Councillors and committees

Agenda item

Medium Term Financial Plan 2019-20 to 2022-23 and Detailed Budget and Council Tax 2019-20

To consider the report and its recommendations at Appendix A of the agenda, including recommendations of the Finance and Contracts Committee relating to the Treasury Management Annual Strategy Report 2018-2019, Pay Policy and Members Allowances.

 

Members are requested to bring the pack  “Budget Report 2019/20 to 2022/23” (which has been previously circulated as a separate document) with you to the meeting.

Minutes:

To enable the Council to approve the budget and set the Council Tax for 2019/20, the Council considered a report (at Appendix A of the agenda), in association with the ‘Budget Report 2019/20 to 2022/23’ pack which had been published and circulated separately to Members on 21 January. 

The Budget Report pack included detailed information in the following Annexes:

Annex 1 - Budget Risk 2019/20

Annex 2 - Reconciliation of 2018/19 Budget to proposed 2019/20 Budget

Annex 3 - Statutory Council Tax Calculation

Annex 4 - Statutory Parking and Traffic Accounts

Annex 5 - Budget Growth 2019/20 to 2022/23

Annex 6 - Budget Reductions (Savings) 2019/20 to 2022/23

Annex 7 - Summary of budget by Service / Function

Annex 8 - Summary of budget by expenditure type

Annex 9 - Flexible use of capital receipts strategy

Annex 10 - HRA Budget

Annex 11 - Capital Strategy

Annex 12 – Treasury Management

 

The Budget proposals for the 2019/20 financial year included the following key features:

·           Growth and investment in services to meet our key priorities and demand pressures of £7.182m

·           The identification of £12.099m of revenue savings.

·           An average council tax at band D of £1,551.19 , a 4.99 percent increase in the Council Tax set by Kingston Council including the Adult Social Care precept.

·           An increase in the band D council tax set by Sadiq Khan, Mayor of London, for Greater London Authority services to £320.51, an increase of 8.9% on the previous year.

·           An in-year budget contingency of £445k to provide additional prudent cover in light of increasing service demand risks and manage any pressures and service issues created by the UK exit arrangements from the European Union.

·           An increased general fund reserve of £16.592m for 2019/20, an increase of £3.5m on this year’s figure of £13.092m to ensure prudent cover for managed risks.

·           An estimated total of £31m of reserves, including £10m of earmarked reserves available for specific purposes in 2019/20 including increasing the resources available to invest in transforming the Council to meet the continuing financial and service demand challenges.

·           A General Fund Capital Programme to provide infrastructure investment in Kingston.  The capital programme over four years from 2019/20 will be £168m.

·           The provision of £22.849m of resource, the full government allocation, for Special Educational Needs Services for Kingston.

·           A Budget designed support the Council in meeting the significant challenges it faces and ensuring services for its residents and some of our most vulnerable communities are protected against a backdrop of increasing demand in terms of volume and complexity and decreasing resources available to fund those services.

 

In accordance with the Local Government Act (2003) Section 25, the report includes the report of the Council’s Chief Financial Officer (as defined by section 151 of Local Government Act 1972) on the “robustness” of the financial estimates which have been used in calculating the Council Tax for 2019/20 and the adequacy of the level of reserves.  Assurance was provided that risk has been appropriately managed and that there is a legitimate expectation that likely eventualities will be provided for within the budget. 

Service specific budget proposals had been discussed at the Strategic Housing and Planning Committee (29 January), the Community Engagement Committee (5 February 2019), the Children’s & Adults Care & Education Committee (7 February) and the Environment and Sustainable Transport Committee (12 February), and with consideration of the overall draft budget by the Finance and Contracts Committee (on 14 February) which had made the appropriate recommendations to Council.  The report to the Finance and Contracts Committee was attached to the report to Council as Annex 1 which in turn had three Annexes:

- Annex A - Pay Policy

- Annex B - Schools Budget report which in turn had three Enclosures

(Enclosure 1 =Total Dedicated Schools Grant; Enclosure 2 = Schools Formula Rates;

Enclosure 3 = Schools Allocations)

- Annex C - Council Tax calculation

Attached at Annex 2 to the report to Council was the late material which had been reported to the Finance and Contracts Committee, including comments from service Committees and comments arising from the consultation with Business Ratepayers which was held on 7 February 2019.

The Director, Corporate and Commercial was authorised by the Committee to make any necessary changes to the GLA precept (arising from the GLA Budget meeting on 25 February) and the Wimbledon and Putney Common Conservators levy in the Council Tax Calculation (in Annex C) prior to submission to Budget Council; once the final decisions have been confirmed by these bodies.  In the event no amendments to the Council Tax calculation in Annex C had arisen.

 

(1) In order for the proposals to be presented in detail at the Council meeting by the Portfolio Holder for Finance,  Councillor Alison Holt (in place of the Leader of the Council), in accordance with Standing Order 16 it was resolved  that Standing Order 10(9) be suspended to allow the Portfolio Holder to speak for longer than 4 minutes.

