Agenda item

To receive the report of the Director of Finance, Resources & Customer Services presenting for approval the Budget for 2016/17 and Medium Term Financial Plan (General Fund).  (Report No.171A)

(Key Decision – Reference No. 4175)

 

Members are asked to note that:

 

·            Recommendations 2.1 – 2.14 were endorsed and recommended onto Council for formal approval by Cabinet on 10 February 2016.

 

·            The report will need to be considered in conjunction with Report No.178  on the Part 2 Council agenda.

Before the item was taken Councillor Neville expressed concern that:

 

a.         The Council was being asked to consider the outcome of the Overview & Scrutiny budget consultation meeting (recommendation 2.14 of the report) after the other recommendations, when it would have made more sense to consider it before the other recommendations.

 

b.         The Overview and Scrutiny Budget meeting had been held the day before the final budget papers were due to be circulated which gave little time for any feedback from the meeting to be taken account of and any suggestions incorporated. 

 

In response to the concerns raised, Councillor Taylor advised that the recommendations were not listed in any particular sequence so this could be taken before the other recommendations.

 

Councillor Taylor moved and Councillor Stafford seconded the report of the Director of Finance, Resources and Customer Services (171A) presenting for approval the Budget for 2016/17 and the Medium Term Financial Plan. 

 

NOTED

 

1.         Recommendations 2.1 – 2.14 had been endorsed and recommended onto Council for formal approval by Cabinet on 10 February 2016.

 

2.         The report would need to be considered in conjunction with Report No:  178A on the Part 2 Council agenda (Min ??? refers).

 

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 during such a difficult period for public finances.

 

4.      The following comments highlighted by the Leader of the Council:

 

a.         Concern was expressed at the significant reductions by Central Government in local authority funding and particularly adverse effect this would have on the most vulnerable in society;

 

b.      The ongoing pressures on the Council’s budget as a result of the significant reduction in local government funding and continued austerity measures by Central Government, increasing level of demand on services and the negative impact of the Government’s funding allocation damping mechanism, especially when compared to other local authorities such as Westminster and Kensington & Chelsea.  As a result the Leader informed Council of his intention to launch a Fair Funding for Enfield Campaign in order to campaign for a fairer funding mechanism.  The concerns highlighted in relation to the damping mechanism were shared by the Leader of the Opposition, who confirmed that the Opposition Group would support the campaign.

 

c.       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, reductions in funding and pressures created locally by the current economic climate, significant efficiencies had been achieved with a focus on the need to protect services to residents for as long as possible whilst also providing investment in key projects and priorities.

 

d.      That whilst the Administration was committed to protecting services for  residents, complying with legal obligations, making efficiencies where possible, investing in housing and jobs there were no longer, given the scale of funding reductions and savings already achieved, any easy options given the ongoing financial pressures on the Council.

 

f.       In terms of the proposed increase in Council Tax, this included the Government’s 2% social care precept and was similar to increases being proposed all over London and factored into the Government funding proposals.

 

g.      The approach towards management of the Council’s resources the Medium Term Financial Plan, which had been designed to 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.

 

5.         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. 

 

6.         The following issues highlighted by the Opposition Group:

 

a.         Whilst supportive of the proposed fair funding campaign, efforts to lobby the Government on the damping mechanism as applied to Enfield, and accepting the need for a 2% social care precept, they could not support the proposed 1.78% general increase in Council Tax.

 

b.         The need to acknowledge that the current Administration had, up until now, been able to avoid any increase in council tax due to the financial support provided by the Government and strong financial position inherited in 2010 from the previous Conservative Administration.

 

c.         The need to recognise and welcome the reduction in the Mayor of London’s precept and impact of the previous Labour Government’s management of the economy in terms of the deficit not having to be addressed.

 

d.       The concern highlighted at the level of borrowing being undertaken by the current Administration and potential impact this may have on the Council’s finances if the interest rates were to increase.  It was felt that any further borrowing should be restricted to those corporate projects classified as essential.

 

e.       The need to acknowledge that better planning and work to reduce revenue expenditure at an early stage could have mitigated the impact of the current budget reductions being proposed.

