Agenda item

a)     Cabinet – Reports 7 & 8 – 2010/11.

b)     General Purposes Committee – Reports 3 & 4 – 2010/11.

 

A.  Cabinet Reports 7 and 8 - 2010/11

 

Councillor Kober introduced Cabinet Reports 7 and 8- 2010/11 – Medium Term Financial Planning 2011/12 to 2013/14, and moved the recommendations contained therein,noting the earlier debate on the ‘state of the borough’. Councillor Goldberg seconded.

 

Councillor Gorrie, seconded by Councillor Wilson moved the following 5 budget amendments:

 

BUDGET AMENDMENT 1

 

Action on Crime

 

The Council’s budget consultation showed that crime was the biggest concern among local residents. The Labour budget proposes cuts to anti-crime initiatives such as funding for police overtime used to tackle high priority targets and local crime fighting projects. The Labour budget cuts funding for Metropolitan Police cover in Haringey’s parks and volunteers for British Trust for Conservation Volunteers. Overall these come to £400,000.

 

Liberal Democrats consider action on crime to be a priority and therefore propose reversing Labour’s cuts to the front-line community safety budget. Liberal Democrats would use £40,000 of this budget to maintain the Neighbourhood Watch Co-ordinator post in Haringey.

 

We propose that the balance of the investment should be spent priorities set by area committees in partnership with the local Police.

 

Revenue cost:         £400,000

 

To fund this action on crime we would challenge officers to deliver a further 4% saving on management costs in a full year. The annual cost of senior managers, on salaries over £50,000, is more than £20million per year. This proposal would save £800,000 in a full year, £400,000 in a part year

 

Management revenue saving        £400,000

                                                                   

BUDGET AMENDMENT 2

 

Investing in our young people

 

In a borough such as Haringey youth services are vital and much-valued by our young people and families. Labour plans a disproportionate 75% cut in this budget for these services.

 

Liberal Democrats would reverse £900,000 of the cuts proposed by Labour.

 

This investment will be paid for by improvements in our fostering service and reductions in spending on IT. 

 

It is well known that outcomes for children in foster care are better if they are placed close to their home. Haringey Council has relied on expensive out-of-borough agency foster placements which cost twice the amount of a Council foster placement. Liberal Democrats believe that a £300,000 first year investment in the fostering service would reduce the need to rely on expensive foster agencies would improve the outcomes for our vulnerable children could deliver gross savings of £700,000.

 

We accept this will be a challenge but we feel it is one worth setting given the service benefits it could achieve. 

 

Haringey currently spends £16.5million a year on running its IT. Labour is proposing less than a 6% real cut to this budget. Liberal Democrats believe that youth services are a greater priority than corporate IT and would take out further £500,000 from the IT budget.

                                                                                                Cost              Saving

 

                                          Youth Service revenue cost     £900,000

                                          Foster care revenue cost          £300,000

 

                                          Foster care revenue saving                              £700,000

                                          IT revenue savings                                             £500,000

                                     Total                                      £1,200,000    £1,200,000

 

BUDGET AMENDMENT 3

 

Action on the local economy and jobs

 

Long-term unemployment remains a major problem in Haringey. Labour is cutting £700,000 of funding from projects to tackle worklessness. Liberal Democrats believe that the Council should be committed to helping residents back into work. We would therefore invest £350,000 for job creation projects.

 

                                                                        Job creation cost                 £350,000

 

Liberal Democrats believe that the Council should fund the creation of real jobs for residents by removing the notional cost of vacant posts in its own hierarchy. At the end of the year there were 640 of these posts in the Council. We propose deleting the budget for 20 to make further staffing savings in non-front line services. 

 

Vacant post revenue saving          £675,000

 

Credit card fees cost the Council £100,000 a year. We propose that these costs should be covered by the card users when purchasing services.

 

Credit Card revenue saving        £100,000

 

Labour are going to increase the cost of parking for shoppers in our local high streets by 115%. This threatens the viability of local businesses and the jobs they provide. Liberal Democrats would use the balance of money saved from deleting vacant posts and charging for credit card use to reduce Labour’s increase in parking income. 

 

                                    Parking charges revenue cost   £425,000

 

BUDGET AMENDMENT 4

                                                           

Protecting our vulnerable older people

 

Labour will close front-line services for older people such as the drop-in centres at Willoughby Road, Abbysinia Court, the Irish Centre and Woodside House. Labour is also planning to close the luncheon club at Jackson’s Lane and cut funding for Day Centres. Liberal Democrats believe that this is a short-sighted decision which targets the most vulnerable older residents and will also place extra strain on the NHS and other Council services.

 

Liberal Democrats would reverse Labour’s cuts to older people’s day centres, drop-in centres and luncheon clubs.

 

                                                                        Revenue cost                       £171,000

 

Labour spends £500,000 on paying union officials. Liberal Democrats, whilst understanding the benefit to staff of union representation, believe that this cost is too high. We would reduce spending by 50%.

 

                                                                        Revenue savings                 £158,000

 

The Council currently spends more than £4million on “policy and performance”. The balance needed to protect older people’s services would be generated by increasing the proposed savings on “policy and performance” by 1%.

 

                                                                        Revenue saving                   £13,000

 

To provide a sustainable future for these older people’s service we propose a further reduction of £254,000 in policy and performance spending would be required in 2012/13.

 

BUDGET AMENDMENT 5

 

Protecting the Voluntary Sector

 

Liberal Democrats believe that the voluntary sector is crucial to supporting vulnerable people in our borough.

 

Labour is choosing to substantially cut voluntary sector funding. Liberal Democrats will invest £700,000 in a new fund to protect the voluntary sector.