 

(2) Councillor Alison Holt proposed and the Leader of the Council, Councillor Liz Green, seconded the recommendations to the Council set out in the report at Appendix A to the agenda.

 

(3) Councillor Sharron Falchikov-Sumner proposed an amendment, which was seconded by the Leader of the Opposition, Councillor Kevin Davis, as follows:

 

“Council notes the council tax rise of 4.99% - the maximum allowed without a referendum - and that £3.5 million of the revenue generated through the increase is being placed in the Council's reserves.

 

Council calls for:

 

  1. The administration to set a target for the Council to set a budget based on a 0% council tax rise 2020/21.
  2. A sum of £240,000 (Targeted Children’s Centre model page 46 Annex 6 - line 125) to be allocated to fund the four childrens' centres earmarked by the administration for closure in 2019/20 from the increase of £445,000 in the in-year contingency budget (page 36 Annex 5 line 10.) reducing that increase £205,000. In the MHCLG announcement the Council will receive an additional  £105,000 in 2019/20 to cover the costs of Brexit
  3. A freeze on councillor allowances in 2019/20 a part year impact of £7,000.
  4. Reinstate the tree officer post earmarked by the administration to be deleted in 2018/19 at the additional cost of £52,000 funded from the freeze in members allowances of £7,000 and £45,000 further reducing the growth in the in-year budget contingency to £160,000 (page 36 Annex 5 line 10).”

 

(4) The Mayor adjourned the meeting from 9:40pm – 9:55pm to allow the Council to consider the amendment.  On the Council reconvening, the Mayor exercised discretion to waive the limit to allow more than 10 speakers in the ensuing discussion. 

 

(5) After debate, the amendment was put to the vote and was declared defeated –

 

Voting: For: 1 Member of the Council (Councillor Falchikov-Sumner)

Against: 34 Members of the Council (The Mayor, Councillor Thay Thayalan, the Deputy Mayor, Councillor Olivia Boult, and Councillors Zain Abbas, Sushila Abraham, Stephanie Archer, Kim Bailey, Tricia Bamford, Mark Beynon, Tim Cobbett, Emily Davey, Lorraine Dunstone, Mark Durrant, Simon Edwards, Sam Foulder-Hughes, Hilary Gander, Dennis Goodship, Liz Green, Jaesung Ha, Lesley Heap, Alison Holt, Caroline Kerr, Andreas Kirsch, Katrina Lidbetter, Rebekah Moll, Munir Ravalia, Dave Ryder-Mills, Anita Schaper, Malcolm Self, John Sweeney, Jon Tolley, Olly Wehring, Diane White, Annette Wookey, Sharon Young, and Yogan Yoganathan)

Abstaining: 8 Members of the Council (Councillors Roy Arora, David Cunningham, Kevin Davis, Ed Fram, Ian George, Jason Hughes, Maria Netley and Nicola Sheppard)

 

(6) The recommendations set out in the report at Appendix A to the agenda were put to the meeting and, after further debate, it was:

 

Resolved that:

 

[References to ‘the report’* are to the report at Annex 1 to Appendix A in the Council agenda pack.  Other references are to the Budget Report Pack.]

 

1.            the budget proposals and Council Tax for 2019/20 as set out in the Budget Report Pack report and its annexes be approved;

2.            the relevant officers be authorised to take necessary action to deliver the agreed budget and service changes, including increasing relevant fees and charges in line with inflation;

3.            in accordance with the requirements of the Local Government Act 2003, the comments of the Director of Corporate and Commercial be noted in regard to the robustness of estimates and the level of reserves and balances (as set out in the section “Comments of the Director of Corporate and Commercial (S151 Officer) ” in paragraphs 25 to 31 of the Budget Report Pack);

4.            the new Capital Strategy including the detailed capital programme for 2019/20 to 2022/23 (as set out in Annex 11 to the Budget Report pack) and the Treasury Strategy including the Annual Investment Strategy, prudential indicators and the Minimum Revenue Provision (MRP) policy (as set out in Annex 12 to the Budget Report pack) be approved;

5.            the pay policy at Annex A to the report* be approved;

6.            the Schools Budget for 2019-20 be approved in line with paragraph 17 and Enclosure 1 of Annex B to the report*;

7.            the proposals outlined for the Central School Services Block including the transfer of £27k to the High Needs Block (ref. paras 26-28 of Annex B to the report*) be approved;

8.            the proposals outlined for the Early Years Block, including the increase of the SEN Inclusion Fund to allow for high needs support for early years children (ref. paras. 29 - 35 of Annex B to the report*) be approved;

9.            the proposals outlined for the High Needs Block (ref paras. 36-39 of Annex B to the report*) be approved; and

