The Council debated the Recommendations as contained in the Leader and Cabinet Business Report (agenda item 7), including the following reports:
1. Adoption and Introduction of Croydon's Community Infrastructure Levy Draft Charging Schedule;
2. Financial Strategy 2013/17, General Fund 7 HRA Budget for 2013/14;
3. Treasury management strategy statement, minimum revenue provision policy statement & Annual investment strategy 2013/14;
Councillor Mike Fisher moved the recommendations contained in the report as printed in the Council agenda under agenda item 7, Business Report of the Leader and Cabinet and Councillor Dudley Mead seconded.
Councillor Fisher opened the debate saying that the last few years had been the toughest for local government and that Croydon was no exception to this. It had tested everyone in the Council. He said that a clear sense of direction was required and it is about doing the right thing for Croydon not the easy thing. The Council had battled to maintain services in the face of a 50% reduction of government funding. There were difficult decisions to be made and raising Council Tax was one of those.
In the past the Opposition, when in power, raised council tax by an average of 9% per year, this was at a time of plenty but still they achieved less. Life was much easier then.
This Administration has kept Council Tax increases to a minimum and it was frozen for the last two years despite being in the mists of one of the most biting recessions since the 1920's.
The increase equates to 34p per week per Band D household would help investment in roads, protect and educate our children, invest in new housing and look after the most vulnerable. The Leader said that the electorate have entrusted the Administration to do the right thing. Since 2010 around 2000 residents had given their views on services that are important to them at Question time events. Each year priorities have remained the same, protect the vulnerable, invest in schools and street cleaning.
The Leader went on to say that the Administration had delivered £118m efficiencies saving over the last 7 years, with £17m in the year to come, whilst maintaining the services that mattered to residents. There had also been significant reductions in complaints about services and a 10% increase in the number of residents satisfied by Council services.
Croydon has been experiencing hard times, homelessness was an example of this and welfare reform, with Croydon being one of early areas to be implemented. These are some of the toughest and unprecedented challenges being faced by this Council.
The Leader went on to say that the focus on investment will continue in 2013.
The Urban Regeneration vehicle would bring new, modern buildings to Croydon;
Bernard Weatherill House will take the Council into the 21st century with the key partners of Health and CAB delivering their services,
When Taberner House is demolished 600 new homes will be built;
Investment in sport and schools, investing in the future of Croydon.
In reply Councillor Tony Newman opened by welcoming Croydon Radio who were transmitting the meeting. He went on to say that Labour used to webcast all Council meetings live and the next Labour Council would do so again. He said that transparency and accountability were fundamental to local democracy and questioned recent decisions taken by the Conservative council regarding the sell off of libraries, the proposed incinerator site and the spend on the new HQ had lacked transparency.
He said that Croydon was a fantastic place to live and work and had an exciting future ahead has exciting future. However across Croydon and nationally too many people were suffering.
He went on to say that the people of Croydon were suffering because of the cuts, redundancies at the Upper Norwood Joint Library, loss of lollipop crossing staff, cuts to youth services and, 100's of staff losing jobs in Taberner House. He questioned if this budget was good news for them.
Labour would introduce a Community Council in New Addington, bring forward a plan to build 100's of affordable homes to tackle housing crisis and create new jobs for local people.
Councillor Newman went on to say that should Labour be successful in the next local election they would;
Introduce the London Living wage for both the Council and those who seek and run existing Council contracts;
If legally possible would stop the incinerator being build on Croydon's borders;
Cut the pay of the Chief Executive to nearly £150K rather than £250K;
Have a proper training academy to develop staff talent and scrap the consultants' budget;
Would clean streets properly and crack down on fly tipping;
fight for better funding from Government;
Promote the credit union borough wide and crack down on pay day loan sharks;
Would fast track implementation of street lighting to make streets safe and clean.
Councillor Gatland in supporting the budget spoke of the lack of funding from past and present governments but that through efficiency savings the administration were able to protect the services that residents valued the most. These included road repairs, school improvement plans for special educational needs, and investments in primary and secondary schools.
Councillor Butler is opposing the budget spoke of the housing crisis nationally and locally and the number of families in bed and breakfast in Croydon. She continued by saying that the rise in Council Tax and the reduction in Council Tax Benefit would hit many of the poorer families in Croydon. This together with the 4% rise in rent to Council tenants would cause further distress. House building was down, homelessness and rough sleepers up, mortgages difficult to get and a rise in private sector rents on poor quality accommodation added to the problem. In conclusion Councillor Butler said there was little in the budget to assist residents in her Ward.
