Issue - meetings

Officer: Lisa Taylor

Key decision: Council Tax recommendations are reserved to Council. Housing rents and charges are Key Executive Decisions

The Leader of the Council delegated authority to the Cabinet to make the following decisions.

RESOLVED:

1.    That Cabinet recommend to full Council:

a.    A 2.99% increase in the Council Tax for Croydon Services (a level of increase Central Government has assumed in all Councils’ spending power calculation).

b.    A 1.0% increase in the Adult Social Care precept (a charge Central Government has assumed all councils’ will levy in its spending power calculations).

c.    To welcome the GLA increase of 8.93%, of which 91% of which is being used for the Metropolitan Police service and 9% is being used for the fire service.

With reference to the principles for 2019/20 determined by the Secretary of State under Section52ZC (1) of the Local Government Finance Act 1992 (as amended) confirm that in accordance with s.52ZB (1) the Council Tax and GLA precept referred to above are not excessive in terms of the most recently issued principles and as such to note that no referendum is required.  This is detailed further in section 3.5 of the report.

d.    The calculation of budget requirement and council tax as set out in Appendix D and E of the report.  Including the GLA increase this will result in a total increase of 4.88% in the overall council tax bill for Croydon.

e.    The revenue budget assumptions as detailed in the report and the associated appendices :-

f.     The programme of revenue savings and growth by department for 2019/20 (Appendix A of the report).

g.    The Council’s detailed budget book for 2019/20 (Appendix B of the report).

h.    The Capital Programme as set out in section 16, table 16 and 17 of the report.

i.      To note there are no proposed amendments to the Council’s existing Council Tax Support Scheme for the financial year 2019/20.

j.      The adoption of the Pay Policy statement at Appendix H of the report.

k.    Approve the increase in premium for long-term empty dwellings with effect from 1st April 2019 as set out in section 9.10 of the report and Appendix I of the report.

l.      The adoption of the Adult Social Care Charging Policy with effect from the 1^st April 2019 as set out in section 8.11 and appendix J of the report.

2.    That Cabinet agree:

a.    A rent decrease for all Council tenants for 2019/20, in line with the Government’s social rent policy which has legislated to reduce social rents by 1%.

b.    No increase to Garage and Parking space rents.

c.    No increase to the service charges for caretaking, grounds maintenance and bulk refuse collection as detailed in section 17 of the report.

3.    That Cabinet note:

a.    That in respect of the Council’s public sector equalities duties where the setting of the capital, revenue and HRA budget result in new policies or policy change the relevant service department will carry out an equality impact assessment to secure delivery of that duty including such consultation as may be required.

b.    The progress being  ...  view the full decision text for item 15

The Leader began with a presentation and noted that despite local government experiencing cuts of 76% since 2011/12 the Prime Minister claimed that austerity had ended. The Leader stated he was proud to be presenting a budget which would see a modest increase of £1.54 per week in Council Tax in light of the large cuts experienced by the council. A budget, it was noted, which allowed for investment in areas including libraries, culture, young people, leisure centres and youth zones. The Leader further welcomed the Mayor of London’s budget being approved by the London Assembly, a budget which would provide additional funding for the Metropolitan Police Service which had also experienced large cuts in funding in recent years.

The Leader thanked Richard Simpson for his work on the budget and previous budgets. It was noted that in his role of S151 Officer, he had guided the council through some of the toughest times experienced in local government, and Members wished him well for the future. The Cabinet Member for Finance & Resources noted the huge contribution of Richard Simpson, and welcomed Lisa Taylor into the role of S151 Officer stating that Croydon continued to be in very safe hands financially.

The Cabinet Member for Finance & Resources gave a presentation to the meeting, stating the local government had experienced the largest cuts from central government and as a result local government across England was in crisis. Alongside the real term cut in spending power there had also been increases in demand which put further pressure on local government, and as such a multi-billion pound shortfall in funding had been identified nationally. Furthermore, it was raised that uncertainty remained in regard to the funding formula to be used by the government in future, and the council’s response to the proposal was included within the agenda papers.

Whilst it was noted that funding cuts had placed a large pressure on local government, additional responsibilities such as Public Health and care leaver responsibilities, had also compounded the issue. Additionally, the Cabinet Member informed Members that demographic changes with an older population and more children in care, had increased pressures on the budget.

The Section 151 Officer noted that the Medium Term Financial Strategy in 2018 had reported a gap in 2019/20 and the following two years; however it had become possible to close the gap for 2019/20. The funding gap for the following two years, however, remained in place but work would continue to close the gap.

Members were informed that in addition to the central government funding reductions experienced since 2011, the council would see a further reduction of 8.2% in funding in 2019/20. Additionally, funding per head was significantly below that received by inner London boroughs despite Croydon experiencing the same issues as those experienced by inner London boroughs.

The Cabinet Member highlighted some areas where shortfalls in funding had been experienced; including Unaccompanied Asylum Seekers which saw a shortfall in funding of £7m and the Public Health grant had decreased by  ...  view the full minutes text for item 15