RESOLVED that the Minutes of the Council Meeting held on 25th January 2016 be signed as a correct record.

All Members of the Council confirmed that their interests as listed in their Declaration of Interests Forms were accurate and up-to-date.

None.

The Mayor thanked Members for their support of her various charity events. She reminded Members of forthcoming events,
20 April - Whittington, London Mayors Walk
17 April - Comedy Night at Fairfield Halls
21 April - Queen's Birthday - Afternoon Tea
6 May - Gala Dinner at Croydon Hilton.

The Council debated the Recommendations as contained in the Leader and Cabinet Business Report (agenda item 7), including the following reports:

Financial Strategy & Budget 2016 -17

1. General Fund and HRA budget 2016/17
2. Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement & Annual Investment Strategy 2016/17

Councillor Tony Newman 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 Alison Butler seconded.

Councillor Newman opened the debate saying that ‘Ambitious for Croydon' was the manifesto that the Labour administration had been elected on. He went on to speak of the ambition for growth, quality jobs for local people, cleaner and safer streets, improved infrastructure and schools, improving youth facilities , a vibrant cultural offer, a quality university education in Croydon and being a Tech City.

He went on to say that the Council finances were under control and that the administration was setting a balanced budget, with Council Tax frozen last year and increasing this year by 53pence per week, 1.89% which was below the Office of Budget Responsibility projection of inflation at 2%.

Councillor Newman announced that £4m had been returned by Home Office for Unaccompanied Asylum Seeking Children (UASC) and announced Growth funding of £350m that would support infrastructure improvements. He also announced that agreement had been reached with the Fairfield Board to take forward to £30million investment and transformation of the Fairfield Halls.

Councillor Newman went on to speak about clean and safe streets, the Purley BID and saving Purley pool following years of neglect. He went on to speak about the previous administration selling off the Riesco collection, allowing Fairfield Halls to fall into disrepair, the closures of the Warehouse Theatre and David Lean cinema and an affordable housing requirement of 10%. He also criticised the local Conservative MPs for voting on support of the transition settlement of £24million given to Surrey CC, whilst Croydon only received £800K.

He then spook of the growth in the borough in the face of Government cuts and the administration's determination to ensure all Croydon residents would benefit. Councillor Newman said he was proud of:

• Landlords Licensing Scheme
• London Living wage council
• Affordable housing requirement at a minimum of 30%
• Tackling domestic and child sexual exploitation

In summing up Councillor Newman said that the budget to be agreed protected front line services, this was despite a reduction of 50% in government funding in recent years. He went on to say that the Labour Administration would do all it could as a London Growth Borough to ensure that all local people benefited from this growth.

Councillor Tim Pollard, speaking against the motion, opened by saying that Councillor Newman seemed to be taking the credit for everything good that happened in the Borough but blamed the Conservative Government for everything that was bad! He went on to say that the Labour administration had broken manifesto promises in that

• Council Tax has been increased
• One hour free parking in district centres has not happened, and has been cut in Coulsdon.
• The pledge to withdraw from the South London Waste Partnership and tear up the libraries contract were not implemented.

Councillor Pollard went on to say that the Labour administration knew what the local government settlement would be and that would have been that figure whichever party got into government. He asked what Councillor Newman would cut to protect local government spending. Councillor Pollard went on to point out that the Council were now getting the business rates and this would offset some of the cuts.

Councillor Pollard went on to say that the Labour administration had chosen to waste money on various projects:

• £200K on a Fairness Commission
• £120K to sponsor a cycle race
• £100K for a free summer festival
• £60K to move boulders around the borough
• A £6million overspend in one department
• £3million per year on agency staff
• £4million for Boxpark

He also spoke about:

• The proposed closure of Purley Pool
• Changing street cleaning in the south of the borough to accommodate more in the north
• Cutting the green waste service
• Building on protected open land in Shirley

In summing up Councillor Pollard said that the budget was full of contradictions and misinformation and that Labour couldn't manage it or keep their promises.

