The Leader moved the recommendations contained in the business report (attached at agenda item 8). The Leader stated that the budget delivered for Croydon whilst protecting front-line services. It provided certainty for families and the administration had done everything in its power to ensure the elderly and vulnerable were protected. The social care precept would be implemented to ensure the elderly could live in dignity and the Leader stated that if the opposition Members had compassion they would support the budget and send a message to central Government that bargaining with local authorities was wrong.
The Leader stated that Croydon Labour had the vision for an ambitious manifesto and was delivering on the commitments made. With the fractured political climate, that included Brexit, local politics mattered and could make a difference to people's lives. The administration had brought the budget under control and was delivering on key projects, such as the new community centre in New Addington, the new Fairfield Halls and College Green development, that the Leader stated had been shamefully opposed at Planning Committee by the Conservative Members.
The Leader listed some of the key achievements by the administration:
The Council had become a London Living Wage employer,
Affordable housing was being delivered
Standards in the private rental sector were being improved through the landlord licensing scheme
The borough's streets were cleaner and safer
The Council was working with the Mayor of Croydon on many key pan-London issues
The budget was referred to as "the Croydon Deal"; the Council was working in partnership with local people on a number of developments including the Tech Hub and the growth in the cultural and artistic scene in the borough. The work would turn Croydon into a 21st century global city; a city of culture, music and creativity. Large employers were moving to the borough such as Body Shop and the Civil Service, which, the Leader claimed, was in stark contrast to when the Conservative administration was in power and Nestle vacated their headquarters in Croydon.
The Leader announced that in the next eighteen months the Civil Service would be bringing 6,000 jobs to Croydon. Over the next 12 months plans would be set in place to make Croydon the greenest and most sustainable borough through schemes such as the expansion of cycle highways and working with the Mayor of London on air quality in the capital.
Under Croydon Labour, the Leader stated, true devolution of power would be delivered to local residents through schemes such as the community Ward budgets. This was in comparison to the Conservatives who wanted to reduce the number of Councillors in Croydon.
The Leader stated he was proud to move the budget which provided economic competence, value for money and the protection of front line services. This was in comparison to the previous Conservative administration that had cut every service yet built a new Council office for themselves. The Leader stated that under Labour this would never happen again.
Councillor Butler seconded the motion and reserved her right to speak.
Councillor Tim Pollard stated that the proposed tax rises were the highest increase in London and the highest rate the borough had ever set. The proposed budget delivered the highest debt the borough had ever undertaken and the biggest departmental overspend. Councillor Pollard stated that the Labour administration had lost control of the budget, with particular reference to the People department overspend. The Leader had attempted to blame it all on central government and contrary to what the Leader had stated there had been no evidence of "sweetheart" deals by central government. Residents did not fall for Labour's accusations, as had been seen in the Copeland by-election. The Leader had failed to mention where Croydon benefited from central government - such as through the National Schools Fund.
Councillor Pollard stated that the proposed budget was about "spin" to deflect from the high levels of debt, which was out of control. Half a million pounds had been apportioned to Brick by Brick yet no information on a business plan had been brought to Cabinet the previous week. Croydon needed more housing but not at any cost.
In addition, Councillor Pollard stated that Labour was not listening to residents. An example was the Fairfield Halls development in which the Council claimed it could not afford a phased development to keep it open, yet the proposed budget included £4m from central government. Other examples were provided such as the garden waste collection service, the local plan, the Purley skyscraper and 20mph speed limit zones.
Councillor Pollard stated Labour had failed to deliver, such as fly tipping where Conservative Councillors visited every Ward and found significant fly-tipping. The new contract for cleaning services was cheaper, but only because the Council had gifted the contractor new machinery.
Councillor Pollard stated that the administration was failing to keep the Adult Social Care budget under control. He claimed that Labour talked competence but only delivered more debt and that the proposed tax rises were the tax-payer bailing out Labour once again.
Councillor Butler stated that the proposed budget was about aspiration. Due to the context of central government cuts it was the best budget possible. The budget put frontline services and residents first with schemes such as the new Fairfield Halls development, public art and culture, new public realm and street lighting, and large employers moving to Croydon. The budget would ensure that no one was left behind by the new changes in the borough, through education, homes and jobs.