10.         the proposals outlined for the Schools Block (ref. paras 20-25 of Annex B to the report*) and the Schools Funding Formula outlined in Enclosure 2 of Annex B to the report and the Schools Allocations in Enclosure 3 of Annex B to the report*, including a Minimum Funding Guarantee of -1.5% per pupil (ref. paras 22-23 of Annex B to the report*) be approved;

11.         It be noted that on 15 January 2019, under delegated powers, the Director of Corporate and Commercial approved the Council Tax Base for 2019/20 for the whole Council area as 62,806.2 [Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the “Act”); and

12.         the following amounts (as set out in Annex C to the report*) be calculated for the year 2019/20 in accordance with Sections 31 to 36 of the Local Government Act 1992:

 

 

£

a)

The aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act, taking into account the total of special items included in e) below.

 

451,894,638.00

 

b)

The aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act

354,470,587.00

 

c)

The amount by which the aggregate at a) above exceeds the aggregate at b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. [Item R in the formula in Section 31A(4) of the Act].

  97,424,051.00

 

d)

The amount at c) above [Item R], all divided by Item T (1 above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year

           1,551.19

 

e)

The expenses of meeting the levy issued to it by the Wimbledon and Putney Commons Conservators shall be the aggregate of all special items referred to in Section 34(1) of the Act.

 

         46,859.91

 

f)

The amount at d) above less the result given by dividing the amount at e) above by Item T (1 above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special items relate

           1,550.44

 

g)

The amount given by adding the amount at f) above to the result of the amount at e) above divided by the council tax base for the part of the Council’s area defined by the Wimbledon and Putney Commons Act 1871, calculated by the Council, as the basic council tax for dwellings in those areas to which the special items relate.

 

 

 

           1,580.34

 

h)

 

 

Valuation Bands

 

 

 

Part of the Council’s Area

 

Part of the Council’s Area to which special items as defined in (e) above relate

 

£

 

 

All other parts of the Council’s Area

 

 

£

A

1,053.56

1,033.63

B

1,229.15

1,205.90

C

1,404.75

1,378.17

D

1,580.34

1,550.44

E

1,931.53

1,894.98

F

2,282.71

2,239.52

G

2,633.90

2,584.07

H

3,160.68

 

3,100.88

being the amounts given by multiplying the amounts at f) and g) above by the number which, in the proportion set out in Section 5(1) of the Act is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council in accordance with Section 36(1) of the Act as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

i)

That it be noted that for the year 2019/20, the Greater London Authority has stated the following amounts in precepts issued to the Council in accordance with Section 40 of the Act for each of the categories of dwellings shown below:

 

 

Valuation Bands

 

A

B

C

D

E

F

G

H

 

GLA Precept

£

213.67

249.29

284.90

320.51

391.73

462.96

534.18

641.02

 

j)

That having calculated the aggregate in each case of the amounts at (h) and (i) above, the Council in accordance with Section 30(2) of the Act hereby sets the following amounts of Council Tax for the year 2019/20 for each of the categories of dwelling shown below:

 

 

 

Valuation Bands

 

 

 

A

B

C

D

E

F

G

H

 

Part of the Council’s Area

 

Part of the Council’s Area to which special items as defined in e) above relate

£

1,267.23

1,478.44

1,689.65

1,900.85

2,323.26

2,745.67

3,168.08

3,801.70

 

 

 

All other parts of the

Council’s Area

 

£

1,247.30

1,455.19

1,663.07

1,870.95

2,286.71

2,702.48

3,118.25

3,741.90

k)

To note that, in accordance with Section 52ZB of the Local Government Finance Act

1992, the Council’s relevant basic amount of Council Tax for 2019/20 is not

excessive in accordance with principles approved by the Secretary of State under

Section 52ZC

 

 

 

 

 

Voting: For: 34 Members of the Council (the Deputy Mayor, Councillor Olivia Boult, and Councillors Zain Abbas, Sushila Abraham, Stephanie Archer, Kim Bailey, Tricia Bamford, Mark Beynon, Tim Cobbett, Emily Davey, Lorraine Dunstone, Mark Durrant, Simon Edwards, Sam Foulder-Hughes, Hilary Gander, Dennis Goodship, Liz Green, Jaesung Ha, Lesley Heap, Alison Holt, Caroline Kerr, Andreas Kirsch, Katrina Lidbetter, Rebekah Moll, Munir Ravalia, Dave Ryder-Mills, Anita Schaper, Malcolm Self, John Sweeney, Jon Tolley, Olly Wehring, Diane White, Annette Wookey, Sharon Young, and Yogan Yoganathan)

Against: 1 Member of the Council (Councillor Falchikov-Sumner)

Abstaining: 9 Members of the Council (The Mayor, Councillor Thay Thayalan, and Councillors Roy Arora, David Cunningham, Kevin Davis, Ed Fram, Ian George, Jason Hughes, Maria Netley and Nicola Sheppard)

 

Supporting documents: