Agenda item

Budget and Council Tax Setting 2017/18

Minutes:

Report CSD17036

The Director of Finance circulated the following supplementary information and amended recommendations -

“There were no changes to the final Mayoral precept accepted by the London Assembly on 20th February 2017.

Since the last meeting of the Executive there have been further changes on levies and the final position is shown in recommendation 2.1 (d) below.

On 20^th February details of the final Local Government Finance Settlement were published. There are no changes to the level of Settlement Funding compared to the provisional settlement. Final allocations of New Homes Bonus were also confirmed and Bromley’s allocation is £85k higher than previously estimated due to returned top-slice funding.

On 21^st February 2017 the Department for Communities and Local Government issued the conditions relating to the Adult Social Care precept:

2% increase requires information to ensure that adult social care budgets are not being decreased by a greater proportion than those of other non-ringfenced services and that the precept is being used for adult social care costs;

3% increase requires additional evidence that the extra funding will be used to improve the way that adult social care services are delivered;

as announced in the provisional settlement the precept increase must be no greater than 6% in total over the next three years.

Updated information has been received from Bromley CCG regarding the 2017/18 Better Care Fund. This provides an indicative allocation of £20,287k compared to £20,427k previously reported. £38k of this reduction relates to funding retained by the CCG resulting in a reduction of £102k in the Bromley element and the draft Central Contingency has been reduced to reflect this. Final allocations are awaited and any required changes will be reflected in the 2017/18 budget monitoring reports.

Members are requested to note that, since the last report to Executive the following items have been allocated from the Central Contingency to Portfolio budgets:

Impact of Pension Fund Triennial Valuation - £700k

Education SEN and Adult Social Care - £1,200k

Apprenticeship Levy - £350k

National Living Wage - £737k

Other Minor Variations - £10k

It is important to note that the 2017/18 Central Contingency sum includes significant costs not yet allocated to Portfolio budgets at this stage. Therefore, there will be further changes to the Central Contingency to reflect allocations to individual Portfolio budgets prior to publication of the Financial Control Budget.

The above changes will require the following proposed amendments to be made to the recommendations of the Executive:

Amended Recommendation (2.1)

(b) approves the draft revenue budgets for 2017/18 with the following amendments:

(iii) On 8^th February 2017, Executive approved the drawdown of £1m from the Central Contingency Budget for 2017/18 to meet the impact of the National Living Wage and associated increase in ceiling rates. Details are set out in a report entitled “Care Home and Extra Care Quality Monitoring Report 2016”.

(iv) an increase of £85k in New Homes Bonus set aside to support the revenue budget;

(v) a reduction of £102k Better Care Fund to be deducted from provision set aside in the Central Contingency;

(vi) a reduction of £2,997k in the 2017/18 Central Contingency to reflect allocations to Portfolio Budgets.

(d) approves the following provisions for levies to include in the budget for 2017/18:

	£’000
London Pension Fund Authority	461
London Boroughs Grant Committee	281
Environment Agency (Flood defence etc)	241
Lee Valley Regional Park	338
Total	1,321

(e) approves a revised Central Contingency sum of £15,177k to reflect the changes in (b) and (d);

(h) sets a 3.99% increase in Bromley’s council tax for 2017/18 (1.99% general increase plus 2% Adult Social Care Precept) compared with 2016/17 and a 1.5% increase in the GLA precept;

(i) notes the final position on the GLA precept, as accepted by the London Assembly on 20th February 2017.

Amended Recommendation (2.2)

Council Tax 2017/18 – Statutory Calculations and Resolutions (as amended by the Localism Act 2011).

Subject to 2.1 (a) to (k) above, if the formal Council Tax Resolution as detailed below is approved, the total Band D Council Tax will be as follows:

	2016/17 £	2017/18 £	Increase % (note #)
Bromley (general)	1,050.67	1,072.00	1.99
Bromley (ASC precept)	20.60	42.02	2.00
Bromley (total)	1,071.27	1,114.02	3.99
GLA	276.00	280.02	1.46
Total	1,347.27	1,394.04	3.47

# in line with the 2017/18 Council Tax Referendum Principles, the % increase applied is based on an authority’s ‘relevant basic amount of Council Tax’ (£1,071.27 for Bromley) – see paragraph 6 below.

Amended Recommendation (2.3):

(3) that the following amounts be calculated for the year 2017/18 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

(a) £530,785k being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

(b) £387,608k being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(4) to note that the Greater London Authority (GLA) has issued a precept to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

(6) That the Council hereby determines that its relevant basic amount of council tax for the financial year 2017/18, which reflects a 3.99% increase (including Adult Social Care Precept of 2%), is not excessive. The Referendums Relating to Council Tax Increases (Principles) (England) Report 2017/18 sets out the principles which the Secretary of State has determined will apply to local authorities in England in 2017/18. The Council is required to determine whether its relevant basic amount of Council Tax is excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.”

