Agenda item

Cabinet considered a report, introduced by the Cabinet Member for Finance and Carbon Reduction, which set out the strategic financial issues for the three year planning period to 2015/16. The report also proposed the process for setting the Council’s 2013/14 Budget and Medium Term Financial Plan (MTFP) to 2015/16.

The Cabinet Member noted that the Council was yet to be notified of the provisional Local Government Finance Settlement and that until this was known there would be uncertainty with regard to the budget position for 2013/14. This, combined with changes to the payment of Council Tax Benefit, meant that there may be further re-prioritisation of resources during the budget setting process in the new year.  

In response to concerns expressed regarding increased charges to schools for school swimming lessons and the impact of the deletion of the mobile library service the Leader requested that the relevant Cabinet Members took into consideration the points made during the budget setting process.

RESOLVED:

1. That the current known changes to Local Government Finance, set out in Section 7 of the report and the associated modelling assumptions, be noted.

2. That it be noted that the assumptions would be refined after the provisional Local Government Finance Settlement was published in late December 2012.

3. That the proposed housing rent increases, as set out in Appendix 5 of the report, which were subject to consultation, be noted.

4. That the proposed tenants service charges, set out in Appendix 5 of the report, which were subject to consultation, be noted.

5. That the Housing Revenue Account (HRA) and Medium Term Financial Plan (MTFP) 2013 – 2016, as described in Appendix 5 of the report, be noted.

6. That the draft proposals, to be recommended to the Full Council at its meeting in February 2013 for the Council’s Capital Programme for the period 2013/14 – 2015/16, as set out in paragraph 12 and Appendix 6 of the report, be approved.

7. That the draft proposals, to be recommended to the Full Council at its meeting in February 2013, for the Council’s MTFP 2013/14 – 2015/16, subject to the announcement of the provisional Local Government financial settlement (Appendices 1-4), be approved.

8. That the significant reform of school funding being implemented in 2013/14 (as detailed in paragraph 10.1 of the report) be noted.

9. That the projected level of Dedicated Schools Grant as £226.244m (detailed in paragraph 10.12 of the report) be agreed.

10. That it be noted that an expected pupil premium allocation of £12.793m for 2013/14 (as detailed in paragraph 10.6 of the report) be noted.

11. That projected income from the Education Funding Agency (EFA) to fund post 16 education in Haringey schools in 2013/14 (as set out in paragraph 10.7 of the report) be noted.

12. That the proposed allocation of the Schools Block recommended to the Schools Forum on 6 December 2012, including the elements set out below, be noted:

Ø  Growth Fund £1.5m

Ø  Centrally retained budgets £3.602m

Ø  Delegation to schools through the R-16 formula £199.550m

Alternative Options Considered

The report proposes that the Cabinet should consider draft proposals to deliver a balanced and sustainable MTFP at its meeting in February 2013. This is in line with the process adopted in 2012.

This approach was developed in order to respond to a series of central Government funding cuts that were unprecedented in scale. Additionally, the Council has to plan for a large scale change in the way Local Government is financed, with very late delivery of the provisional details.

Cabinet could choose to adopt a less demanding pace and examine options at a later stage. There would be more certainty over the exact level of funding if a delayed approach was adopted, but there would be less time for robust development and consideration of options, leading to delays in implementation and delivery.

Reasons for Decision

A decision is required to confirm draft savings and investment proposals designed to balance the 2013/14 budget and the Medium Term Financial Plan. Approval of this decision by Cabinet will allow delivery plans to be developed in advance of the Local Government Finance Settlement, allowing a balanced budgetary position to be presented to Cabinet in February in order that it can be recommended to Council.