Agenda item

To receive the report of the Director of Finance, Resources & Customer Services presenting for approval the Budget for 2014/15 and Medium Term Financial Plan (General Fund).            (Report No.178A)

(Key Decision – Reference No.3764)

 

Members are asked to note that:

·               Recommendations 2.1 – 2.12 (as amended) were endorsed and recommended onto Council for formal approval by Cabinet on 12 February 2014.

·               The report will need to be considered in conjunction with Report No.186A 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.178A) presenting for approval the Budget for 2014/15 and Medium Term Financial Plan (General Fund).

 

NOTED

 

1.         The recommendations within the report 2.2 - 2.12 had been endorsed and referred to Council for formal approval by Cabinet on 12 February 2014.

 

2.         The report was considered in conjunction with Report No.186A on the Part 2 Council agenda (Min.131 refers).

 

3.         The outcome from the budget consultation process undertaken on the proposals for 2014/15 as detailed within section 4 and Appendix 1 (b) of the report.

 

3.         The Leader of the Council’s thanks to James Rolfe (Director of Finance, Resources and Customer Services) and his officers for the preparation of the budget and to all those who had taken part in the consultation process.

 

4.         The ongoing pressures on the Council’s budget as a result of the large scale reduction in local government funding by central Government, increasing level of demand on services and the negative impact of the funding allocation damping mechanism.

 

5.         The prudent and realistic approach highlighted by the Leader of the Council towards management of the Council’s resources and delivery of a balanced budget.  Despite the reductions in funding and pressures created locally by the current economic climate and Government’s welfare reform programme, significant efficiencies had been achieved and the long term sustainability of key services had been maintained alongside a four year freeze in the level of Council Tax.

 

6.         The approach towards management of the Council’s resources both looking forward within the Medium Term Financial Plan (MTFP) and looking back had been designed to:

 

a.      reflect the Administration’s key priorities, commitments and core aims of Fairness for All; Growth & Sustainability and Strong Communities; and

 

b.      provide protection towards social care users, safeguarding for children and those most at risk, as well as keeping the borough clean, tidy and well maintained, running an ambitious cultural and regeneration programme, including projects in Ponders End, Meridian Water, Angel Road, Lea Valley Heat and Power Network, and providing good quality affordable housing whilst reducing costs.

 

7.      The need to recognise:

 

a.      the ongoing financial pressure on the Council, which would continue to require difficult and tough decisions in relation to service provision and delivery of the Council’s priorities.

 

b.      the additional support provided for local business in relation to business rate relief and improvements in Council Tax and debt collection performance

 

c.       that, whilst borrowing in relation to the Capital Programme would need to be increased, the levels identified remained affordable and within the required prudential indicators.

 

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

 

a.         Management and stewardship of the Council’s resources by the current Administration and ability of the MTFP to address the significant funding gap identified from 2015-16 and beyond in relation to both the Revenue and Capital Programme.

 

b.      what was felt to be the limited nature and choices presented within the budget consultation proposals.

 

c.       the limited recognition of the funding support being provided by central Government and the Mayor for London to assist with the provision, for example, of school places, housing and the freeze in Council Tax levels.

 

d.      The limited detail and plans identified within the MTFP to address the budget gap identified.

 

e.      The planned management and ongoing use of reserves and balances and provisions being made for future management of the Council’s financial position alongside the planned increase in overall level of debt.

 

9.      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, as highlighted by individual Cabinet Members.

 

Following a lengthy debate, the recommendations in the report were put to the vote and approved with the following results:

 

AGREED

 

(1)       With regard to the revenue budget for 2013/14:

 

(a)     The council tax requirement for Enfield be set at £97.598m in 2014/15.

 

(b)     Subject to final pupil count data, to approve expenditure of £293.796m in 2014/15 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 2013/14 Council Tax.

 

(d)     To approve the statutory calculations and resolutions set out in Appendix 9 of the report.

 

(2)     With regard to the robustness of the 2014/15 budget and the adequacy of the Council’s earmarked reserves and balances:

 

(a)     To note the risks and uncertainties inherent in the 2014/15 budget and the Medium Term Financial Plan (as detailed in sections 10 & 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 2014/15 budget;

 

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

 

(3)     That the Cabinet Members for Children & Young People and Finance & Property be authorised to 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 (as detailed in section 5.9 of the report)

 

(4)     That the current members’ allowances scheme be re-approved, and that the automatic increase in allowances linked to average earnings as at March not be implemented for 2014/15, (as detailed in section 10.18 of the report). At the same time, it be acknowledged that, following the elections in May 2014, the administration may wish to review allowances within the overall budgetary figure and in accordance with the recommendations of the Independent Remuneration Panel.

 

(5)     That any underspend in the Enfield Residents Priority Fund (ERPF) for 2013/14 be carried over into 2014/15 and proposals for the continuation of the ERPF (as detailed in section 7.2 of the report) be noted.