Education would be promoted through new schools being built and upgrades of current schools across the borough. A new campus would be built in the heart of Croydon; a purpose built development to reflect the changes in education.
Brick by Brick would ensure that modern homes were built across the borough with good designs and were truly affordable. In the private rental sector, the Council would ensure homes were safe and of good quality through the landlord licensing scheme. The Gateway service was also ensuring that homelessness was prevented by targeting those hardest hit by the central government cuts.
Finally, jobs were being created through the new tech city and local pop-up shops and enterprises supported by the Council. Croydon was a certified London Living Wage borough and the Council's job brokerage scheme ensured that residents would benefit from Croydon's significant growth.
Croydon needed a Council fighting for their residents, and this proposed budget was on the side of residents.
Councillor Hale stated that there was a housing crisis that effected hundreds of families in Croydon. There were a significant number of families in bed and breakfast or temporary accommodation and the average wait time for a family-sized Council property was five years. Labour had stated in their manifesto that they would build new Council homes yet three years later none had been started or completed. This situation was due to the administration's mismanagement with the dismantling of the Housing Department.
The previous Conservative administration had delivered 105 new homes and planned more but this had been stopped when the Labour administration came to power in 2014. Instead the Council were putting significant money into Brick by Brick, which Councillor Hale claimed was secretive and little information of its activities were available. There was no publicly available information on debt repayment priorities or corporate risk management.
Councillor Collins stated that the proposed budget was positive and ambitious and would get things done. Councillor Collins claimed that central government was cutting grants to local authorities in an unfair manner, as was exposed recently at Surrey County Council. Despite this, the administration refused to be a victim and would act optimistically with projects such as the significant investment in street cleaning equipment and vehicles. Savings made through the increased efficiency by this machinery would be invested back into the service and a better contract for street cleaning would come into effect in 2018. Despite such achievements, Councillor Collins claimed, the opposition party displayed nothing but negativity through social media channels such as Twitter, and falsely claimed that the administration did not listen, despite the numerous street commission and resident meetings attended. An example was the Purley Oaks depot, that had been overcrowded due to neighbouring Surrey County Council closing their centres in the vicinity. Councillor Collins stated that he had listened to residents' concerns and now a significantly better service was in place which residents were very pleased with.
Councillor Helen Pollard stated that the Fairfield Halls development had already fallen behind schedule with the opening date moved from July 2018 to November 2018. In addition, the development was dependent on the property market which Councillor Pollard considered a significant risk and that it would be taxpayers' money that would be relied on if it failed. The administration had claimed that a phased development could not be afforded and yet there was £5m in the proposed budget for a new gallery at Fairfield Halls. Councillor Pollard stated that spending was spiralling out of control and the Fairfield Halls development could make the situation worse. It was stated that there had been no public participation in the development; residents had been ignored and there was a risk that the new operator would not provide for community use of the new site.
Councillor Woodley stated that adult social care was facing a national funding crisis. Central government had stated that the funding would be met by the precept but this would not meet the full income required in Croydon. There had been an £8m growth that needed to be met, despite the administration transforming social care to ensure the elderly and vulnerable could live with dignity and independence. The Gateway team at the Council were doing an excellent job of keeping people in their homes despite the extreme welfare reforms from central government. Councillor Woodley gave examples of Croydon residents who had had their disability benefits re-assessed and refused despite significant ailments. Councillor Woodley stated that policy makers in central government should visit these residents in Croydon to witness the impact of the welfare reforms to Croydon residents.
Councillor Perry stated that the budget was out of control and that taxes were being imposed in order for the administration to spend. It was stated that in this context the significant overspend in the People department was of no surprise. By contrast, there was no overspend on the regeneration sections of the budget due, Councillor Perry claimed, to the borough's regeneration grinding to a halt. It was stated that the administration had failed to deliver on regeneration projects aside from ones delivered by the previous administration. The Fairfield Halls development was an example where the project was behind schedule, would provide low standard housing and required money from Coast to Capital to keep the scheme going. There had been considerable changes to the regeneration team and it appeared that the Council did not even hold leverage over Westfield Hammerson to ensure that major project was delivered on time. Councillor Perry stated that where money was being spent, it was ineffective. Examples were given such as Surrey Street and Box Park, the latter of which, it was claimed, was not a London Living Wage employer and was causing local businesses to close down.