Councillor Stephen Carr, seconded by Councillor Colin Smith, moved acceptance of the recommendations, subject to the additional amendments -

“After allowing for the report from the Director of Finance the following amendments are proposed to the recommendations of the Executive set out in the Blue Book on pages 45-87.

Additional Recommendation (2.1):

(l) (i) sets aside funding of £500k as an earmarked reserve for Environmental Initiatives to be funded from underspends in the 2016/17 Central Contingency as detailed in the supplementary item;

(ii) agrees that the utilisation of this funding be delegated to the Executive Director of Environment and Community Services in consultation with the Environment Portfolio Holder.

(m) (i) sets aside funding of £250k as an earmarked reserve for

Planning/Planning Enforcement to be funded from underspends in the 2016/17 Central Contingency as detailed in the supplementary item;

(ii) agrees that the utilisation of this funding be delegated to the Executive Director of Environment and Community Services in consultation with the Renewal and Recreation Portfolio Holder.

(n) (i) sets aside funding of £200k as an earmarked reserve for the

Apprenticeship Scheme to be funded from underspends in the 2016/17 Central Contingency as detailed in the supplementary item;

(ii) agrees that the utilisation of this funding be delegated to the Director of Human Resources in consultation with the Resources Portfolio Holder.

(o) (i) agrees to transfer £1,500k of the 2016/17 earmarked reserve set aside from the non-recurring Transition Funding to an earmarked reserve for Children’s Social Care as detailed in the supplementary item;

(ii) agrees that the utilisation of this funding be delegated to the Deputy Chief Executive and Executive Director of Education, Care and Health Services in consultation with the Education and Children’s Services Portfolio Holder.”

The following amendments were moved by Councillor Angela Wilkins and seconded by Councillor Ian Dunn (with supporting detail in an appendix) -

“After allowing for the report from the Director of Finance the following amendments are proposed to the recommendations of the Executive set out in the Blue Book on pages 45-87.

The following changes be made to the recommended budget for 2017/18:

Additional Recommendation (2.1):

(l) sets aside funding of £3,225k from the growth/investment fund resources to meet one-off costs relating to:

(i) provision of temporary housing;

(ii) refurbishment of space for enterprise hub for start-ups;

(iii) economic growth and regeneration team and business investment fund.

(m) agrees that £1,670k be carried forward from underspends in the 2016/17 Central Contingency to fund costs in 2017/18 relating to:

(i) domiciliary care charging income;

(ii) transport services charging income;

(iii) grants to voluntary organisations;

(iv) foster carers allowances;

(v) council tax support to care leavers;

(vi) funding for street cleaning;

(vii) public protection team staffing;

(viii) staffing in planning (including enforcement).

(n) notes that any ongoing costs will be considered as part of the 2018/19 budget preparation.”

On being put to the vote, this amendment was LOST.

Accordingly, the recommendations of the Executive (with the changes proposed by the Director of Finance and as proposed by Councillor Stephen Carr and seconded by Councillor Colin Smith) were CARRIED as follows -

(1) That Council -

(a) Approves the schools budget of £80.5 million which matches the estimated level of Dedicated Schools Grant (DSG) after academy recoupment.

(b) Approves the draft revenue budgets for 2017/18 with the following amendments:

(i) As reported in the Draft 2017/18 Budget Report to Executive on 11^th January 2017, dedicated resources will be required for the joint tendering of a number of Environmental Services contracts over the next two years and other commissioning projects particularly around Children’s Services. The 2017/18 Central Contingency includes one-off funding of £500k towards these costs and it is requested that this be transferred to an earmarked reserve to ensure that the funding is available as and when the work is undertaken.

(ii) Members are requested to agree that the utilisation of this funding be delegated to the Director of Commissioning in consultation with the Resources Portfolio Holder.

(iv) an increase of £85k in New Homes Bonus set aside to support the revenue budget;

(v) a reduction of £102k Better Care Fund to be deducted from provision set aside in the Central Contingency;

(vi) a reduction of £2,997k in the 2017/18 Central Contingency to reflect allocations to Portfolio Budgets.

(c) Agrees that Chief Officers identify alternative savings within their departmental budgets where it is not possible to realise any savings reported to the previous meeting of the Executive held on 11^th January 2017.

(d) Approves the following provisions for levies to include in the budget for 2017/18:

	£’000
London Pension Fund Authority	461
London Boroughs Grant Committee	281
Environment Agency (Flood defence etc)	241
Lee Valley Regional Park	338
Total	1,321

(e) Approves a revised Central Contingency sum of £15,177k to reflect the changes in (b) and (d).

(f) Notes that the 2017/18 Central Contingency sum includes significant costs not yet allocated and there will therefore be further changes to reflect allocations to individual Portfolio budgets prior to publication of the Financial Control Budget.

(g) Approves the revised draft 2017/18 revenue budgets to reflect the changes detailed above.

(h) Sets a 3.99% increase in Bromley’s council tax for 2017/18 (1.99% general increase plus 2% Adult Social Care Precept) compared with 2016/17 and a 1.5% increase in the GLA precept.

(i) Notes the final position on the GLA precept, as accepted by the London Assembly on 20th February 2017.

