Agenda item

Report of the City Treasurer.

4.1     The City Treasurer introduced the report.  He drew attention to the savings requirements needed to ensure a balanced budget.  He confirmed that these and the other proposals in the report would enable this.  He reminded Members that a multi-year settlement had been offered and accepted and this had allowed for better longer term planning.  The detailed report flagged a number of issues which the Cabinet and then the Council needed to carefully consider in approving the budget.

          Mr Mair added that confirmation of the final grant settlement was due on Wednesday 22 February and any impact, which was not expected, would be reported in a supplementary report to Council.  He added that any changes in the outstanding precepts would also be included in the supplementary report.

4.2     Councillor Brian Connell, Chairman of the Budget Scrutiny Task Group, gave a summary of the Task Group’s findings which has been included in full in the report.  The Task Group had challenged the robustness of the budget and looked at the EIAs in each case.  Areas for double counting had also been tested.  Income streams had also been examined as part of the Task Group’s work.  Councillor Connell also referred to the capital programme and endorsed the proposals for greater monitoring.

4.3     Councillor Tim Mitchell, Cabinet Member for Finance, Property and Corporate Services, stressed the uncertainties involved.  He confirmed that greater scrutiny would be carried out of the capital programme.  Councillor Mitchell moved that the Council’s element of the Council Tax be increased by 1.9%.  He thanked the officers for producing a robust budget report and for all the associated work.

          Resolved:

          1.       That approval be given to the Council meeting on 1 March 2017 being       recommended to approve the following:

(i)              The 2017-2018 budget, as set out at Appendix A to the Cabinet report and the Council the tax levels as set out in the Council Tax resolution at Annex B of the report.

(ii)             The local element of Council tax being increased by 2% in respect of the Adult Social Care Precept as permitted by Government and anticipated in their Core Spending Power assumptions.

(iii)            The general rise in Council Tax and the Adult Social Care precept the local element for Band D properties be confirmed for 2017-2018 as £408.12 (subject to consideration of adopting any change to the standard Band D amount).

(iv)           The Council Tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council for the year ending 1 March 2018, be as specified in the Council Tax Resolution in Annex B of the report (as may be amended).  That the Precepts and Special Expenses be as also specified in Annex B for properties in the Montpelier Square and Queen’s 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.

(v)            The views of the Budget and Performance Task Group set out in Annex A of the report be noted, considered in accordance with the Budget and Policy Framework Procedure Rules in the Constitution.

(vi)           The cash limited budgets for each service with overall net expenditure for 2017-2018 of £173.850m (as set out in Schedule 3 of the report).

(vii)          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.

(viii)        The City Treasurer be delegated responsibility for any technical adjustments required to be made to the budget.

(ix)           The cost of inflation, pressures and contingency be issued to service budgets if and when the need materialises, to the limits as contained within Schedule 4 of Appendix A of the report.

(x)             The changes in pension fund deficit contributions as set out in paragraph 5.34 of the report.

(xi)           The views of consultees and consultation approach, as set out in Section 21 of the report, be considered by Council.

(xii)          The Council approve the carry forward an unspent contribution from reserves balance of £1.0m into 2017-2018 to support payments while options to absorb the expected reduction in Discretionary Housing Benefit payment from Government are considered.

(xiii)        The proposed use of new capital receipts be used under the freedoms of the Flexible Capital Receipts regulations be used to fund revenue spend on City Hall, Digital Programme and Pension Deficit Recovery and leading to future ongoing savings (and subject to review at year end to determine the actual costs, savings and financing by the City Treasurer) be recommended to Council for approval.

(xiv)        The Equality Impact Assessments included in Annex C of the report be received and noted to inform the consideration and approval of this report; and

(xv)         The Cabinet recommend that this report be submitted to the meeting of the Council on 1 March 2017 and Council be recommended to receive a speech by the Leader of the Council on Council priorities and financial aims.

2.       That Cabinet recommend to Council that the local element of Council Tax be increased for Band D properties by 1.90% as exemplified  throughout this repot for illustrative purposes and propose substituted adjustments to the schedule of illustrative savings and growth items (as set out in Schedule 4) should they determine not to increase the Band D amount by this illustrative amount.

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 the incurring of expenditure in accordance with approved policies.