Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on
Minutes:
The Committee considered the following reports on the Part 1 agenda for the meeting of the Executive on Wednesday 13th February 2019.
(5) 2019/20 COUNCIL TAX
Report FSD190
The Committee considered a report identifying the final issues affecting the 2019/20 revenue budget and seeking recommendations to the Council on the level of the Bromley element of the 2019/20 Council Tax and Adult Social Care precept. Confirmation of the final GLA precept would be reported to the Council meeting on 25th February 2019. The report also sought final approval of the ‘schools budget’. The approach reflected in the report was for the Council to not only achieve a legal and financially balanced budget in 2019/20
but to have measures in place to deal with the medium term financial position (2020/21 to 2022/23).
In response to a question, the Director of Finance confirmed that earlier in the day he had received notice that the disapplication request made to the DfE for the transfer of £1m from the Schools’ Block to the High Needs Block of the Dedicated Schools Grant (DSG) had been refused. The Committee noted that as a result of this the recommendations to the Executive would require modification and these would be reported to the Executive on 13th February along with some other minor changes.
A Member raised some concerns around the process for scrutiny of the Schools’ budget, and the £788k that had been received from the DfE in 2018/19 and 2019/20 to support high needs provision. In response to a question the Director of Finance confirmed that the funding shortfall of £212k (the difference between the £1m disapplication request and the £788k received from the DfE) would need to be addressed.
The Director of Finance explained that prior to 2014 the Government had funded high needs placements through the Schools’ Budget. The latest guidance from the DfE was that high needs placements should continue to be funded through the Schools Budget and not through Council Tax. The implication of this was that there needed to be a plan in place to ensure that any deficit in high needs funding was addressed via the Schools’ budget, not general Council tax. The disapplication request that was made to the DfE highlighted the Council’s position that there was insufficient high needs funding. As a result of this the Council had agreed to make a contribution to high needs in recognition that any deficit could not be recovered from schools over three years. This council contribution had been agreed in spite of the DfE guidance and the disapplication request was to mitigate some of the additional costs the Council was incurring. For the purposes of clarity, the Director of Finance confirmed that the Council had given a commitment to fund £2m for high needs placements from the General Fund. The Committee requested a note be circulated following the meeting outlining for 2019/20 the amount of the High Needs Block and the Councils contribution for high needs which would equate to the total spend on high needs. In addition Members also asked for information concerning the use of the additional £788k for high needs placements in 2018/19. The Chairman of the Education, Children and Families Select Committee suggested that an explanation of the DSG and its 4 funding blocks would also be of benefit to Members.
Action Point 24: That a note be circulated explaining the 4 blocks of the DSG and outlining for 2019/20 the amount of the High Needs Block and the Councils contribution for high needs which would equate to the total spend on high needs. In addition to information concerning the use of the additional £788k for high needs placements in 2018/19.
The Committee noted that it would now be necessary for the Council to reflect on the outcome of the disapplication request and consider its response. Members further noted that further cost pressures had been created from 2018/19 as a result of the extension of the age of eligibility for SEN support to 25 years old. This was an additional demand that was not supported by any additional funding.
The Director of Finance confirmed that the schools would not be contributing £1m to the High Needs Block of the DSG in 2019/20 and that work with schools would now need to begin in order to address longer-term issues and the guidance from the DfE in terms of funding high needs placements from the Schools Budget.
The Chairman of the Education, Children and Families Select Committee noted that the Select Committee’s report on the Education Budget would be considered by Full Council on 25th February. The report included a recommendation that there should be further lobbying through London Councils. The Leader of the Council confirmed that the issue had been discussed at London Council and there was unanimity that the London Borough had to unite in tacking the issue of underfunding as the current position was unsustainable and changes were clearly required.
Turing to the issue of the proposed Council Tax increase, the Director of Finance confirmed that the Government had given special dispensation for the 2.99% council tax increase to reflect current inflationary pressures. There had been no indication of dispensations for future years being granted and inflation was predicted to decrease in future years. Furthermore, there had been no indication from Government of the Adult Social Care precept being granted for 2020/21. The Committee noted that a number of local government financial reviews were due in 2020/21 and this made budget planning difficult as there were currently no indication of the 4 year funding allocation.
