Agenda item

Report of the Cabinet - Budgets and Council Tax Declaration 2014/15

(a) To consider the attached report; and

(b) To consider holding a recorded vote on the recommendations contained in the report.

In a letter dated 4 February 2014 to the Leader of the Council, Brandon Lewis MP, Parliamentary Under Secretary of State, Department for Communities and Local Government has stated that the Government’s expectation is that at this year’s budget meetings, all principal councils will adopt the practice of recorded votes on any decision relating to the budget or Council Tax, not only on the substantive budget motions agreeing the budget, setting council taxes or issuing precepts, but also on any amendments proposed at the meeting.

To facilitate this, The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 which will come into force on 25 February 2014 will make it mandatory for councils as soon as is practicable to amend their Standing Orders so as to include provisions requiring recorded votes at budget meetings. In recognition that it may not be possible to amend Standing Orders before budget meetings this year, Brandon Lewis has stated that he expects councils to adopt the practice of recorded votes by resolving to do so in line with the Regulations.

That Council Procedure Rule 17 (Voting) be amended by the addition of the following new sub-paragraph:

17.6 Voting at Budget Decision Meetings

In accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, immediately after any vote is taken at a budget decision meeting there must be recorded in the minutes of the proceedings of that meeting the names of the persons who cast a vote for the decision or against the decision or who abstained from voting.

“Budget decision” means a meeting at which;

(a) a calculation is made (whether originally or by way of substitute) in accordance with any of sections 31A, 31B, 34 to 36A, 42A, 42B, 45 to 49, 52ZF, 52ZJ of the Local Government Finance Act 1992, as amended; or

(b) a precept is issued under Chapter 4 of Part 1 of that Act,

and includes a meeting where making the calculation or issuing the precept as the case may be was included as an item of business on the agenda for that meeting.

References to a vote are references to a vote not only on the substantive budget motions agreeing the budget, setting council taxes or issuing precepts, but also on any amendments proposed at the meeting.

Minutes:

The Chairman announced that she proposed to take the items on holding a recorded vote before the report of the Cabinet.

(a) Recorded Votes at Budget Meetings

The Council received a letter dated 4 February 2014 from Brandon Lewis MP, Parliamentary Under Secretary of State, Department for Communities and Local Government stating that the Government’s expectation was that at this year’s budget meetings, all principal councils would adopt the practice of recorded votes on any decision relating to the budget or council tax, not only on the substantive budget motions agreeing the budget, setting council taxes or issuing precepts, but also on any amendments proposed at the meeting.

Members noted that to facilitate the Government’s wishes, the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 which would come into force on 25 February 2014 would make it mandatory for councils as soon as it was practicable to amend their Standing Orders so as to include provisions requiring recorded votes at budget meetings. Recognition that it might not be possible to amend Standing Orders before budget meetings this year, Brandon Lewis had stated that he expected councils to adopt the practice of recorded votes by resolving to do so in line with the regulations.

RESOLVED:

That recorded votes be taken on any decision relating to the budget or council tax for 2014/15.

(b) The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014

Motion moved by Councillor Watts and seconded by Councillor Whitbread:

“That the Council’s Constitution be amended to include provisions requiring recorded votes at budget meetings”.

Carried

RESOLVED:

That Council Procedure Rule 17 (Voting) be amended by the addition of the following new sub-paragraph:

“17.6 Voting at Budget Decision Meetings

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, immediately after any vote is taken at a budget decision meeting there must be recorded in the minutes of the proceedings of that meeting the names of the persons who cast a vote for the decision or against the decision or who abstained from voting.

“Budget decision” means a meeting at which:

(a) a calculation is made (whether originally or by way of substitute) in accordance with any of the Sections 31A, 31B, 34 to 36A, 42A, 42B, 45 to 49, 52ZF, 52ZJ of the Local Government Finance Act 1992, as amended; or

(b) a precept is issued under Chapter 4 of Part 1 of that Act,

and includes a meeting where making the calculation or issuing the precept as the case may be was included as an item of business on the agenda for that meeting.

Mover Councillor Stavrou, Finance and Technology Portfolio Holder

Councillor Stavrou presented a report on the Council’s Budgets and the Council Tax Declaration 2014/15.

The Portfolio Holder apologised to members for the postponement of this Council meeting for two days which had arisen because when the referendum limit for a council tax increase for 2014/15 had been announced on 5 February 2014, the Police and Crime Commissioner’s budget had exceeded the limit and had to be reconsidered. She advised that it had only been this afternoon when the revised precept figure had been received which together with precepts from other authorities enabled the setting of the overall council tax.

