Agenda item

Report of the City Treasurer.

5.1     Steven Mair, City Treasurer, introduced the report.  He advised that savings of £36m had been identified, mainly from the back office to enable a balanced budget to be presented.  He advised that currently a small underspend was being projected for 2014/15.  The report also included outline budgets for 2016/17 and 2017/18 which still contained various risks, not least increased demands on services.  These will be the subject of further detailed work in the coming months.

          In respect of the Capital Programme, Mr Mair stressed the need for the Council to generate its own resources in order to fund the programme.  The budget, as a whole, had been the subject of rigorous scrutiny at both officer level and Members.  He referred to the levies imposed by the precepting authorities which remained unchanged except for a minor change to the Lee Valley Regional Park Authority which will result in £15,000 being allocated to balances.

5.2     Councillor Melvyn Caplan, Cabinet Member for Finance, Corporate and Customer Services, advised that the report was the result of 18 months detailed work which it was right to acknowledge and would allow the Council to freeze the Council Tax for an 8^th successive year.  The budget allowed the Council to protect vital services as most of the savings had come from back office provision.  He referred to further challenges in 2016/17 and future years for which work had commenced and would continue.  He thanked the officer team for the work undertaken to achieve this position.  He commended the budget for recommendation to the Council.

5.3     Councillor Tim Mitchell spoke on behalf of the Budget Task Group.  He referred to the summary set out on pages 117 to 124 of the agenda which set out the findings of the Task Group including their recommendations.  These would be taken forward as part of the budget implementation.

5.4     The Leader placed on record her thanks to Councillor Caplan and the officer team for all the work in bringing the budget together which contained savings still mainly from the back office.  She too commended the budget to the Council for approval.

          Resolved:

          That the Council be recommended to approve the following:

·             The 2015/16 budget as set out in this report and recommend to the Council the Tax levels as set out in the Council Tax resolution at Annex B of the report.

·             The capital expenditure programme as set out in Schedule 1 of the report for the period to 2016/17 with years 2017/18 to 2019/20 only proceeding where projects costs can be afforded including the cost of financing.

·             That capital financing costs be paid for from service budgets from 2017/18.

·             The estimated level and use of Earmarked Reserves in Schedule 6 of the report as at the budget monitoring position for month 10, 2014/15.

·             That the local element for Band D properties be confirmed at the same level as 2014/15 (ie £377.74) in 2015/16 and that Westminster accordingly take advantage of the 1% (£0.5m) Council Tax Freeze grant for 2015/16.

·             That the Council Tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council for the year ending 31 March 2016 be as specified in the Council Tax Resolution in Annex B of the report and as summarised in Schedule 6 of Annex B.  That the precepts and Special Expenses be as also specified in Annex B for properties in the Montpelier Square and Queens Park Community Council areas as summarised in paragraph 6 of Annex B of the report.  That the Council Tax be levied accordingly and that officers be authorised to alter the Council Tax Resolution as necessary following the final announcement of the Greater London Authority precept.

·             That the views of the Budget and Performance Task Group set out in Annex A of the report be noted, considered and incorporated into the Cabinet’s report to Council in accordance with the Budget and Policy Framework Procedure Rules in the Constitution.

·             That the cash limited budgets for each service with overall net expenditure for 2015/16 of £194,808k be approved.

·             That the members of the Executive Management Team be responsible for managing their respective budgets including ensuring the implementation of savings.

·             That the City Treasurer be required to submit regular reports as necessary on the implementation of the savings proposals and on the realisation of pressures and mitigations as part of the regular budget monitoring reports.

·             That the City Treasurer be delegated responsibility for any technical adjustments required to be made to the budget.

·             That the cost of inflation be issued to service budgets if and when it materialises to the limits as contained within Schedule 5 of the report under Corporate Pressures.

·             Use of £1.1m one off reserves to part fund the gap in DHP funding.

·             That the views of consultees and consultation approach, as set out in section 19 of the report be considered by Council.

·             That the Equality Impact Statement as part of the report, Annex D, be received and noted.

          That this report be submitted to the Extraordinary meeting of the Council on 4^th March and Council be recommended to receive a speech by the Leader of the Council on Council priorities and financial aims.

          Reasons for Decision

          The preparation of the budget is the final stage of the annual business planning cycle leading to the approval of the Council Tax for the forthcoming financial year.  There is a statutory requirement to set a balanced budget and submit budget returns to the Department of Communities and Local Government (CLG).  Approval of the revenue estimates constitutes authority for incurring of expenditure in accordance with approved policies.