Councillor Hall, supporting the motion, said that the budget reflected the context set by central government and the priorities for the administration. He went on to say that Government funding had been cut by 56% since 2010 rising to 76% by 2019. The funding did not recognise inflation, population growth, demographic pressures or demand created by government such as welfare reforms. He went on to speak about transition funding, cuts to public health and inadequate funding for school places.

Councillor Hall stated that since coming to power, the Labour administration had a joined up strategy that protected essential services, delivered residents priorities and was innovative. He went on to say that there had been a prospect of a £22million budget gap this year, but this has been closed by:

• additional precept and council tax income
• income such as renting out floors in BWH
• saving on back office staff by the digital enabling programme
• Efficiencies delivering improved services for less.

In summing up Councillor Hall said there were no cuts to front line services in this budget, in the capital programme there was investment in delivering, spending and borrowing for a purpose, i.e. housing development, new leisure facilities. He went on to say that tough choices had been made and that the Councils finances were under control.

Councillor Margaret Mead, speaking against, said she was surprised that Cllr Woodley was not speaking in the debate. When Cllr Woodley set the budget for Adult Social Care the challenges and demands for services were the same as those faced by the Conservatives, but they managed to balance the budget for years.

Councillor Mead went on to say that the Adult Social Care department was now very large, and that transformation of social care services is high risk as it is anticipates delivering savings whilst relying on other areas to deliver savings. She asked where was the evidence that this would be achieved.

Councillor Mead also spoke about the high numbers of agency staff, experience staff leaving, plans for recruitment and retention with nothing mentioned in the budget papers. She also asked about the increasing overspend in the department, and said that she feared for those who would need help and support.

Councillor Shahul-Hameed, speaking for the motion, said that the Council has a duty to supply services for the benefit of the residents, businesses and the community. She went on to say that when Labour took control of the Council one of their priorities was to be open and transparent and listen to residents. This they have done.

She went on to say that Labour had a clear focus of their ambition to grow the boroughs economy whilst ensuring that the most vulnerable were protected.

Councillor Shahul-Hameed went on to speak about;

• Regeneration of Fairfield Halls and College Green
• Linking with Go-On UK to give everyone basic digital skills
• Introduced the Landlord Licencing Scheme
• Set up a Housing Development Company
• Protecting Meals on Wheels
• Introduced the innovative Gateway services
• Resident parking permits fees frozen, 30 minutes free parking in district centres.

In summing up Councillor Shahul-Hameed said that Government cuts would devastate local services and communities.

Councillor O'Connell, speaking against, asked for more details for the following items that came under his Shadow Cabinet portfolio:

• Eyes & Ears project taking £735K, out of a wide range of services, much around front line enforcement.
• Taking out £400k from voluntary sector funding, which organisations are effected
• £326K out of bereavement services
• Removing £300K support for homeless, how does this affect the most vulnerable?

Councillor O'Connell then spoke of the detail in the cut of 6.44% of London Mayors precept, transport, housing, regeneration and extra police, saying that the London Mayor was a tax cutting Mayor and kept his promises not to increase tax.

Councillor Watson, speaking in support said he was proud to deliver a balanced budget that protected front line services and vulnerable residents and provided investment to improve the Town.

He went on to say that it was right that some services should be paid for by residents that used them and that residents were being asked to use Council online services where they can. This had already saved £5.3 million. Councillor Watson said that the single method of funding for voluntary groups was now more straightforward for the Council and for the groups applying for funding.

In summing up Councillor Watson spoke about:

• A Working Group looking at night time economy
• Improvement in public realm, street lighting

Councillor Watson announced that Surrey Street would be retained and enhanced with £500k investment.

Councillor Lynne Hale, speaking against, said that in terms of culture the budget was a disaster. She went on to speak about the Fairfield Halls closure with no public consultation, the Mott McDonald report not being seen by Conservative councillors and why the proposal for a phased development had been dismissed. Councillor Hale expressed concerns for the employees, school and dance groups that use the Halls, actor and musicians and the volunteer stewards who had all contributed to making Fairfield the jewel in Croydon's cultural crown.