 

Following a long debate the recommendations in the report were put to the vote and approved with the following results.

 

AGREED

 

(1)     To note the Council’s Initial Efficiency Plan for new capital receipts (as detailed within Appendix 14 of the report).

 

(2)     To note the Government’s 4 year funding offer with an acceptance deadline of 14 October 2016 and that a further report would be presented to Members once sufficient details to make a recommendation had been made available by the Government.

 

(3)     To note the feedback from the Overview & Scrutiny Committee Budget Consultation meeting held on 1^st February 2016, as detailed in Appendix 1 of the report.

 

(4)     With regard to the revenue budget for 2016/17:

 

(a)     to set the Council Tax requirement for Enfield at £107.915m in 2016/17;

 

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

 

(5)     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)     The approved Capital Programme for 2016/17 to 2019/20 as set out in section 9 and appendix 9 of the report.  In addition to note the Indicative Capital Programme and agree that these indicative programmes be reviewed in the light of circumstances at the time.

 

(c)     The inclusion of £6.325m one off funding for the transition to a “cloud” solution for the delivery of Enfield’s IT services as well as a £5.25m first year allocation of funding for the on-going Capital Investment Programme in the 2016/17 Capital Budget.  The £6.325m had been recommended to Council by Cabinet on 10 February 2016.  It was noted that the ongoing capital investment programme had hitherto been funded from the IT investment fund.

 

(d)     To agree the Prudential Indicators, the Treasury Management Strategy, the Minimum Revenue Provision statement and the criteria for investments set out in section 9 and appendices 4 and 5 of the report.

 

(6)     To agree the Medium Term Financial Plan and adopt the key principles set out in paragraph 10.11 of the report.

 

(7)     With regard to the robustness of the 2016/17 budget and the adequacy of the Council’s earmarked reserves and balances:

 

(a)     To note the risks and uncertainties inherent in the 2016/17 budget and the Medium Term Financial Plan (as detailed in sections 10 and 11 of the report) and approve the actions in hand to mitigate them.

 

(b)     To note the advice of the Director of Finance, Resources and Customer Services regarding the recommended levels of contingencies, balances and earmarked reserves (as detailed in section 12 of the report) and to have regard to the Director’s statement (as detailed in section 13 of the report) when making final decisions on the 2016/17 budget.

 

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

 

(8)     To approve the Schools Budget for 2016/17 (as detailed within section 5.13 and Appendix 13 of the report).

 

(9)     To approve the Fees and Charges for Adult Social Care Services for 2016/17 (as detailed within section 10.15 and Appendix 11 of the report), subject to consultation.

 

(10)   That the New Homes Bonus be applied as a one-off contribution to the General Fund in 2016/17.

 

(11)   To approve the policy for the calculation of Minimum Revenue Provision (as detailed within Section 9 and appendix 4 of the report).

 

(12)   To approve the adoption of the new flexible use of capital receipts as announced by the DCLG for 2016/17 to 2019/20.

 

In accordance with the Standing Order Regulations 2014 the vote recorded in relation to the decisions in (3) – (12) above was as follows: 

 

For 54

 

Councillor Abdul Abdullahi 

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Chris Bond

Councillor Alev Cazimoglu

Councillor Nesil Cazimoglu

Councillor Erin Celebi

Councillor Lee Chamberlain

Councillor Bambos Charalambous

Councillor Jason Charalambous

Councillor Katherine Chibah

Councillor Don Delman

Councillor Nick Dines

Councillor Gurney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Nesimi Erbil

Councillor Peter Fallart

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Alessandro Georgiou

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Ertan Hurer

Councillor Suna Hurman

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Eric Jukes

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Derek Levy

Councillor Mary Maguire

Councillor Andy Milne

Councillor Terry Neville

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Vicki Pite

Councillor Michael Rye

Councillor George Savva

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Edward Smith

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Jim Steven

Councillor Doug Taylor

Councillor Ozzie Uzoanya

Councillor Glynis Vince

 

Against 0

 

Abstentions 0

 