RESOLVED: That the Executive be recommended to recommend to Council that it:
1. Approves the schools budget of £77.644m which matches the estimated level of Dedicated Schools Grant (DSG), after academy recoupment;
2. Approves the draft revenue budgets (as in Appendix 2) for 2019/20;
3. Agrees that Chief Officers identify alternative savings/mitigation within their departmental budgets where it is not possible to realise any savings/mitigation reported to the previous meeting of the Executive held on 16th January 2019;
4. Approves a contingency sum of £11,669k;
5. Approves the following provisions for levies for inclusion in the budget for 2019/20:
|
|
£’000 |
|
Local Pension Partnership * |
469
|
|
London Boroughs Grant Committee |
249
|
|
Environment Agency (Flood defence etc.) * |
252
|
|
Lee Valley Regional Park * |
323
|
|
Total
|
1,293 |
* Provisional estimate at this stage
6. Notes the latest position on the GLA precept, which will be finalised in the overall Council Tax figure to be reported to full Council;
7. Considers the “Bromley element” of the Council Tax for 2019/20 to be recommended to the Council, including a general increase and the Adult Social Care Precept, having regard to possible ‘referendum’ issues;
8. Approves the approach to reserves outlined by the Director of Finance;
9. Notes that any decision on final council tax level will also require additional “technical” recommendations, to meet statutory requirements, which will be completed once the final outcome of levies are known at the full Council meeting;
10.Agrees that the Director of Finance be authorised to report any further changes directly to Council on 25th February 2019.
(6) CAPITAL PROGRAMME MONITORING Q3 2018/19 AND CAPITAL STRATEGY 2019 TO 2023
Report FSD19020
The Committee considered a report providing an update on the Council’s Capital Strategy. The report also summarised the current position on capital expenditure and receipts following the third quarter of 2018/19 and presented the new capital schemes in the annual capital review process for approval.
RESOLVED: That the Executive be recommended to:
1. Note the report, including a total rephasing of £14.2m from 2018/19 into future years, and agree a revised Capital Programme;
2. Approve the following amendments to the Capital Programme:
(a) Increase of £116k to the Basic Need scheme, funded by £3k and 113k, from the remaining balances on the Langley Park Boys School (BSF) scheme and The Highway Primary (partial rebuild) scheme as detailed in the report;
(b) Increase of £405k to the Capital Maintenance in Schools scheme, funded by £386k and £19k, from the remaining balances on the Suitability / Modernisation issues in schools and Universal Free School schemes as detailed in the report;
(c) Addition of £233k DFG funding to the Capital programme as detailed in the report;
(d) Increase of £115k to the Carbon Management Programme as detailed in the report.
3. Recommend to Council the inclusion of the new scheme proposals listed in Appendix C in the Capital Programme.
(7) OPERATIONAL BUILDING MAINTENANCE BUDGETS AND PLANNED PROGRAMME 2019/20
Report DRR19/011
The Committee considered a report setting out the proposed maintenance budgets and planned programme for 2019/20.
A Member noted that reports for the past three years had included the comment that “…pressure on this budget increases as fewer planned maintenance projects are undertaken and the buildings become more dilapidated”. The Member asked that following the meeting information concerning the action being taken to monitor the status of the buildings be provided. Further to this, the Chairman requested that the Executive be provided with a year-on-year comparison of the maintenance of the buildings for the past 3 years.
In relation to the recommendation to delegate authority to the Director of Regeneration, it was agreed that the following should be added to the third recommendation: “where appropriate in consultation with Ward Members” in order to ensure that Ward Councillors received notification.
Councillor Nicholas Bennett, the Council’s Heritage Champion, noted that the windows in the Old Palace (Civic Centre Site) were in a poor state of repair. It was agreed that the Director of Regeneration would be asked to provide an update to the Heritage Champion following the meeting.
Action Point 25: That the Director of Regeneration be asked to provide the Heritage Champion (Councillor Nicholas Bennett) with an update on the plans for the maintenance of the windows in the Old Palace.
In response to a question concerning the programme for the maintenance of the Civic Centre site, the Portfolio Holder for Resources, Contracts and Commissioning confirmed that there was a backlog of repairs and renewal of the site which had occurred during the period of uncertainty around the future of the site. The decision had now been taken for the Council to remain on the site and £200k had been set aside for urgent improvement although longer-term investment was required.
The Chairman of the Renewal Recreation and Housing PDS Committee confirmed that the last update concerning the cladding on the Churchill theatre had been provided before Christmas. This had suggested that a planning application would be submitted early in 2019. The Chairman of the Renewal Recreation and Housing PDS Committee agreed to raise the issues at the next meeting of that Committee.
RESOLVED: That Executive be recommended to:
1. Approve an overall expenditure of £2.135m for the building Maintenance budget in 2019.2020, subject to the Council agreeing the budget;
2. Approve the planning programme in Appendix A of the report; and
3. Delegate authority to the Director of Regeneration, where appropriate in consultation with Ward Members, to vary the programmes to accommodate any change in the approved budget or where such action is considered necessary to either protect the Council’s assets or make the most effective use of resources.