Councillor Henson stated that despite the huge budget cuts the borough had faced, the administration had brought the budget under control and delivered significant achievements across the borough. The Councillor's own ward of Ashburton was proffered as an example where a new child development centre had been opened and the work undertaken on the old library building which was due to open in July 2017 and would become a community hub for the ward. The Ward budgets scheme had also brought good programmes to the Ward such as art projects and money mentoring sessions. Despite the central government cuts, significant estate upgrades had taken place in areas of the borough that the previous administration had neglected. Frontline services were being maintained despite the austerity measures and the tax increase was being kept below inflation.
Councillor Hopley stated that a Labour administration meant tax rises and out of control budgets. It was claimed that the Cabinet Member for Families, Health and Social Care had failed to keep control of the People department budget as evidenced by the large overspend. In addition, a committee with Councillor Hall had been set up to look at the overspend issue yet its activities had taken place behind closed doors and in any event, the People department overspend had since doubled. Councillor Hopley made comments questioning whether Councillor Hall was a qualified accountant.
Councillor Hall made a point of order for a personal explanation related to Councillor Hopley's comments. Councillor Hall stated that he was a chartered accountant and that Councillor Hopley's comments were an insult that should not be heard in the Council Chamber.
Councillor Hopley withdrew her comment, and continued that officers in the People department had been working very hard but were being diverted instead to the creation of a report in which no information was available.
Councillor Wentworth stated that the proposed budget delivered for the people of Croydon and was a significant achievement by Councillor Hall and the officers involved. The budget was remarkable, Councillor Wentworth claimed, given the financial problems that had been left behind by the Conservative administration, that had previously been described as "gloom and bust". It was stated that the previous administration had left Croydon as the fly-tip capital of London, however under the new administration prosecutions and fines for fly-tipping were at a record high. It was stated that the previous administration had tried to sell off and close the borough's libraries, neglected the district centres and parks, and yet spent huge sums on the new Council offices. Councillor Wentworth claimed that the previous Conservative Leader of the Council had stated to the press that there was a £100m black hole in the Council's funds.
This budget would keep promises made by the administration such as clean streets, new homes, cultural life investments, and to keep Upper Norwood library open.
Councillor Cummings stated that the Labour leadership was refusing to take responsibility for their actions and was instead blaming everyone else. The strategy for Croydon appeared to be to increase debt and increase tax and the budget was spiralling out of control. It was stated that the majority of Councils in London had not put up Council Tax to the limit like the administration was proposing for Croydon. Councillor Cummings stated that Council Tax was being raised to cover for the administration's failures and thus residents were losing out. Councillor Cummings listed the London boroughs that had not increased Council Tax by the same level as was proposed for Croydon. The Councillor stated that "Corbynomics" was being practised in Croydon by the administration and it had failed.
Councillor Hall paid tribute to Finance officers for the work undertaken on the budget. It was stated that the context could not be more difficult: with an inherited £100m black hole in the Council's finances and significant cuts in funding from central government. In addition there were huge additional pressures on Council services due to the welfare reforms, reduction in public health funding and national lack of housing. Councillor Hall stated that the administration had put the Council's finances on a solid footing by utilising the Council's assets and embracing modern technology to drive efficiency. The Council had promoted a joined up approach in the People Department in areas such as the Gateway service and adult care transformation. Investment was being made in housing and the growth zone, in new schools, the Fairfield Halls development and the New Addington community centre.
Councillor Hall claimed that the opposition had no alternative budget and would reverse the good measures that had been made. The administration had shown its commitment to devolution through the introduction of Ward budgets and it was announced that these budgets would be doubled in the coming year. It was stated that three years ago the Council was in financial crisis. Since that time the Labour administration had weathered the central government cuts and brought the budget under control.
