Agenda item

A report from the Director of Finance, Resources and Customer Services is attached. Thisseeks approval, for recommendation to full Council, of the Budget 2014/15 and Medium Term Financial Plan (General Fund). (Report No.186, agenda part two also refers) (Key decision – reference number 3764)

(Report No.178)

(8.20 – 8.30 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.178) setting out the Budget 2014/15 and Medium Term Financial Plan 2014/15 to 2017/18 (General Fund).

NOTED

1.               That Report No.186 also referred as detailed in Minute No.21 below;

2.               The significant level of savings that had been achieved by the Council in the previous four years and the proposals for the next four years as set out in the Medium Term Financial Plan. It was anticipated that further savings of approximately £60m would be required. The financial outlook was uncertain despite initial signs of some economic growth.

3.               That it was proposed that there be no increase in the level of Council Tax for 2014/15 as set out in the report.

4.               The extensive consultation undertaken which had included Scrutiny Panels and Area Forums as referred to in section 4 and Appendix 1 of the report.

5.               The budget pressures set out in section 7 of the report.

6.               The recommended capital programme 2013/14 – 2017/18 as detailed in section 9 and Appendix 5 of the report.

7.               The Medium Term Financial Plan as set out in section 10 of the report. In particular Members’ attention was drawn to paragraph 10.10 of the report. The Council was determined to deliver cashable savings that kept Council tax low whilst at the same time maintaining or improving the quality of priority services wherever possible. However, it also recognised that efficiency savings were not inexhaustible and continuing reductions to public sector funding made cuts to services inevitable.

8.               Appendix 8(a) of the report providing a Statement of the Section 151 Officer on the robustness of budget estimates and adequacy of the reserves. The external auditor’s review of the Council’s arrangements had concluded that all areas were assessed as “green” with no cause for concern and that the Council had adequate arrangements in place for achieving financial resilience.

9.               Councillor Charalambous proposed an amendment to recommendation 2.10 of the report. It was noted that not all Wards had spent their complete funding allocations from the Enfield Residents’ Priority Fund for 2013/14. Councillor Charalambous requested that the funds be carried over the next financial year rather than returned to general balances as proposed in the report. The recommendation to Council be amended to reflect this change, as detailed in decision 10 below.

10.           Councillor Orhan expressed concern regarding grant damping, as set out in section 5.6 of the report, and the detrimental effect on the Council’s budget. Enfield was calculated as needing over £134m in 2013/14 but the damping system reduced this to £123m resulting in £11.6m of Enfield’s calculated funding being damped away to finance other authorities. The Council continued to raise this issue with the Government at every opportunity.

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 this report including information from the Budget Consultation set out elsewhere in the report.

As part of its planning for both 2014/15 and future years the Council had considered future levels of council tax. Savings had been identified to enable the Council tax freeze to be delivered in 2014/15.

RECOMMENDED TO COUNCIL

1.               That the attention of Members be drawn to the comments in paragraph 2.13 of the report regarding 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 to not vote on any issue that could affect the calculation of the budget or Council Tax.

2.               With regard to the revenue budget for 2014/15 it was recommended that Council:

(i)              Set the council tax requirement for Enfield at £97.598m in 2014/15;

(ii)             Subject to final pupil count data, approve expenditure of £293.796m in 2014/15 for the schools’ budget, funded from the Dedicated Schools’ Grant;

(iii)            Set the Council Tax at Band D for Enfield’s services for 2014/15 at £1,100.34 (paragraph 8.1 of the report), there being no increase over the 2013/14 Council Tax;

(iv)           Approve the statutory calculations and resolutions set out in Appendix 9 of the report.

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

(i)              To note the information regarding the requirements of the Prudential Code (section 9 of the report);

(ii)             Agree the proposals for allocating resources to capital projects for 2014/15 and 2015/16 and also notes the indicative 2016/17 and 2017/18 capital programme as set out in Section 9 and Appendix 5 of the report. It is also recommended that Council agrees that these will be reviewed in the light of circumstances at the time.

(iii)            Agree 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 10.13 of the report.

5.               With regard to the robustness of the 2014/15 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 2014/15 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 2014/15 budget;

(iii)            Agrees the recommended levels of central contingency and general balances (section 12 of the report).

6.               That the Cabinet Members for Children and Young People and Finance and Property take the decision on the schools budget for 2014/15 taking into account the comments of the Schools Forum on 5 March 2014 and any relevant decisions which the Forum make under the DfE regulations in section 5.9 of the report.

7.               That Council agrees the Fees and Charges for Environmental Services for 2013/14 (Section 10.16 and Appendix 10 of the report).

8.               That Council agrees the Fees and Charges for Adult Social Care Services for 2013/14 (Section 10.17 and Appendix 11 of the report).

9.               That the current Members’ Allowances Scheme be re-approved and that the automatic increase in allowances by the average earnings as at March be not implemented for the 2014/15 financial year (Section 10.18 of the report referred). But it be acknowledged that following the elections in May 2014, the Administration might wish to review allowances within the overall budgetary figure and in accordance with the recommendations of the Independent Remuneration Panel.

10.           That any uncommitted underspend in the Enfield Residents Priority Fund for 2013/14 be carried forward to the next financial year and, noted the proposals for the continuation of the ERPF (as detailed in section 7.2 of the report).

11.           That the New Homes Bonus be allocated to support regeneration and homelessness initiatives in accordance with paragraph 5.7 of the report.

12.           That Council agree to amend the Discretionary Rate Relief Policy to incorporate the Government’s Retail Relief Scheme as set out in section 6.2 of the report.

Reason: To set the Council’s Budget Requirement and level of Council Tax for 2014/15 within the timescales set out in legislation. To agree the Treasury Management Prudential Indicators and the Capital Programme for 2014/15.

(Key decision – reference number 3764)