Agenda item

To receive the report of the Director of Finance, Resources & Customer Services presenting for approval the Budget for 2015/16 and Medium Term Financial Plan (General Fund).            (Report No.158A)

(Key Decision – Reference No.3957)

 

Members are asked to note that:

 

·               Recommendations 2.1 – 2.10 were endorsed and recommended onto Council for formal approval by Cabinet on 11 February 2015.

 

·               The report will need to be considered in conjunction with Report No.166A 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.158A) presenting for approval the Budget for 2015/16 and Medium Term Financial Plan (General Fund).

 

NOTED

 

1.      The recommendations within the report 2.2 - 2.10 had been endorsed and referred to Council for formal approval by Cabinet on 11 February 2015.

 

2.      The report would need to be considered in conjunction with Report No.166A on the Part 2 Council agenda (Min.159 refers).

 

3.      The significant response to the budget consultation process undertaken on the proposals for 2015/16 and outcome, as detailed within section 4 and Appendix 1 of the report.

 

4.      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.

 

5.      The ongoing pressures on the Council’s budget as a result of the reduction in local government funding and continued austerity measures by Central Government, increasing level of demand on services and the negative impact of the funding allocation damping mechanism.  As a result the Leader informed Council that the Authority was considering mounting a joint legal challenge against the Government with a number of neighbouring boroughs in relation to the damping mechanism.

 

6.         The approach highlighted by the Leader of the Council towards management of the Council’s resources and delivery of a balanced budget.  Despite ongoing austerity, cost shunting measures, reductions in funding and pressures created locally by the current economic climate, significant efficiencies had been achieved, front line services protected with the long term sustainability of key services maintained alongside a further freeze in the level of Council Tax and ongoing investment in key projects and priorities.

 

7.         The approach towards management of the Council’s resources in both the short term and through the Medium Term Financial Plan had been designed to:

 

a.      reflect the Administration’s key priorities, commitments and core aim of making Enfield a better place to live and work by delivering Fairness for All; Growth & Sustainability and Strong Communities;

 

b.      ensure that the Council continued to provide quality services that would meet the changing and growing needs and expectations of service users, support and safeguard the most vulnerable within the local community as well as keeping the borough safe and clean as opposed to only focussing on the provision of statutory services.

 

8.      The need to recognise:

 

a.      the ongoing financial pressure on the Council given the reduction in resources available to meet increasing service demands, which would continue to require difficult and tough decisions in relation to service provision and delivery of the Council’s priorities.

 

b.      the progress being made under the Enfield 2017 transformation programme towards the delivery of sustainable, integrated, efficient, cost effective and local services available to access when needed and supported through assisted self-service.

 

c.       that borrowing in relation to the Capital Programme had increased but remained affordable and within the required prudential indicators.

 

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.

 

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

 

a.         the lack of recognition at what was felt to be an improving position in relation to the national economic climate with a fall in inflation and increasing rates of employment, although it was noted at the same time that unemployment in Enfield remained higher than the London average.

 

b.         the impact of the previous Labour Governments management of the economy and contribution towards the economic crash.

 

c.         the limited recognition of the funding support being provided by central Government and further reduction in the Mayor for London’s budget to assist with the freeze in Council Tax levels.

 

d.      the significant increase in the level of Council borrowing and debt under the current Labour Administration and impact in terms of the additional pressure created on the Council’s revenue budget as a result of the associated debt and interest repayments.

 

e.      the ongoing investment in the Housing Gateway scheme, capitalising of certain revenue items, lack of progress made on delivery of other major housing and regeneration schemes such as Meridian Water and failure to utilise additional funding streams available for initiatives such as the Free School programme.

 

f.       what was felt to be the lack of financial planning required to identify and delivery the level of savings required to address the challenging financial position faced by the Administration since 2010.

 

g.      at the increased level of the Council’s revenue spending on areas such as temporary accommodation when compared with other London Boroughs and at the focus on Enfield 2017 as the main strategy for delivery of efficiencies and savings given what was felt to have been the lack of alternative options and progress to date.