At the conclusion of the debate the Chief Executive explained that the votes on the Council Tax and Adult Social Care precept would be taken via a poll vote as required by legislation. The remaining recommendations contained in the business report would be conducted via an ordinary vote.
Recommendation 1.1(I): A 1.99% increase in the Council Tax for Croydon Services
The recommendation was put to a poll vote:
Members who voted in favour: Councillor H Ali, Councillor J Audsley, Councillor J Avis, Councillor K Bee, Councillor C Bonner, Councillor A Butler, Councillor R Canning, Councillor S Chowdhury, Councillor P Clouder, Councillor S Collins, Councillor S Fitzsimons, Councillor A Flemming, Councillor T Godfrey, Councillor S Hall, Councillor P Hay-Justice, Councillor M Henson, Councillor K Jewitt, Councillor H Kabir, Councillor B Khan, Councillor S King, Councillor T Letts, Councillor O Lewis, Councillor S Mann, Councillor M Mansell, Councillor T Newman, Councillor A Pelling, Councillor J Prince, Councillor A Rendle, Councillor P Ryan, Councillor P Scott, Councillor M Selva, Councillor M Shahul-Hameed, Councillor W Trakas-Lawlor, Councillor M Watson, Councillor J Wentworth, Councillor D Wood, Councillor L Woodley, Councillor C Young.
Members who voted against: Councillor J Bains, Councillor S Bashford, Councillor S Bennett, Councillor M Bird, Councillor S Brew, Councillor J Buttinger, Councillor R Chatterjee, Councillor L Clancy, Councillor M Creatura, Councillor J Cummings, Councillor M Gatland, Councillor L Hale, Councillor S Hollands, Councillor Y Hopley, Councillor D Mead, Councillor M Mead, Councillor V Mohan, Councillor M Neal, Councillor S O'Connell, Councillor J Perry, Councillor H Pollard, Councillor T Pollard, Councillor B Quadir, Councillor D Speakman, Councillor A Stranack, Councillor P Thomas, Councillor S Winborn, Councillor C Wright.
The recommendation was carried: 38 Yes; 28 No; Abstain - 0
Recommendation 1.1(II): A 3% increase in the Adult Social Care precept (a charge Central Government has assumed all Councils will levy in its spending power calculations).
The recommendation was put to a poll vote:
Members who voted in favour: Councillor H Ali, Councillor J Audsley, Councillor J Avis, Councillor K Bee, Councillor C Bonner, Councillor A Butler, Councillor R Canning, Councillor S Chowdhury, Councillor P Clouder, Councillor S Collins, Councillor S Fitzsimons, Councillor A Flemming, Councillor T Godfrey, Councillor S Hall, Councillor P Hay-Justice, Councillor M Henson, Councillor K Jewitt, Councillor H Kabir, Councillor B Khan, Councillor S King, Councillor T Letts, Councillor O Lewis, Councillor S Mann, Councillor M Mansell, Councillor T Newman, Councillor A Pelling, Councillor J Prince, Councillor A Rendle, Councillor P Ryan, Councillor P Scott, Councillor M Selva, Councillor M Shahul-Hameed, Councillor W Trakas-Lawlor, Councillor M Watson, Councillor J Wentworth, Councillor D Wood, Councillor L Woodley, Councillor C Young.
Members who voted against: Councillor J Bains, Councillor S Bashford, Councillor S Bennett, Councillor M Bird, Councillor S Brew, Councillor J Buttinger, Councillor R Chatterjee, Councillor L Clancy, Councillor M Creatura, Councillor J Cummings, Councillor M Gatland, Councillor L Hale, Councillor S Hollands, Councillor Y Hopley, Councillor D Mead, Councillor M Mead, Councillor V Mohan, Councillor M Neal, Councillor S O'Connell, Councillor J Perry, Councillor H Pollard, Councillor T Pollard, Councillor B Quadir, Councillor D Speakman, Councillor A Stranack, Councillor P Thomas, Councillor S Winborn, Councillor C Wright.