Councillor Stavrou referred to the Council’s lengthy and robust process for setting its own budget. Detailed growth lists had been considered by the Finance and Performance Management Cabinet Committee and the Cabinet itself whilst the Joint Finance and Performance Management Cabinet Committee and Finance and Performance Management Scrutiny Panel meeting had received detailed Directorate budgets and had been given the opportunity to question all the Directors and Portfolio Holders.

The Portfolio Holder stated that 2013/14 had been a difficult year in terms of the budget. Draft grant figures from central Government issued in late summer had been worse than previously indicated and had necessitated substantially increasing the need for net savings in the Council’s Medium Term Financial Strategy. Councillor Stavrou stated that fortunately the Government’s proposal to top slice the New Homes Bonus by diverting funds to Economic Partnerships had resulted in a national outcry and had led to this idea not being pursued.

The Council noted that although Council Tax collection rates had reduced it had not been to the extent anticipated and the provision of hardship funds for supporting local Council Tax and Discretionary Housing Payments were likely to be adequate this year.

Councillor Stavrou stated that the final report on the restructuring of the Council’s top management had not been submitted to the Council until late December 2013 leaving the accountants a lot of work to do in a short space of time to align budgets with the new four Directorate structure from April 2014. The Portfolio Holder stated that business rates retention was an ongoing problem with the Department for Communities and Local Government (DCLG) making up the rules as matters progressed. She said it had been known that additional grant would be payable to councils where DCLG had changed the system and in doing so had caused a reduction in a council’s income. It had been known that this Council would receive a grant but the amount of £400,000 had only been confirmed at the beginning of February 2014 and as a result that sum had been added to the District Development Fund. Members noted that a sum of £250,000 had been provided in 2014/15 to meet the cost of potential business rate appeals.

Councillor Stavrou reminded members that the financial issues paper considered in September 2013 had set a target of achieving £700,000 net savings. She reported that the target had been achieved mainly due to the Top Management Restructure which in a full year would achieve savings of £350,000, the investment of capital in acquiring a long lease at Torrington Drive, Loughton which would boost revenue by approximately £200,000 per annum, and changes to fees and charges which were estimated to achieve approximately £150,000. The Portfolio Holder explained that the proposed changes in parking tariffs would be the first for five years and were being introduced not only to increase income but also to address the representations from local traders about town centre parking spaces being taken by commuters. Councillor Stavrou advised that the revised proposals would provide an opportunity to better manage parking spaces and make them available to shoppers.

The Council noted that a key theme in the budget was Economic Development and provision had been made for an Assistant Director post to have specific responsibility as well as additional funding being provided.

Councillor Stavrou reported that it had been possible to achieve a balanced budget and investment in priority areas without increasing the District Council Tax. She continued that Epping Forest District Council had been a low Council Tax Council for many years and the Cabinet intended it to remain so. She cautioned that whilst the recession might be over, austerity for the public sector was likely to continue for some time.

Councillor Stavrou expressed her thanks to Bob Palmer, Peter Maddock and their staff for the work in preparing the budget under more difficult circumstances than normal.

Councillor Murray expressed support for the District Council budget but not those of the County Council and the Police and Crime Commissioner having regard to the services they provided. Councillor Angold-Stephens supported Councillor Murray’s views.

Councillor J M Whitehouse expressed support for the District Council budget but expressed concern that the Council was being asked to include additional income of £150,000 from fees and charges before knowing what changes would be made to car parking tariffs. He also urged caution about some District Council services which whilst continuing were showing signs of strain. He also referred to the current spend on consultants and asked that careful consideration be given to this in future.

Councillor Knapman drew attention to the savings forced upon the County Council, the level of which would not have been achieved without cutting services. He also expressed concern about the budget of the Police and Crime Commissioner.

Councillor McEwen echoed Councillor Knapman’s comments about the County Council’s budget.

Councillor Stavrou thanked members for their comments. She re-emphasised the reasons for revising car parking tariffs and said that consultants were only engaged when the Council officers did not have the necessary expertise.

Councillor Waller advised that a report on the details of the proposed car parking tariffs would be submitted to the Cabinet at which time other members would be able to contribute to the debate and, if necessary, call in the decision for further consideration.

Councillor Whitbread thanked Councillor Stavrou for her work in progressing the budget.