 

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

 

(7)     To amend the Discretionary Rate Relief Policy to incorporate the Government’s Rate Relief Scheme (as set out in section 6.2 of the report)

 

In accordance with the newly introduced Standing Order Regulations 2014, the vote recorded in relation to decisions (1) – (7) above was as follows:

 

For: 48

 

Councillor Kate Anolue

Councillor Catriona Bearryman

Councillor Yasemin Brett

Councillor Jayne Buckland

Councillor Alev Cazimoglu

Councillor Lee Chamberlain

Councillor Bambos Charalambous

Councillor Christopher Cole

Councillor Andreas Constantinides

Councillor Christopher Deacon

Councillor Don Delman

Councillor Christiana During

Councillor Patrician Ekechi

Councillor Achilleas Georgiou

Councillor Del Goddard

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Denise Headley

Councillor Ertan Hurer

Councillor Tahsin Ibrahim

Councillor Nneka Keazor

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Simon Maynard

Councillor Donald McGowan

Councillor Chris Murphy

Councillor Terence Neville

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Martin Prescott

Councillor Geoffrey Robinson

Councillor Michael Rye

Councillor George Savva

Councillor Rohini Simbodyal

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Edward Smith

Councillor Andrew Stafford

Councillor Doug Taylor

Councillor Ozzie Uzoanya

Councillor Glynis Vince

Councillor Ann Zinkin

 

Against: 0

 

Abstentions: 2

 

Councillor Chaudhury Anwar

Councillor Ingrid Cranfield

 

(8)     With regard to the Prudential Code and the Capital Programme, to approve the proposals for allocating resources to capital projects 2014/15 and 2015/16 and also note the indicative 2016/17 and 2017/18 capital programme as set out in section 9 and Appendix 5 of the report, which it was also agreed would be reviewed in light of circumstances at the time.

 

(9)     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 10.13 of the report.

 

In accordance with the newly introduced Standing Order Regulations 2014, the vote recorded in relation to the decisions in (8) & (9) above was as follows:

 

For: 31

 

Councillor Kate Anolue

Councillor Catriona Bearryman

Councillor Yasemin Brett

Councillor Jayne Buckland

Councillor Alev Cazimoglu

Councillor Bambos Charalambous

Councillor Christopher Cole

Councillor Andreas Constantinides

Councillor Christopher Deacon

Councillor Christiana During

Councillor Patrician Ekechi

Councillor Achilleas Georgiou

Councillor Del Goddard

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Tahsin Ibrahim

Councillor Nneka Keazor

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Donald McGowan

Councillor Chris Murphy

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Geoffrey Robinson

Councillor George Savva

Councillor Rohini Simbodyal

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Doug Taylor

Councillor Ozzie Uzoanya

 

Against: 17

 

Councillor Lee Chamberlain

Councillor Don Delman

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Denise Headley

Councillor Ertan Hurer

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Simon Maynard

Councillor Terence Neville

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Martin Prescott

Councillor Michael Rye

Councillor Edward Smith

Councillor Glynis Vince

Councillor Ann Zinkin

 

Abstain: 2

 

Councillor Anwar Chaudhury

Councillor Ingrid Cranfield

 

(10)   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 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.

 

(11)   To approve the Fees and Charges for Environmental Services for 2014/15, as detailed in section 10.16 and Appendix 10 of the report.  Report No.186A on the Part 2 Agenda also refers (Min.131)

 

(12)   To approve the Fees and Charges for Adult Social Care Services for 2014/15, as detailed in section 10.17 and Appendix 11 of the report.

 

In accordance with the newly introduced Standing Order Regulations 2014, the vote recorded in relation to the decisions in (10) - (12) above was as follows:

 

For: 31

 

Councillor Kate Anolue

Councillor Catriona Bearryman

Councillor Yasemin Brett

Councillor Jayne Buckland

Councillor Alev Cazimoglu

Councillor Bambos Charalambous

Councillor Christopher Cole

Councillor Andreas Constantinides

Councillor Christopher Deacon

Councillor Christiana During

Councillor Patrician Ekechi

Councillor Achilleas Georgiou

Councillor Del Goddard

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Tahsin Ibrahim

Councillor Nneka Keazor

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Donald McGowan

Councillor Chris Murphy

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Geoffrey Robinson

Councillor George Savva

Councillor Rohini Simbodyal

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Doug Taylor

Councillor Ozzie Uzoanya

 

Abstain: 19

 

Councillor Lee Chamberlain

Councillor Anwar Chaudhury

Councillor Ingrid Cranfield

Councillor Don Delman

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Denise Headley

Councillor Ertan Hurer

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Simon Maynard

Councillor Terence Neville

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Martin Prescott

Councillor Michael Rye

Councillor Edward Smith

Councillor Glynis Vince

Councillor Ann Zinkin