Agenda item

 Councillor Andy Hull, Executive Member Finance, Performance and Community Safety was present. Steve Key, Service Director Finance and Resources was also present.

During the presentation of the Executive Member the following main points were made –

·         The Committee noted that the Government had made significant funding reductions to Local Government funding since 2010, exacerbated by unavoidable and inflationary cost pressures. Islington has had to find savings of up to £194 million, and including, 2017/18

·         It was noted that there is also an expected further 10% cash reduction in Islington’s core settlement funding over the next 2 years, the last 2 years of the 4 year Government’s funding settlement, and this is in combination with further inflationary, demographic and structural funding pressures, particularly in relation to Children’s Services

·         As a result of these pressures, it is estimated that £49 million of ongoing savings need to be found over the next 2 years, comprising £32 million in 2018/19 and £17 million in 2018/19. The 2019/20 savings requirement will increase accordingly, for any of the 2018/19 savings that are ‘one off’, rather than ongoing in nature

·         The Committee also noted that over the period 2010-2020, Islington will have faced a like-for-like reduction in core un ring-fenced Government funding of revenue support grant, business rates and top up grant of approximately 70%

·         Reference was made to the ‘pooling’ of business rates between London Boroughs and the GLA and Corporation of London, and that it would produce additional income in future years, and no borough would be a ‘net’ loser as a result of the proposal

·         The Committee welcomed the investment in the building of new Council houses and that an additional £1m will be invested in Tufnell Park Primary School

·         The Committee noted that for a third year an additional £0.5m had been budgeted for early intervention/targeted youth work, although a small number, that would be necessary as a result of the funding reduction, and hoped that these could be kept to a minimum

·         The Committee welcomed that the Budget proposals had yet again sought to protect front line services, however there were difficult choices to be made in the next 2/4 years, given the continuation of Government funding reductions and an outcome based budgeting process is being considered for future years

·         A number of detailed questions were asked in relation to individual issues on the budget proposals, which were responded to by Councillor Hull

·         In relation to a question as to fees and charges in relation to marriage ceremonies it was stated that additional costs had been added at less busy periods to remain competitive and had been carried out bearing in mind ‘market forces’

·         In response to a question it was stated that ICO is progressing satisfactorily, and the ICO Board were confident of future income for the Council

·         Members expressed concern at the level of stress and reduced staff morale as a result of constant increases in workload and reductions to staff

·         In response to a question, Councillor Hull stated that the presentation on GDPR would be circulated to Members

·         A Member referred to the current restrictions placed by Central Government on rents, and whether the Council, as a registered provider, could charge target rents on new build properties

RESOLVED:

That the Executive note the comments of the Committee and be requested to investigate the position with regard to the powers of registered providers, and any flexibility in terms of the implementation for new rents in Islington, in the light of the current restrictions on Local Authorities

The Chair thanked Councillor Hull and Steve Key for attending