Councillor Sartin reminded members that at the Annual Council meeting in May 2013 she had advised that it was not her intention during her year of office as Chairman of Council to vote at Council meetings and she would therefore be abstaining from voting on this matter.

Report as first moved ADOPTED

RESOLVED:

Budget

(1) That the list of CSB growth and savings for the 2014/15 budget (set out in Annex 1 to these minutes) be approved;

(2) That the list of District Development Fund items for the 2014/15 budget (set out in Annex 2 to these minutes) be approved;

(3) That the revenue estimates for 2014/15 and the draft Capital Programme for 2014/15 be approved as set out in Annexes 3, 4 (a-g) and 5 to these minutes including all contributions to and from reserves as set out in the attached Annexes;

(4) That the Medium Term Financial Forecast be approved as set out in Annexes 8 a and 8 b to these minutes;

(5) That the 2014/15 HRA budget be approved and that the application of rent increases and decreases resulting in an average increase of 4.91% from £91.10 to £95.59, be approved;

(6) That the Council's policy of retaining revenue balances at no lower than £4.0M or 25% of the net budget requirement whichever is the higher for the four year period to 2016/17 be amended to no lower than £4.0M or 25% of the net budget requirement whichever is the higher during the four year period up to and including 2017/18;

(7) That the report of the Chief Financial Officer on the robustness of the estimates for the purposes of the Council’s 2014/15 budgets and the adequacy of the reserves (Annex 9 attached to these minutes) be noted.

Declaration of Council Tax

(8) That it be noted that under delegated authority the Director of Finance & ICT, in consultation with the Finance and Technology Portfolio Holder, calculated the Council Tax Base 2014/15:

(a) for the whole Council area as 50,679.4 (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended); and

(b) for dwellings in those parts of its area to which a Parish precept relates as set out below and in Annex 6 attached to these minutes:

Tax Base

Abbess, Beauchamp & Berners Roding 202.4

BuckhurstHill 5,016.0

Chigwell 5,737.7

Epping Town 4,828.3

Epping Upland 403.0 403.0

Fyfield 404.4

High Ongar 527.5

Lambourne 825.0

Loughton Town 11,828.2

Matching 415.5

Moreton, Bobbingworth and The Lavers 541.2

Nazeing 1,975.9

North Weald Bassett 2,422.4

Ongar 2,609.1

Roydon 1,264.7

Sheering 1,274.0

Stanford Rivers 343.6

Stapleford Abbotts 493.8

Stapleford Tawney 77.4

Theydon Bois 1,938.3

Theydon Garnon 81.3

Theydon Mount 108.7

Waltham Abbey Town 7,131.1

Willingale 229.9

(9) That the following amounts be calculated for the year 2014/15 in accordance with sections 31 to 36 of the Local Government Finance Act 1992:

(a) £123,761,841 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils;

(b) £113,144,884 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;

(c) £10,616,957 being the amount by which the aggregate at 9 (a) above exceeds the aggregate at 9 (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 31B of the Act);

(d) £209.49 being the amount at 9 (c) above (Item R), all divided by Item T (the amount at 8 (a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts);

(e) £3,077,383 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per Annex 6 attached to these minutes);

(f) £148.77 being the amount at 9 (d) above less the result given by dividing the amount at 9 (e) above by Item T (8 (a) 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 Parish precept relates;

(10) That it be noted that the County Council, the Police Authority and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each of the category of dwellings in the Council’s area as shown in Annex 7 attached to these minutes;

(11) That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts in Annex 7 Part B (attached to these minutes) as the amounts of Council Tax for 2014/15 for each part of its area and for each of the categories of dwellings; and

(12) That in accordance with section 52ZB of the Local Government Finance Act 1992, Council determines that the amount of Council Tax shown at (9) (f) of £148.77 for 2014/15, being unchanged from 2013/14 is not excessive and therefore there is no need to hold a local referendum.

There voted for the recommendation: (43) namely: Councillors Angold-Stephens, Avey, Bassett, Boyce, Breare-Hall, Chana, Church, Gadsby, Gode, Grigg, Jacobs, Jones, Kane, Keska, Knapman, Knight, Lea, Leonard, Lyon, McEwen, Mann, Markham, Murray, Pond, Rolfe, Sandler, Shiell, Smith, Spencer, Stallan, Stavrou, Thomas, Ulkun, Wagland, Waller, Watts, Webster, Whitbread, J H Whitehouse, J M Whitehouse, Wixley, Wright, Wyatt.

Abstentions (1) namely: Councillor Sartin (non voting Chairman)).

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