Agenda item

(Report of the Director of Corporate Resources – To be introduced by the Cabinet Member for Finance and Carbon Reduction): To consider and agree the proposed budget package for 2012/13 and later years.

REPORT TO FOLLOW

Cabinet considered a report that presented a proposed budget package for 2012/13 and later years. The report also included an overview of the Medium Term Financial Plan (MTFP), which covered the three years to March 2015, including a revised assessment of the General Fund, Dedicated Schools Grant (DSG), Housing Revenue Account (HRA) and the Capital Programme.

It was noted that the proposals included funding from the Capital Programme to enable Alexandra Palace to develop of long term strategy and regeneration and development programme. This was considered essential in order to form a long term approach that would help reduce the financial support that the Council had a statutory obligation to provide.

RESOLVED:

1. That the recommendations of the Overview and Scrutiny Committee on the chosen three themes of the draft revenue proposals agreed at the Cabinet meeting held on 4 October 2011 (set out in paragraphs 7.9 and 7.12 and Appendix 7 of the report) be noted.

2. That the consultation responses received to date on the draft revenue proposals agreed at Cabinet on 4 October 2011 (set out in paragraphs 7.1 to 7.8 and Appendix 8 of the report) be noted.

3. That the implications for the Council of the Provisional Local Government Finance Settlement 2012/13 (set out in paragraphs 8.4 to 8.31 and Appendix 4 of the report) be noted.

1. That the indicative level of the Dedicated Schools Grant (DSG) for 2012/13 (set out in paragraph 12.3 of the report) be agreed.
2. That the expected Pupil Premium allocation of £10.1m (set out in paragraph 12.4 of the report) be noted.
3. That the approach to universal grants and targeted grants (set out in paragraph 12.5 of the report) be agreed.
4. That the treatment of the one off allocations of £522k in 2012/13 (as set out in paragraph 12.7 of the report) be endorsed.
5. That the intention of the Schools Forum to consult and to propose changes to the Formula following consultation (as set out in paragraph 12.8 of the report) be noted.
6. That the funding of the items (as set out in paragraph 12.10 of the report) from the available headroom be agreed.
7. That the approach to the use of headroom (as set out in paragraph 12.12 of the report) be agreed.

5. That the changes in the financial management of the HRA from 1 April 2012 (as set out in paragraphs 2.1 to 2.5 of the report) be noted.

6. That the background to the Stock Options Appraisal (as set out in paragraphs 3.1 to 3.7 of the report) be noted.

7. That the proposed housing rent increases (as set out in paragraphs 4.1 to 4.10 of Appendix 5 of the report), which were subject to consultation, be noted.

8. That the proposed tenants’ service charges (as set out in paragraphs 5.1 to 5.3 of Appendix 5), which were subject o consultation, be noted.

9. That the methodology to be used to separate the outstanding debt on 1 April 2012 between the HRA and the General Fund (as set out in paragraphs 6.1 to 6.8 of Appendix 5) be agreed.

10. That the draft HRA Budget 2012/13 and MTFP 2012-15 for recommendation to the Council at its meeting in February 2012 (as set out in paragraphs 7.1 to 7.7 of Appendix 5 of the report) be approved.

11. That draft proposals to be recommended to the Council at its meeting in February 2012 for the Council’s Capital Programme for the period 2012-15 (as set out in paragraph 14 and Appendix 6 of the report) be approved.

12. That it be noted that the Cabinet would, at its meeting in February, assess the need to make additional proposals for the MTFP 2012-15, to be recommended to the Council for approval, in the light of circumstances at that time.

13. That draft proposals, to be recommended to the Council at its meeting in February 2012 for the Council’s MTFP 2012-15 (as set out in Appendices 1, 2 and 3 of the report) be approved.

14. That it be noted that savings still had to be identified to deliver a balanced budget for 2013/14.