(13)   With regard to the revenue budget for 2016/17, to set the Council Tax at Band D for Enfield’s services for 2016/17 at £1,144.17 (as detailed within paragraph 8.1 of the report), based on a 1.99% general Council Tax increase (to ensure equivalent increases in all bands this equates to 1.98% in practice)

 

In accordance with the Standing Order Regulations 2014 the vote recorded in relation to decisions (13) 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 Nesil Cazimoglu

Councillor Bambos Charalambous

Councillor Katherine Chibah

Councillor Sarah Doyle

Councillor Christiana During

Councillor Nesimi Erbil

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Suna Hurman

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Derek Levy

Councillor Mary Maguire

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Vicki Pite

Councillor George Savva

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Doug Taylor

Councillor Ozzie Uzoanya

 

Against:  21

 

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 Terry Neville

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Michael Rye

Councillor Edward Smith

Councillor Jim Steven

Councillor Glynis Vince

 

Abstentions 0

 

(14)   With regard to the revenue budget for 2016/17, to set the Council Tax at Band D for Enfield’s services for 2016/17 at £1,144.17 (as detailed within paragraph 8.1 of the report), based on a 2.00% Adult Social Care Precept.

 

In accordance with the Standing Order Regulations 2014 the vote recorded in relation to the decisions in (14) above was as follows: 

 

For 55

 

Councillor Abdul Abdullahi 

Councillor Daniel Anderson

Councillor Dinah Barry

Councillor Chris Bond

Councillor Yasemin Brett

Councillor Alev Cazimoglu

Councillor Nesil Cazimoglu

Councillor Erin Celebi

Councillor Lee Chamberlain

Councillor Bambos Charalambous

Councillor Jason Charalambous

Councillor Katherine Chibah

Councillor Don Delman

Councillor Nick Dines

Councillor Gurney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Nesimi Erbil

Councillor Peter Fallart

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Alessandro Georgiou

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Elaine Hayward

Councillor Robert Hayward

Councillor Ertan Hurer

Councillor Suna Hurman

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Eric Jukes

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Joanne Laban

Councillor Michael Lavender

Councillor Derek Levy

Councillor Mary Maguire

Councillor Andy Milne

Councillor Terry Neville

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Vicki Pite

Councillor Michael Rye

Councillor George Savva

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Edward Smith

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Jim Steven

Councillor Doug Taylor

Councillor Ozzie Uzoanya

Councillor Glynis Vince

 

Against 0

 

Abstentions 0

 

(15)   To agree the Fees and Charges for Environmental Services for 2016/17 (as detailed within section 10.14 and Appendix 12 of the report).

 

In accordance with the Standing Order Regulations 2014 the vote recorded in relation to decision (15) 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 Nesil Cazimoglu

Councillor Bambos Charalambous

Councillor Katherine Chibah

Councillor Gurney Dogan

Councillor Sarah Doyle

Councillor Christiana During

Councillor Nesimi Erbil

Councillor Krystle Fonyonga

Councillor Achilleas Georgiou

Councillor Christine Hamilton

Councillor Ahmet Hasan

Councillor Suna Hurman

Councillor Jansev Jemal

Councillor Doris Jiagge

Councillor Nneka Keazor

Councillor Adeline Kepez

Councillor Derek Levy

Councillor Mary Maguire

Councillor Ayfer Orhan

Councillor Ahmet Oykener

Councillor Vicki Pite

Councillor George Savva

Councillor Toby Simon

Councillor Alan Sitkin

Councillor Andrew Stafford

Councillor Claire Stewart

Councillor Doug Taylor

Councillor Ozzie Uzoanya

 

Against:  0

 

Abstentions: 21

 

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 Terry Neville

Councillor Anne Marie Pearce

Councillor Daniel Pearce

Councillor Michael Rye

Councillor Edward Smith

Councillor Jim Steven

Councillor Glynis Vince

 

Councillor Bernadette Lappage declared a Disclosable Pecuniary Interest in relation to this item and withdrew from the meeting for the duration of the debate and above decisions.

 

Councillor Joanne Laban declared a non-pecuniary interest on this item, but remained in the meeting for the duration of the debate and participated on the vote in relation to the above decisions.