Councillor Collins, speaking for the motion, said the budget was about doing more with less. He went on to say that with Labour in power Croydon has hope.

Councillor Collins listed a number of initiatives introduced by Labour:

• ‘Don't Mess With Croydon'
• More recycling, faster fly tipping clearance, new bins in high street
• Increased enforcement has led to prosecutions for fly tipping and littering
• Will introduce time banded collection in Thornton Heath to aid local traders.
• 50 community clean ups throughout the borough
• 270 street champions recruited
• SLWP improved street cleaning, better collections rates.

There have been challenged and resources have been put where most needed and the garden waste service will continue.

Councillor Hopley, speaking against, spoke about Councillor Bee's portfolio and some of the decisions made to raise income. Parking charges had been increased in a number of areas, to the detriment of local business and local district centres. She asked if it was ‘fair' to increase parking charges at Waddon Leisure Centre, where there had also been issues with some elderly residents unable to claim a refund from the centre, was it ‘fair; to increase the charge in Spicer's Year. She didn't think so. In summing up Councillor Hopley said Cllr Bee had broken a manifesto promise of one hour free parkin gin district centres and had spent money on 20mph consultation in areas that already had that speed limit.

Councillor Ali, speaking for the motion, said that the Chancellor had said that everyone has to do their bit as a reason for the government cuts to grants.

Councillor Ali said that local government had already done more than its fair share. Croydon has had £100million taken from its budget with a further £50million to come.

She went on to say the Labour demonstrated economic competence and set a balanced budget in the face of government cuts and went on to speak of:

• Landlord Licensing Scheme
• London Living Wage
• Support for residents and older and disabled people
• Investment in culture
• Investing in youth services
• Affordable housing percentage increase in developments.
• Opportunity & Fairness Commission had highlighted many of these issues.

Councillor Cummings, speaking against the motion, said that the Labour seemed to blame every Conservative for the cuts, be they local or national. He went on to say that the cuts to local government grants were causing financial pressures but that the Council had no control over government policy. He said what is relevant to Croydon residents is what lies under the control of Croydon politicians and they are the ones making decisions. Spending on the Fairness Commission and a Cycle race and then to cut free garden waste was a choice, to close an education facility in Coulsdon and then build a new youth centre elsewhere was a choice, to say there was no money for a phased closure of Fairfield Halls but then lend money to Boxparks was a choice, to put Council Tax up when there was an overspend of £6million in one department was a choice. In summing up Councillor Cummings referred to a reply to CQ135-16 showing that the administration were budgeting to raise Council borrowing to income from 108% in 2014 to 172% in 2018.

Councillor Butler, exercising the right of reply, said she found it interesting that none of the opposition speakers had anything to say about how they would balance the budget.

Councillor Butler then spoke about the HRA settlement enforced by central government in a bid to lower the Housing Benefit Bill with no thought to tenants or the young people of the borough. She went on to say that next year would be harder and that the government needed to step back from their sustained attack on social housing.

Councillor Butler then went on to say that Croydon was a great place to live, a place full of potential, a place the majority are proud to call home. She went on to say it was the job of the Council to talk up the town and do the best by it; this is not always an easy job.

Councillor Butler said that local government has been hardest hit by government cuts and this meant that the Council had to do more with less and in different ways.

Councillor Butler in summing up said that tough choices needed to be made and that the budget being presented was made with care and consideration. Front line services have not been cut, a manifesto promise. She went on say that the administration had fought for the Town, and listed a number of projects including:

• £350m Growth Zone
• Thornton Heath district centre Regeneration
• New Addington Pool and Community Centre
• Surrey Street
• Boxpark
• Fairfield Halls and the culture quarter
• community ward budgets
• On side youth zone
• London living wage
• Credit Union
• New schools
• Clean streets

Following the debate the Chief Executive explained that there would be three poll votes as required by legislation, one on the recommendation to increase Council Tax in Croydon, the second of the recommendation to increase the council tax for the Adult Social Care precept and the third on the remaining recommendations in the report.

