Agenda item

A report from the Director of Finance, Resources and Customer Services is attached. This seeks approval, for recommendation to full Council, of the Budget 2013/14 and Medium Term Financial Plan (General Fund). (Report No.158, agenda part two also refers).  (Key decision – reference number 3620)

(Report No.151)

(8.20 – 8.35 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.151) presenting the Budget 2013/14 and Medium Term Financial Plan (General Fund) for recommendation to full Council.

NOTED

1.         that Report No.158 also referred, as detailed in Minute No.21 below;

2.         the level of savings which the Council had achieved over 3 years,  totalling £60m. The Council had made the savings with a nil increase in the level of Council Tax and, at a time of reduced Government subsidy and the current economic climate;

3.         that the Council was on course to meet the budget target for 2014/15;

4.         the results of the budget consultation as detailed in the report and outlined in the “to follow” paper which had been circulated to all Members detailing the feedback from the Scrutiny Panels and Area Forums;

5.         the detail contained within section 10.5 of the report and the outcome of recent work undertaken by the Local Government Association and supported by further London specific analysis by London Councils on potential future funding pressures. The objective was to make the Government aware that the reduction in council funding at current levels was unsustainable without cutting services;

6.         that Members’ attention was drawn to section 10.8 of the report with regard to the combined effects of the Government’s policy reforms on councils’ finances;

7.         that the Council was committed to supporting the development of the Local Plans setting out action plans for areas in the borough following the publication of the National Planning Policy Framework. Funding provision was in place for the first phases of the plan and funding would be incorporated into the Medium Term Financial Plan as required. The Council was on course to ensure that planning applications and policies were in place;

8.         section 5.6 of the report with regard to Public Health. Local authorities would, from April 2013, take over responsibility from the NHS, for improving the health and well-being of their local population and reducing health inequalities. Councillor Hamilton highlighted a number of financial concerns as set out in the report;

9.         that the report would be debated fully at the Council meeting on 27 February 2013.

Alternative Options Considered: The Council had an extensive budget planning and consultation process during which a wide range of options were considered in detail before recommendations were made. Issues raised and discussed had greatly contributed to the report including information from the Budget Consultation set out elsewhere in the report.

RECOMMENDED TO COUNCIL

1.         the attention of Members is drawn to the comments in paragraph 2.12 of the report regarding S106 of the Local Government Finance Act 1992 which requires any Member who is two months or more in arrears on their Council Tax to declare their position and not to vote on any issue that could affect the calculation of the budget or Council Tax.

2.         with regard to the revenue budget for 2-13/14 it is recommended that Council

(i)                 set the council tax requirement for Enfield at £96.343m in 2013/14

(ii)               subject to final pupil count data, approve expenditure of £292.156m in 2013/14 for the schools’ budget, funded from the Dedicated Schools’ Grant.

(iii)             Set the Council Tax at Band D for Enfield’s services for 2013/14 at £1,100.34 (paragraph 8.1 of the report), there being no increase over the 2012/13 Council Tax.

(iv)              The statutory calculations and resolutions set out in Appendix 10 of the report be approved.

3.         with regard to the Prudential Code and the Capital Programme it is recommended that Council:

(i)                 notes the information regarding the requirements of the Prudential Code (section 9 of the report refers);

(ii)               agrees the proposals for allocating resources to capital projects 2012/15 and notes the indicative 2015/17 capital programme as set out in Section 9 and Appendix 5 of the report.

(iii)             Agrees the Prudential Indicators, the Treasury Management Strategy, the Minimum Revenue Provision statement and the criteria for investments, set out in section 9 and Appendix 4 of the report.

4.         with regard to the Medium Term Financial Plan it is recommended that Council notes the forecast for the medium term as set out in section 10 of the report and adopts the key principles set out in paragraph 10.10 of the report.

5.         with regard to the robustness of the 2013/14 budget and the adequacy of the Council’s earmarked reserves and balances it is recommended that Council:

(i)         notes the risks and uncertainties inherent in the 2013/14 budget and the Medium Term Financial Plan (sections 10 and 11 of the report).

(ii)        notes the advice of the Director of Finance, Resources and Customer Services regarding the recommended levels of contingencies, balances and earmarked reserves (section 12 of the report) and has regard to the Director’s statement (section 13 of the report) when making final decisions on the 2013/14 budget;

(iii)       agrees the recommended levels of central contingency and general balances.

6.         agree that the authority to enter into public health contracts transferring from the NHS is delegated to the Director of Health, Housing and Adult Social Care (in conjunction with the Director of Public Health) and the Director of Finance, Resources and Customer Services. A separate Public Health report providing detailed information on each contract will be presented to Cabinet in March (section 5.6 of the report refers).

7.         It is recommended that the Cabinet Members for Children and Young People and Finance and Property take the decision on the schools budget for 2013/14 taking into account the comments of the Schools Forum on 13 February 2013 and any relevant decisions which the Forum make under the DfE regulations (section 5.7 of the report refers).

8.         It is recommended that Council agrees to set up a Hardship Fund of £0.67m in 2013/14 plus associated costs to be funded from the estimated Collection Fund Surplus at 31 March 2013 (section 5.8 of the report refers).

9.         It is recommended that Council agrees the Fees and Charges for Environmental Services for 2013/14 (Section 10.13 and Appendix 11 of the report refers).

10.       It is recommended that Council agrees the Fees and Charges for Adult Social Care Services for 2013/14 (Section 10.14 and Appendix 12 of the report refers).

11.       It is recommended that the current members’ allowances scheme is re-approved, and that the automatic increase in allowances by the average earnings as at March be not implemented for 2012/13 or progressively for the 2013/14 financial year (section 10.15 of the report refers).

Reason: To set the Council’s Budget Requirement and level of Council Tax for 2013/14 within the timescales set out in legislation. To agree the Treasury Management Prudential Indicators and the Capital Programme for 2013/14.

(Key decision – reference number 3620)