 

                                                             Voluntary sector cost                      £700,000

 

Labour currently spends nearly £2million on communications. Liberal Democrats believe that, whilst the proposed budget has reduced spending, more needs to be done to cut the waste of taxpayers’ money on unnecessary glossy publications and Council propaganda. We would reduce the communications budget to £1million.

 

                                                             Revenue saving                               £529,000

 

Alexandra Palace currently receives a subsidy of over £2million per year. A reduction of 2% in its operating costs would  enable the Council to reduce its subsidy by £171,000. 

 

Saving in Alexandra Palace           Revenue Saving                               £171,000

 

A debate ensued and other Members contributed to the discussion. 

 

Councillor Goldberg, Cabinet Member for Finance and Sustainability responded to the proposals.

 

The amendments to the Motions were then voted on individually.

 

Budget amendment 1, on being put to the vote there were 21 in favour of the amendment and 31 against. The amendment was declared LOST.

 

Budget amendment 2, on being put to the vote there were 21 in favour of the amendment and 31 against. The amendment was declared LOST.

 

Budget amendment 3, on being put to the vote there were 20 in favour of the amendment and 32 against. The amendment was declared LOST.

 

Budget amendment 4, on being put to the vote there were 20 in favour of the amendment and 31 against. The amendment was declared LOST.

 

Budget amendment 5, on being put to the vote there were 21 in favour of the amendment and 31 against. The amendment was declared LOST.

 

In respect of the Cabinet reports 7 & 8 2010/11 as MOVED by Councillor Kober - On a vote there being 31 for, 21 against,  and 0 abstentions it was:

 

RESOLVED

 

1.      That the Cabinet Report 7 - 2010/11 be received and adopted; 

 

2.      That the Cabinet Report 8 - 2010/11 including –Medium Term Financial Planning 2011/12 to 2013/14 be received and adopted,      and that the following recommendations contained in the appendix to report number 8 be agreed:

                                            I.      that  the outcome of the consultation process on the Budget set out in Section 17 of the report be noted together with the ongoing consultation covering the proposals set out in Appendix 6;

 

                                          II.      that approval be given to  the overall Medium Term Financial Plan as set out in Appendices 1 and 2 of the report;

 

                                        III.      that approval be given to the new investment proposals set out in Appendix 3 of the report;

 

                                       IV.      that approval be given to the changes and variations set out in Appendix 4 of the report;

 

                                         V.      that approval be given to revisions to previously agreed investment and savings proposals set out in Appendices 5.1 and 5.2 of the report;

 

                                       VI.      that approval be given in principle to the new savings proposals set out  in Appendix 6 of the report with each of the proposals representing a decision which would in the future be considered by the responsible Directorate and, where appropriate, the responsible Cabinet member, and that where appropriate certain of these would be the subject of consultation and of equality impact assessment when they come to be considered and a decision as to whether or not to proceed would be taken at that time;  in the event that the relevant decision-maker decides not to proceed, with the result that savings were not realised, there would be an enquiry as to whether equivalent savings could be found elsewhere in the budget. Accordingly, Cabinet with the Leader’s agreement delegated final decisions on the savings to be adopted to Directorates and where appropriate to the relevant Cabinet members within their portfolio responsibilities, following appropriate consideration of the results of any consultation and with due regard to the Council’s duties under the Equality Act 2010;

                                     VII.      that it be noted that significant savings were still required to be identified to deliver a balanced budget in 2012-13 and 2013-14;

                                   VIII.      that approval be given to the level of un-earmarked general fund  reserves of £10.5million and specific and other reserves as set out in Appendix 7.1 of the report;

                                       IX.      that approval be given to the proposals for the Children and Young People’s Service Dedicated Schools Grant budget set out in Section 13 and Appendix 8 of the report;

                                         X.      that approval be given to the proposals for the Housing Revenue Account budget set out in Section 14 and Appendix 10 of the report;

                                       XI.      that approval be given to the housing rent increases at an average of £5.36 per week (6.5%);

                                     XII.      that approval be given to the housing tenant service charge changes set out in Section 14.13 of the report;

                                   XIII.      that approval be given to proposals for the capital programme and funding set out in Section 15 and Appendix 11 of the report;

                                  XIV.      that approval be given to proposed general fund budget requirement for 2011-12 of £286.169m net of Dedicated Schools Grant, subject to the decisions of precepting and levying authorities;

                                    XV.      that approval be given to the indicative criteria set out in Appendix 8 of the report to be applied by all Directorates both in the consultation concerning  and in the determination of the future funding of Third Sector organisations, and other organisations where appropriate.

3.      That the North London Waste Plan be approved for publication and subsequent submission to the Government.

 

4.      That authority to submit changes to the Plan in the run up to and during the public examination of the document in response to objectors’ submissions, requests from the Planning Inspector and any emerging evidence, guidance or legal advice be delegated to the Director of Urban Environment in consultation with the Cabinet Member for Planning and Regeneration and in conjunction with the other North London Boroughs.

 

5.      That Haringey’s Core Strategy and supporting documents including the schedule of proposed minor amendments and further changes to housing and employment land be submitted to the Secretary of State for examination by an Independent Planning Inspector.  

 

B)                 General Purposes Committee – Report Nos. 03 & 4 /2010 -11

 

          Councillor Meehan moved the recommendations contained in General Purposes Committee – Report Nos. 03 & 4 /2010 -11.

 

RESOLVED

 

That the General Purposes Committee – Report Nos. 03 & 4 /2010 -11 be received and adopted, and that the recommendation concerning the Treasury Management Statement for 2011/12 be approved.(Cabinet concur with this recommendation) The version at appendix 6 of the Medium Term Financial Planning report incorporates  the updated version.