1. General fund:

             1. A 1.99% increase in the Council Tax for Croydon Services

The recommendation was put and carried - Yes - 39; No - 29; abstain - nil (see attached)

              2. A 2% increase in the Council Tax for Adult Social Care.

The recommendation was put and carried; yes - 39; No - nil, abstain - 29 (see attached)

              3. The remaining recommendations relating to:

General Fund and HRA Budget 2016 -2017

III. The calculation of budget requirement and council tax as set out in Appendix E of the Cabinet report
    Alongside the GLA decrease this will result in a total increase of 1.89% for Croydon.

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

• Appendix A the programme of revenue investment, efficiencies and cuts by department.
• Appendix B The Council's detailed budget book

V. The Capital Programme as set out in section 12, table 20 and 21 of this report.

VI. The continuation of the Council's existing Council Tax Support Scheme in 2016/17 as detailed in section 10.5 of this report.

VII. To recommend to the Council the adoption of the Pay Policy statement at A

1.2    Council noted that Cabinet was requested to agree:

1. A rent decrease for all Council tenants for 2016/17, in line with the Government's social rent policy which has legislated to reduce social rents by 1%.
2. Garage rents will increase by 2% and parking space rents will increase to £7 per week for tenants and £10 per week for non tenants.
3. The un pooled service charge for caretaking, grounds maintenance and bulk refuse collection will not change from 2015/16, as detailed in section 11.14.

1.3    Council noted that Cabinet was asked to note:-

1. 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.
2. The progress being made towards balancing the Council's financial position for 2015/16 as at Quarter 3 and the current projected outturn forecast of £0.602m as set out in the report at item 8.3 on this agenda.
3. The response to the draft local government settlement which is attached at Appendix F.
4. That Cabinet note the pre-decision scrutiny of the proposed Budget 2016/17 at the Scrutiny and Overview Committee as set out in Appendix J
5. The statement on reserves and balances and robustness of estimates from the statutory Section 151 Officer.

2. Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement & Annual Investment Strategy 2016/17

Council RESOLVED to approve:

1. The Treasury Management Strategy Statement 2016/17 as set out in paragraphs 3.1 to 3.3 of the Cabinet report including the recommendations that:
   1. The Council takes up the balance of its 2015/16's borrowing requirement and future years' borrowing requirements, as set out in paragraph 3.3.
   2. That for the reasons detailed in paragraph 3.7, opportunities for debt rescheduling are reviewed throughout the year by the Assistant Chief Executive (Corporate Resources and Section 151 Officer) and that, he be given delegated authority, in conjunction with the Council's independent treasury advisers, to undertake such rescheduling only if revenue savings or additional cost avoidance can be achieved at minimal risk in line with organisational considerations and with regard to the Housing Revenue Account (HRA) as set out in the Council's Finance Strategy 2015-2019.
   3. That delegated authority be given to the Assistant Chief Executive (Corporate Resources and Section 151 Officer) to make any necessary decisions to protect the Council's financial position in light of market changes or investment risk exposure 
2. The Annual Investment Strategy as set out in paragraph 3.5 and as detailed in Appendix B of the Cabinet report.
3. That the Affordable Borrowing Limits (required by Section 3 of the Local Government Act 2003) as set out in paragraph 3.6 of the Cabinet report and as detailed in Appendix C of that report be as follows:
                                 2016/17              2017/18                2018/19
                               £1,132.6m          £1,216.0m             £1,267.1m
4. The Prudential Indicators as set out in paragraph 3.8 and in Appendix D of the Cabinet report.
5. The Annual Minimum Revenue Provision Policy Statement (required by SI 2008/414) as set out in paragraph 3.9 and as detailed in Appendix E of the Cabinet report.
6. The Council's authorised counterparty lending list as at 31st December 2015 as set out in Appendix F of the Cabinet report and the rating criteria set for inclusion onto this list.