The recommendation was carried: 38 Yes; 28 No; Abstain - 0
The remaining recommendations as contained in the business report:
1.1:
III. Note the GLA increase of 1.5% (the increase is solely associated with the Police budget).
With reference to the principles for 2017/18 determined by the Secretary of State under Section52ZC (1) of the Local Government Finance Act 1992 (as amended) confirm that in accordance with s.52ZB (1) the Council Tax and GLA precept referred to above are not excessive in terms of the most recently issued principles and as such to note that no referendum is required. This is detailed further in section 5.4 of the report (Cabinet Report 6.1: General Fund & HRA Budget 2017/20).
IV. The calculation of budget requirement and council tax as set out in Appendix D and E of the report (Cabinet Report 6.1: General Fund & HRA Budget 2017/20). Including the GLA increase this will result in a total increase of 4.3% in the overall council tax bill for Croydon.
V. The three year revenue budget assumptions as detailed in the report (Cabinet Report 6.1: General Fund & HRA Budget 2017/20) and the associated appendices:-
Appendix A The programme of revenue savings and growth by department for 2017/20.
Appendix B The Council's detailed budget book for 2017/18.
VI. The Capital Programme as set out in section 12, table 22 and 23 of the report (Cabinet Report 6.1: General Fund & HRA Budget 2017/20).
VII. The continuation of the Council's existing Council Tax Support Scheme in 2017/18 as detailed in section 10.4 of the report (Cabinet Report 6.1: General Fund & HRA Budget 2017/20).
VIII. The adoption of the Pay Policy statement at Appendix H of the report (Cabinet Report 6.1: General Fund & HRA Budget 2017/20).
1.2 Council notes that Cabinet was requested to agree:
I. A rent decrease for all Council tenants for 2017/18, in line with the Government's social rent policy which has legislated to reduce social rents by 1%.
II. Garage and Parking space rents will increase by 2 % per week.
III. The service charges for caretaking, grounds maintenance and bulk refuse collection will increase by 2% per week as detailed in section 11
2. Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement & Annual Investment Strategy 2017/18
2. Cabinet recommends Council to approve:
2.1 The Treasury Management Strategy Statement 2017/2018 as set out in the report (Cabinet Report 6.2: Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement & Annual Investment Strategy 2017/18) including the recommendations that:
2.1.1. The Council takes up the balance of its 2016/2017 borrowing requirement and future years' borrowing requirements, as set out in paragraph 3.6 of the report (Cabinet Report 6.2: Treasury Management Strategy Statement).
2.1.2. That for the reasons detailed in paragraph 3.11 of the report (Cabinet Report 6.2: Treasury Management Strategy Statement), opportunities for debt rescheduling are reviewed throughout the year by the Executive Director of Resources and Section 151 Officer and that, he be given delegated authority, in consultation with the Cabinet Member for Finance and Treasury and 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 2016-2020.
2.1.3 That delegated authority be given to the Executive Director of Resources and Section 151 Officer, in consultation with the Cabinet Member for Finance and Treasury, to make any necessary decisions to protect the Council's financial position in light of market changes or investment risk exposure.
2.2 The Annual Investment Strategy as set out in paragraph 3.14 of the report (Cabinet Report 6.2: Treasury Management Strategy Statement).
2.3 That the Authorised Borrowing Limits (required by Section 3 of the Local Government Act 2003) as set out in paragraph 3.7 of the report (Cabinet Report 6.2: Treasury Management Strategy Statement) and as detailed in the associated Appendix C be as follows:
2017/2018 2018/2019 2019/2020
£1,234.442m £1,365.442m £1,372.442m
The Prudential Indicators as set out in the associated Appendix C of the report (Cabinet Report 6.2: Treasury Management Strategy Statement).
2.4 The Annual Minimum Revenue Provision Policy Statement (required by SI 2008/414) as set out in Appendix D of the report (Cabinet Report 6.2: Treasury Management Strategy Statement).
2.5 The Council's authorised counterparty lending list as at 31st December 2016 as set out in Appendix E of the report (Cabinet Report 6.2: Treasury Management Strategy Statement) and the rating criteria set for inclusion onto this list.
The recommendations were put to the vote and carried.