(j) Approves the approach to reserves outlined by the Director of Finance (see Appendix 4).

(k) Notes that the Executive agreed that the Director of Finance be authorised to report any further changes directly to Council on 1^st March 2017.

(l) (i) Sets aside funding of £500k as an earmarked reserve for Environmental Initiatives to be funded from underspends in the 2016/17 Central Contingency as detailed in the supplementary item.

(ii) Agrees that the utilisation of this funding be delegated to the Executive Director of Environment and Community Services in consultation with the Environment Portfolio Holder.

(m) (i) Sets aside funding of £250k as an earmarked reserve for Planning/Planning Enforcement to be funded from underspends in the 2016/17 Central Contingency as detailed in the supplementary item.

(ii)Agrees that the utilisation of this funding be delegated to the Executive Director of Environment and Community Services in consultation with the Renewal and Recreation Portfolio Holder.

(n) (i) Sets aside funding of £200k as an earmarked reserve for the

Apprenticeship Scheme to be funded from underspends in the 2016/17 Central Contingency as detailed in the supplementary item.

(ii) Agrees that the utilisation of this funding be delegated to the Director of Human Resources in consultation with the Resources Portfolio Holder.

(o) (i) Agrees to transfer £1,500k of the 2016/17 earmarked reserve set aside from the non-recurring Transition Funding to an earmarked reserve for Children’s Social Care as detailed in the supplementary item.

(ii) Agrees that the utilisation of this funding be delegated to the Deputy Chief Executive and Executive Director of Education, Care and Health Services in consultation with the Education and Children’s Services Portfolio Holder.

(2) Council Tax 2017/18 – Statutory Calculations and Resolutions (as amended by the Localism Act 2011)

That, subject to (1) (a) to (k) above, if the formal Council Tax Resolution as detailed below is approved, the total Band D Council Tax will be as follows:

	2016/17 £	2017/18 £	Increase % (note #)
Bromley (general)	1,050.67	1,072.00	1.99
Bromley (ASC precept)	20.60	42.02	2.00
Bromley (total)	1,071.27	1,114.02	3.99
GLA	276.00	280.02	1.46
Total	1,347.27	1,394.04	3.47

(3) Council resolves as follows:

1. It is noted that the Council Tax Base for 2017/18 is 128,523 ‘Band D’ equivalent properties.

2. It is calculated that the Council Tax requirement for the Council’s own purposes for 2017/18 is £143,177k.

3. That the following amounts be calculated for the year 2017/18 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

(a) £530,785k being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

(b) £387,608k being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c) £143,177k being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year.

(d) £1,114.02 being the amount at 3(c) above, divided by (1) above, calculated by the Council in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year.

(4) It is noted that the Greater London Authority (GLA) has issued a precept to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

(5) That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2017/18 for each part of its area and for each of the categories of dwellings.

Valuation Bands	London Borough of Bromley £	Greater London Authority £	Aggregate of Council Tax Requirements £
A	742.68	186.68	929.36
B	866.46	217.79	1,084.25
C	990.24	248.91	1,239.15
D	1,114.02	280.02	1,394.04
E	1,361.58	342.25	1,703.83
F	1,609.14	404.47	2,013.61
G	1,856.70	466.70	2,323.40
H	2,228.04	560.04	2,788.08

(6) That the Council hereby determines that its relevant basic amount of council tax for the financial year 2017/18, which reflects a 3.99% increase (including Adult Social Care Precept of 2%), is not excessive. The Referendums Relating to Council Tax Increases (Principles) (England) Report 2017/18 sets out the principles which the Secretary of State has determined will apply to local authorities in England in 2017/18. The Council is required to determine whether its relevant basic amount of Council Tax is excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.

The following Members voted in favour of the motion –

Councillors Graham Arthur, Douglas Auld, Julian Benington, Nicholas Bennett, Ruth Bennett, Eric Bosshard, Katy Boughey, Lydia Buttinger, Stephen Carr, David Cartwright, Peter Dean, Simon Fawthrop, Peter Fortune, Will Harmer, Samaris Huntington-Thresher, William Huntington-Thresher, Charles Joel, David Livett, Kate Lymer, Russell Mellor, Alexa Michael, Peter Morgan, Keith Onslow, Tony Owen, Angela Page, Sarah Phillips, Tom Philpott, Chris Pierce, Neil Reddin, Catherine Rideout, Charles Rideout, Michael Rutherford, Richard Scoates, Colin Smith, Diane Smith, Melanie Stevens, Tim Stevens, Teresa Te, Michael Tickner, Michael Turner, Pauline Tunnicliffe and Stephen Wells.

The following Members abstained –

Councillors Vanessa Allen, Kathy Bance, Kevin Brooks, Ian Dunn, Peter Fookes, Hannah Gray, Ian Payne, Angela Wilkins and Richard Williams.

(The meeting having lasted three hours, the Mayor proposed that it be extended for up to 30 minutes to deal with the remaining business, and this was agreed.)

Supporting documents: