Issue - meetings

Budget papers previously issued for Cabinet attached. The Medium Term Financial Strategy has been published on the Cabinet page of the website.  Following the Cabinet meeting, the formal Council Tax Resolution 2010/11 with the Cabinet’s proposals will be circulated.

Any questions in accordance with Council Procedure Rule 11.1, of which notice has been given to follow.

Councillor Knight moved, seconded by Councillor Lourie:

(1)               That the Council agree the Revenue Budget for 2010/11.

(2)               That the Council agree Richmond upon Thames’ element of the Band D Council Tax be unchanged at £1,287.39.

(3)               That the Council agree that the overall Band D level of Council Tax for 2009/10 including the GLA element be set at £1,597.21, the same level as 2009/10.

 (4)       That the Council agree the Council Tax 2009/10 resolution to be proposed by the Leader (Supplementary Agenda).

Councillor Samuel moved, seconded by Councillor Porter,

To recommendation 1:

after 'Council' insert 'considers the proposed’ and after ‘2010/11’ insert ‘to be flawed because it delays the cost reductions required given the overall state of public finances.

Therefore consideration of the revenue budget, the setting of the borough element of the Council tax and the overall Council tax be deferred until such time as appropriate cost reduction proposals are submitted recognising that this must be on or before 11 March 2010.

Consequently:

Delete recommendations (2), (3) and (4).

In accordance with Procedure Rule 18.4 a recorded vote was called, where upon Councillors Arbour, Bennett, Bouchier, Evans, Fleming, Head, Hodgins, Howard, Marlow, Palmer, Parsons, Percival, Porter, Samuel, Seymour True and Urquhart voted in favour of the amendment; Councillors Acton, Allen, Ball, Cardy, Carr, Coombs, Davies, Dodds, Eady, Elengorn, Elloy, Jaeger, Jones, King, Knight, Lee-Parsons, Lourie, Miller, Morgan, Nicholson, Sheehan, Stanier, Stratton, Treble, Trigg, Warren, Williams, Michael Wilson and Munira Wilson voted against the amendment; The Mayor and the Deputy Mayor did not vote.

Therefore the amendment was declared to be LOST.

Councillor True moved, seconded by Councillor Arbour,

To delete recommendation (2) and insert:

(2) That the Council

(a) Notes with concern the £1.9 million underspend in 2009/10 which followed the unnecessary imposition of the highest Council Tax rise in London of 4.33% in April 2009

(b) Condemns the Cabinet plan to continue to hoard this money in reserves during a recession.

(c) Resolves that £1.44m of the underspend be applied immediately to reduce the Council Tax level in order to give money that this Council did not need back to local tax payers and to provide real help to the local community in times of recession; and therefore

In recommendation (3):

After 'Council' insert ‘Congratulate the Mayor for London on again freezing the GLA precept and'

Delete ‘overall’ and insert ‘Richmond upon Thames element of’

Delete ‘level of’

After ‘Council Tax for 2010/11’, delete remainder of sentence and insert ‘be reduced by 1% to £1,274.52.’

Delete the existing recommendation (4) and replace with

(4) That the Council agree that the overall Band D level of Council Tax for 2010/11 including the GLA element be set at £1,584.34

And insert recommendation (5)

(5) That, following amendment on the basis of the figures above, the Council agree the Council Tax 2010/11 resolution to be proposed by the Leader.

The amendment was put to the vote and FELL.

The substantive motion was put to the vote and declared to be CARRIED.

RESOLVED:

(1)               That the Revenue Budget for 2010/11 be agreed.

(2)               That it be agreed that the Richmond upon Thames’ element of the Band D Council Tax be unchanged at £1,287.39

(3)               That it be agreed that the overall Band D level of Council Tax for 2009/10 including the GLA element be set at £1,597.21, the same level as 2009/10.

(4)               That it be noted that at its meeting on 26th January 2010 the Council calculated the amount of 88,895.44 as its Council Tax base for the year 2010-2011 in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 made under Section 33(5) of the Local Government Finance Act 1992.

(2)        That the following amounts be calculated by the Council for the year 2010-2011 in accordance with Sections 32 to 36 of the Local Government and Finance Act 1992:-

(a)   £405,989,400      being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2) (a) to (e) of the Act

(b)   £263,030,685      being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3) (a) to (c) of the Act

(c)   £142,958,715      being the amount by which the aggregate at 2 (a) above exceeds the aggregate at 2 (b) above, calculated by the Council, in accordance with Section 32 (4) of the Act, as its budget requirement for the year

(d)    £28,515,216       being the aggregate of the sums which the Council estimates will be payable for the year into its General Fund in respect of redistributed non-domestic rates, revenue support grant, or additional grant increased by the amount of the sums which the Council estimates will be transferred in the year from its Collection Fund to its General Fund in accordance with Section 97 (3) of the Local Government Finance Act 1988 (Council Tax surplus) and increased by the amount of any sum which the Council estimates will be transferred from its Collection Fund to its General Fund pursuant to the Collection Fund (Community Charges) directions under section 98 (4) of the Local Government Finance Act 1988 (Community Charge surplus) made on 7th February 1994.

(e)       £1,287.39        being the amount at 2 (c) above less the amount at 2 (d) above, all divided by the amount at 1 above, calculated by the Council in accordance with Section 33 (1) of the Act, as the basic amount of its Council Tax  (Band D) for the year

(f) Valuation bands

being the amounts given by multiplying the amount at 2 (e) 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

(3)       That it be noted that for the year (2010-2011) the major precepting authority has stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings shown below:-

(4)        That, having calculated the aggregate in each case of the amounts at 2 (f) and 3 above, the Council, in accordance with Section 30 (2) of the Local Government Finance Act 1992, the following amounts of council tax for the year (2010-2011)be set for each of the categories of dwelling shown below:-

            Valuation Bands

(5)   That the Director of Finance and Corporate Services be authorised to institute legal proceedings where necessary for the collection of the aforesaid Council Tax and Non Domestic Rates.

The report requests the Cabinet to consider the revenue budget strategy and recommend the level of Council Tax for 2010/11.

Report of the Deputy Leader and Cabinet Member for Resources attached.

This is a key decision.

The Deputy Leader and cabinet Member for Resources introduced the report and highlighted that no increase in council Tax was proposed.  This was in response to the extraordinary economic situation that residents faced.  Cabinet noted that this budget would protect services.

The reasons for the decision and any alternative options considered and rejected are set out in the report.

RESOLVED:

1. That the Central Items and contingencies as set out in paragraph 3.6.4 be agreed;

2. That the advice of the Director of Finance and Corporate Services in respect of Section 25 of the Local Government Act 2003 in setting the budget (see paragraph 3.11) be considered;

3. That the Council be RECOMMENDED to agree the Revenue Budget for 2010/11;

4. That the Council be RECOMMENDED to agree that the Richmond upon Thames element of the Band D Council Tax be unchanged at £1,287.39;

5. That the Greater London Authority (GLA) precept of £309.82 be noted;

6. That the Council be RECOMMENDED to agree that the overall Band D level of Council Tax for 2010/11 including the GLA element be set at £1,597.21, the same level as 2009/10.  The levels of Council Tax for all property bands are shown at Appendix A; and

7. That the revised Medium Term Financial Strategy including the efficiencies/savings identified (Appendix D) be approved.