Councillor Dudley Mead in support of the budget spoke of the £224.6m to buy tenants out of the Housing Revenue Account subsidy and that the £6m saving would be ringfenced to build new houses. He went on to say that the 4.36% increase in rent was to equalise the difference in social rents, affordable homes rents and market rents and that Council officers had visited most tenants affected by the benefit changes. In concluding Councillor Mead spoke about the Capital budget showing available capital of £193m of which £119m is unsupported borrowing before HRA paid over, Croydon was 4th lowest borrower in London.
Councillor Hall opposing the budget, spoke of the charges for the new Council headquarters and the increase in Council borrowing.
Councillor Bashford spoke in support of the budget saying that this year's increase in the Council Tax would mean continued investment in future services. She spoke of the tough decisions made in the light of 23% reduction in government funding with further cuts to come in the coming year.
Councillor Letts in opposing said that many residents' living standards were being squeezed and that the increase in Council Tax and cuts in benefits would affect everyone. She went on to say that 1 in 5 children were in poverty and that employment prospects were difficult without adequate skills and the lack of childcare facility.
Councillor Perry in supporting the budget spoke of the various regeneration projects around the borough and the huge benefit that would be seen following the announcement of the Westfield - Hammerson proposals for the town centre. He spoke of developments Berkerley Homes at Saffron Square, L&G at St Georges House and Abstract at Renaissance the first major office space for 20 years.
Councillor Avis spoke in opposition of the budget, of the increases in taxation and the bedroom' tax being a tax on the poor and vulnerable. She also spoke of assessment made by Atoss and how these would have an impact on residents through the cuts in the adult social care budget.
Councillor Margaret Mead in support of the budget spoke of the efficiencies that have been made whilst still protecting the most vulnerable residents in the borough. She went on to say that the Department for Adult Social Care and Housing was recognised as being one of the best and most innovative in the country.
Councillor Fitzsimons speaking against the budget, spoke of the poor national financial performance and the impact on the local economy and the increase in Council borrowing.
Councillor O'Connell in support spoke of the Council's front line performance strengthening and the benefits achieved through the Step Change programme.
Councillor Bee speaking against the budget, spoke of the cuts in benefits would hit children hardest and that issues like child poverty and poor health would get worse in the years to come.
Councillor Tim Pollard in support, spoke of the difficult decision to cut free school meals which would have added £10m to the budget, Investments were being made in front line services, foster care service, and schools.
Councillor Flemming speaking against, spoke of increases in Council tax and the withdrawal of Council Tax Support, and that the bedroom tax did not take into account rooms being kept for family members to stay, carers to stay or children returning from university. She spoke of the borough housing crisis and the number of families in bed and breakfast.
Councillor Thomas speaking in support saying that any increase in Council tax was too much but that these difficult decisions had to be made in the face of government cuts and previous labour administrations failings. He spoke of the improvements made under the administration including increase recycling, food waste collection from schools, street lighting, no increase in parking charge this year and the opening of the Waddon Leisure centre.
Councillor Collins speaking against spoke of the attack on local government finances' from central government. The cuts in benefits and rise in tax would affect 16,000 residents and would have an impact on the future social services budget. He went on to speak about cuts that a Labour administration would make if returned to power in 2014 including to the consultants budget. He spoke of the planning issues in the North of the borough, street cleaning and flytipping. In conclusion Councillor Collins said that a budget was needed for growth and that this budget did not deliver that.
Councillor Fisher in exercising his right of reply said he had listened to each speech and was still unsure what the opposition would do if in the same position. He spoke of the variances in government funding to neighbouring boroughs and that if a settlement for Croydon had been similar to Lambeth, Council tax would have been cut. He went on to say that he hoped that the Steve Reed MP for Croydon North would push for a fairer deal for Croydon. The administration would continue to make a case for fairer funding for Croydon and they would continue to take the difficult decisions whilst ensuring services were maintain for the residents of the borough.
At the conclusion of the debate Councillor Newman asked for a show of hands; the budget recommendations as contained in the Council agenda were then put and carried 36 Conservative, 33 Labour. as follows:
1) Adoption and introduction of Croydon's Community Infrastructure levy draft charging schedule;
2) Financial Strategy 2013/17, general fund and Housing Revenue Account budget for 2013/14; and
3) Treasury management strategy statement, minimum revenue provision policy statement & Annual investment strategy 2013/14; including the revised Appendix P previously circulated.