 The recommendations listed above were put and carried; yes - 39; No - 29; abstain: nil (see attached)

The Leader presented the Business Report summarising the proceedings of the Cabinet meeting held on 22 February 2016 relating to Council Tax and Budget process.

In accordance with Council Procedure Rules, written questions had been submitted in advance by Council Members and written replies had been given by the relevant Cabinet Members. The questions and answers had been placed in the Chamber. Supplementary questions were asked by Members of the Council and replies were given by the relevant Cabinet Members.

Each Cabinet Member was asked in turn if they had anything to add to their report. Questions were then invited from the Chamber for each Cabinet Member who replied orally to the questions on specific paragraphs or submitted questions.

The following Members asked questions on the Business Report
Cabinet Member:
Leader: Councillors T Pollard, Pelling, O'Connell, S Khan and Hale
Councillor Hall: Councillors Cummings, Wentworth, Speakman, King
Councillor Butler: Councillor Perry
Councillor Letts: Councillors Wright, Letts, Brew, Perry
Councillor Godfrey: Councillors Hale, Ryan and Bashford.
Councillor Collins: Councillor Thomas

During the period of opportunity to question Councillor Collins, Councillor Thomas asked a series of questions to the Cabinet Member. The Mayor sought clarity on the number of questions which had been asked to the Cabinet Member [Council Constitution Part 4A para 4.07]. Cllr Thomas response appeared to question the Mayor and comments were made to the Mayor. The Mayor clarified if Cllr Thomas was questioning her. He openly stated that he was. The Mayor warned Cllr Thomas [Council Constitution Part 4A para 1.03]. Other comments were made by Cllr Thomas. She then moved that Councillor Thomas leave the Chamber. Cllr Fisher rose up and asked under which procedure Cllr Thomas was being asked to leave the Chamber. The Leader of the Council rose up and suggested that Cllr Thomas may wish to apologise to the Mayor for his comments and behaviour so that the meeting could continue. Councillor Thomas declined. The Chief Executive explained that under the Council Constitution Part 4A section 1.03 a motion had been moved by the Mayor and seconded by the Deputy Mayor that Cllr Thomas should leave the chamber. This was put to be put to a vote by the Mayor. Before the Mayor could do this, Cllr Fisher rose up and requested a Poll Vote. Ten members did not rise in support of the motion [Part 4A para 1.19].The Chief Executive explained that a Poll Vote was at the discretion of the Mayor, and she was not minded to agree [Council Constitution Part 4A 1.16 and 4A 1.02]. The Mayor then put the matter to a vote again and the motion was carried by the Chamber. Cllr Thomas was asked to leave the Chamber by the Mayor.

At 9pm the entire Conservative Group left the Council Chamber.

The meeting continued with questions to Councillor Collins by Councillors Jewitt and Mansell.

Councillor Watson: Councillors Pelling, Lewis and Benn.

Councillor Bee: Councillors Pelling, Fitzsimons, Mann and Jewitt

Councillor Flemming: Councillors Wood, Audsley and Kabir.

The following Cabinet Members made announcements:

Councillor Letts, said she was disappointed with the negativity from the opposition and that the Council should be celebrating that the was a 9.1% increase in businesses in Croydon and that 73% of working age residents were in work, the highest in London and the rest of the UK.

Councillor Godfrey, confirmed that Boxpark would be opening in August to host the Croydon Festival; he went on to announce that £85K had been given to Upper Norwood Library Trust.

Councillor Collins said that time banded collections for trade waste on the high street was being introduced, a pilot exercise which he hoped to roll out to other parts of the borough. Collection times to before 9am and after 6pm. He thanked enforcement officers for their work in this respect.

Council RESOLVED to receive the report.

Full copies of the Council agenda, reports and appendices are available in the
Council website at
www.croydon.gov.uk/democracy/dande/minutes/committees

The webcast of this meeting can be found at www.croydon.gov.uk/democracy/dande/broadcasts