 

h.      at the failure of the Labour Administration to make the significant and difficult decisions required to address the budget gap moving forward.

 

As a result of the concerns expressed Councillor Neville moved and Councillor Hurer seconded reference back, under Council Procedure Rule 12.7 (a) (i) of the budget report to Cabinet for reconsideration, in order to apply the following principles, on the basis that the proper application of the measures identified would produce a reduction of 1% in Council Tax:

 

1.      review borrowing and the current borrowing commitments.

 

2.      amend the Housing Gateway project to purchase houses outside of London.

 

3.      embrace more free schools and academies.

 

4.      bring forward the 2017 project.

 

5.      reduce the budget for temporary accommodation.

 

6.      abandon the Landlord Licensing Scheme.

 

Whilst open to debating alternative budget proposals, the Leader of the Council highlighted what the Majority Group felt to be a lack of detail in the principles that had been outlined for consideration under the reference back.  Following a lengthy debate the reference back was put to the vote and lost with the following result:

 

For: 17

 

Councillor Erin Celebi

Councillor Jason Charalambous

Councillor Don Delman

Councillor Nick Dines

Councillor Peter Fallart

Councillor Alessandro Georgiou

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Ertan Hurer

Councillor Eric Jukes

Councillor Joanne Laban

Councillor Andy Milne

Councillor Terence Neville OBE JP

Councillor Michael Rye OBE

Councillor Edward Smith

Councillor Jim Steven

Councillor Glynis Vince

 

Against: 34

 

Councillor Abdul Abdullahi

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Chris Bond

Councillor Yasemin Brett

Councillor Alev Cazimoglu

Councillor Bambos Charalambous

Councillor Katherine Chibah

Councillor Guney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Pat Ekechi

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Ahmet Hasan

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Bernie Lappage

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Mary Maguire

Councillor Don McGowan

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Vicki Pite

Councillor George Savva MBE

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Doug Taylor

Councillor Haydar Ulus

 

Abstention: 0

 

 

Consideration of the budget report and recommendations (unamended) then continued and after a further lengthy debate Councillor Stewart moved and Councillor Taylor seconded closure motion 12.12 (ii) “that the question be now put”.  This was agreed unanimously, without a vote.

 

The recommendations in the report were then put to the vote and approved with the following result:

 

AGREED

 

(1)       With regard to the revenue budget for 2015/16:

 

(a)     The council tax requirement for Enfield be set at £100.917m in 2015/16.

 

(b)     Subject to final pupil count data, to approve expenditure of £307.837m in 2015/16 for the Schools budget, funded from the Dedicated Schools Grant.

 

(c)     To set the Council Tax at Band D for Enfield’s services for 2015/16 at £1,100.34 (as detailed in para 8.1of the report), there being no increase over the 2014/15 Council Tax.

 

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

 

(2)     That the Cabinet Member for Education, Children’s Services & Protection and Cabinet Member for Finance be authorised to take the decision on the schools budget for 2015/16, taking into account the comments of the Schools Forum on 4 March 2015 and any relevant decisions which the Forum make under the DfE regulations (as detailed in section 5.8 of the report)

 

(3)     To approve, subject to consultation, the Fees and Charges for Adult Social Care Services for 2015/16, as detailed in section 10.17 and Appendix 11 of the report.

 

(4)     To approve the continuation of the existing policy for the calculation of Minimum Revenue Provision (as detailed in section 9.16 of the report)

 

In accordance with the Standing Order Regulations 2014, the vote recorded in relation to decisions (1) – (4) above was as follows:

 

For: 52

 

