To receive the report of the Director of Finance, Resources & Customer Services presenting for approval the Budget for 2013/14 and Medium Term Financial Plan (General Fund).(Report No.151A)

(Key Decision – Reference No.3620)

Members are asked to note that:

·              Recommendations 2.1 – 2.11 were endorsed and recommended onto Council for formal approval by Cabinet on 13 February 2013.

·              The report will need to be considered in conjunction with Report No.158 on the Part 2 Council agenda

Councillor Taylor moved and Councillor Stafford seconded the report of the Director of Finance, Resources and Customer Services (No.151A) presenting for approval the Budget for 2013/14 and Medium Term Financial Plan (General Fund).

NOTED

1.      The recommendations within the report (with the exception of 2.12 which had been added for Council) had been endorsed and referred onto Council, at the Cabinet meeting held on 12 February 2013.

2.      The outcome from the budget consultation process undertaken on the proposals for 2013/14, as detailed within section 4 and Appendix 1 of the report.

3.      The ongoing pressures on the Council’s budget as a result of the large scale reduction in local government funding by Central Government and the current economic climate alongside the need to manage increasing levels on demand on services and the negative impact of the funding allocation damping mechanism.

4.            The significant level of savings already delivered and ongoing need for further reductions to be achieved in relation to maintaining a balanced budget position.  It had been recognised that the ongoing strategy to delivery the required level of savings would require hard decisions in relation to service provision but these had and would continue to be undertaken on a prudent basis to avoid creating unnecessary pain and to protect the long term sustainability of services.

5.            The savings identified to date and budget proposals for 2013/14 and beyond had been:

a.      developed to reflect the Administrations key priorities, commitments  and achievements and core aims of Fairness for All; Growth & Sustainability and Strong Communities; and

b.      achieved alongside a further 0% recommended increase in Council Tax and increased satisfaction levels in relation to the management and provision of services by the Council.

6.            The concerns highlighted by the Opposition Group in relation to:

a.            The Strategy in place to continue delivering a balanced budget given the size of the budget deficit and approach outlined within the Council’s budget consultation paper and current Medium Term Financial Plan to 2015-16 and beyond.

b.      The planned management and ongoing use of reserves and balances and provisions being made for future management of the Council’s financial position outside of any borrowing requirement.

c.      The assumptions on which delivery of the 2013/14 budget proposals and Medium Term Financial Strategy had been based, with specific reference to the level of inflation, ability to manage the level of demand on services and generate additional income.

7.      The thanks to Council officers for their support and efforts in delivery of the budget proposals alongside the key achievements made by the current Administration.

AGREED

(1)    to note S106 of the Local Government Finance Act 1992 which required any Member who was 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 2013/14:

(a)    The council tax requirement for Enfield be set at £96.343m in 2013/14;

(b)    Subject to final pupil count data, to approve expenditure of £292.156m in 2013/14 for the Schools budget, funded from the Dedicated Schools Grant;

(c)    To set the Council Tax at Band D for Enfield’s services for 2013/14 at £1,100.34 (as detailed in para 8.1of the report), there being no increase over the 2012/13 Council Tax;

(d)    To approve the statutory calculations and resolutions set out in Appendix 10 of the report;

(3)    With regard to the Prudential Code and the Capital Programme:

(a)    To note the information regarding the requirements of the Prudential Code (as detailed in section 9 of the report);

(b)    To approve the proposals for allocating resources to capital projects 2012/15 and note the indicative 2015/17 capital programme as set out in section 9 and Appendix 5 of the report;

(c)    To approve the Prudential Indicators, the Treasury Management Strategy, the Minimum Revenue Provision statement and the criteria for investments, as set out in section 9 and Appendix 4 of the report

(4)    To note, with regard to the Medium Term Financial Plan the forecast for the medium term as set out in section 10 of the report and adopt 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:

(a)    To note the risks and uncertainties inherent in the 2013/14 budget and the Medium Term Financial Plan (as detailed in sections10 & 11 of the report);

(b)    To note the advice of the Director of Finance, Resources & Customer Services regarding the recommended levels of contingencies, balances and earmarked reserves (as detailed in section 12 of the report) and have regard to the Director’s statement (as detailed in section 13 of the report) when making final decisions on the 2013/14 budget;

(c)    The recommended levels of central contingency and general balances (as detailed in section 12 of the report);

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

(7)    That the Cabinet Members for Children and Young People and Finance & Property be authorised to take the decision on the schools budget for 2013/14 taking into account the comments of the Schools Forum on February 13th 2013 and any relevant decisions which the Forum make under the DfE regulations (as detailed in section 5.7 of the report).

(8)    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 31st March 2013 (as detailed in section 5.8 of the report).

(9)    To approve the Fees and Charges for Environmental Services for 2013/14, as detailed in section 10.13 and Appendix 11 of the report.

(10)  To approve the Fees and Charges for Adult Social Care Services for 2013/14, as detailed in section 10.14 and Appendix 12 of the report.

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

(12)  That any underspend in the Enfield Residents Priority Fund for 2012/13 be carried forward for utilisation in 2013/14 (as detailed in section 12.5 of the report).

Following a lengthy debate, the above recommendations were put to the vote and approved with the following result:

For: 32

Against: 0

Abstentions: 22