21, as attached at Appendix X1;

Treasury Management Strategy

1.29       approves the prudential indicators and treasury indicators, as set out in section 10 of this report;

1.30       approves the Annual Investment Strategy and Creditworthiness Policy, set out in further detail at Appendix Z2;

1.31       approves the update to the Investment Strategy as set out in section 10 of this report, namely to allow investment in UK building societies with a minimum credit rating of BBB- from Fitch (or equivalent) for up to 3 months, and no more than £10m per institution;

1.32       note that the Capital Strategy 2021/22 will be brought forward during the year;

1.33       approves the Minimum Revenue Provision (MRP) policy as set out in section 10 of this report;

1.34       agrees to delegate to the Executive Director of Corporate Resources authority during 2021/22 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;

1.35       approves the overall credit and counterparty risk management criteria, as set out at Appendix Z2, the proposed countries for investment at Appendix Z3, and that it formally delegates responsibility for managing transactions with those institutions which meet the criteria to the Executive Director for Corporate Resources;

1.36       approves a minimum sovereign rating of AA- for non-UK investments;

Capital Programme

1.37       notes the 2020/21 Quarter 3 Capital Programme monitoring position and the Capital Programme potential future schemes and resources as set out in section 11 of this report;

1.38       notes the significant proposed rise in prudential borrowing of more than £308m by 2023/24, primarily to fund the Building for Lewisham programme capital plans;

1.39       approves the 2021/22 to 2023/24 Capital Programme of £556.3m, as set out in section 11 of this report and attached at Appendices W1 and W2.