Councillor Abdul Abdullahi

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Chris Bond

Councillor Yasemin Brett

Councillor Alev Cazimoglu

Councillor Erin Celebi

Councillor Lee Chamberlain

Councillor Bambos Charalambous

Councillor Jason Charalambous

Councillor Katherine Chibah

Councillor Don Delman

Councillor Nick Dines

Councillor Guney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Pat Ekechi

Councillor Peter Fallart

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Alessandro Georgiou

Councillor Ahmet Hasan

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Ertan Hurer

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Eric Jukes

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Joanne Laban

Councillor Bernie Lappage

Councillor Michael Lavender

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Mary Maguire

Councillor Don McGowan

Councillor Andy Milne

Councillor Terence Neville OBE JP

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Vicki Pite

Councillor Michael Rye OBE

Councillor George Savva MBE

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Edward Smith

Councillor Andrew Stafford

Councillor Jim Steven

Councillor Claire Stewart

Councillor Doug Taylor

Councillor Glynis Vince

 

Against: 0

 

Abstention: 0

 

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

 

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

 

(b)     To approve the Approved Capital Programme for 2015/16 to 2018/19 (as detailed in Table 9 and Appendix 9 of the report) and note the indicative Capital Programme, which it was also agreed would be reviewed in the light of circumstances at the time.

 

(c)     To approve the Prudential Indicators, Treasury Management Strategy, Minimum Revenue Provision Statement and criteria for investments (as detailed in section 9 and Appendices 4 and 5 of the report).

 

(6)     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.

 

(7)     With regard to the robustness of the 2015/16 budget and the adequacy of the Council’s earmarked reserves and balances:

 

(a)     To note the risks and uncertainties inherent in the 2015/16 budget and the Medium Term Financial Plan (as detailed in sections 10 & 11 of the report) and also agree the actions in hand to mitigate them;

 

(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 2015/16 budget;

 

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

 

In accordance with the Standing Order Regulations 2014, the vote recorded in relation to decisions (5) – (7) above was as follows:

 

For: 33

 

Councillor Abdul Abdullahi

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Chris Bond

Councillor Yasemin Brett

Councillor Alev Cazimoglu

Councillor Bambos Charalambous

Councillor Katherine Chibah

Councillor Guney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Pat Ekechi

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Ahmet Hasan

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Bernie Lappage

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Mary Maguire

Councillor Don McGowan

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Vicki Pite

Councillor George Savva MBE

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Doug Taylor

 

Against: 19

 

Councillor Erin Celebi

Councillor Lee Chamberlain

Councillor Jason Charalambous

Councillor Don Delman

Councillor Nick Dines

Councillor Peter Fallart

Councillor Alessandro Georgiou

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Ertan Hurer

Councillor Eric Jukes

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Andy Milne

Councillor Terence Neville OBE JP

Councillor Michael Rye OBE

Councillor Edward Smith

Councillor Jim Steven

Councillor Glynis Vince

 

Abstention: 0

 

(8)     To approve the fees and charges for Environmental Services for 2015/16 (as detailed in section 10.16 and Appendix 12 of the report).  Report No.166A on the Part 2 agenda also refers (Min 159).

 

(9)     That the New Homes Bonus be allocated to maintain regeneration and homelessness services in accordance with paragraph 5.7 in the report.

 

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

 

For: 33

 

Councillor Abdul Abdullahi

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Chris Bond

Councillor Yasemin Brett

Councillor Alev Cazimoglu

Councillor Bambos Charalambous

Councillor Katherine Chibah

Councillor Guney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Pat Ekechi

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Ahmet Hasan

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Bernie Lappage

Councillor Dino Lemonides

Councillor Derek Levy

Councillor Mary Maguire

Councillor Don McGowan

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Vicki Pite

Councillor George Savva MBE

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Doug Taylor

 

Abstentions: 19

 

Councillor Erin Celebi

Councillor Lee Chamberlain

Councillor Jason Charalambous

Councillor Don Delman

Councillor Nick Dines

Councillor Peter Fallart

Councillor Alessandro Georgiou

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Ertan Hurer

Councillor Eric Jukes

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Andy Milne

Councillor Terence Neville OBE JP

Councillor Michael Rye OBE

Councillor Edward Smith

Councillor Jim Steven

Councillor Glynis Vince

 

Against: 0