Brent: Full Council barred from discussing RSG freeze and Efficiency Plan

Cllr John Warren's request LINK to the Mayor for discussion of the possibility of an Extraordinary Brent Council Meeting to discuss the freezing of Brent Council's Revenue Support Grant (RSG) for four years  and the consequent Efficiency Plan has been turned down by Council Officers.

The Revenue Support Grant is the main source of funding for local councils but is gradually being phased out

This will mean that both decisions will be made by Brent's CEO and Muhammed Butt, and will not be discussed by the Council or any further by the Cabinet.

In a letter to Warren, Fiona Alderman, Brent Council's Chief Legal Officer stated:

The Mayor has considered your request and has confirmed the his response set out below after having taken advice from officers.

"There are no special circumstances justifying the consideration of this item at this meeting as a matter of urgency. I cannot therefore allow it to be added to the agenda. I would also add that the decision on the Financial Position 2017/18- 2019/20 and option to fix RSG settlement is a function exercisable by the Cabinet and has already been considered by the Cabinet."

Cllr Warren, leader of Brent Conservative Group, commented:

It is totally disgraceful that the  leader is allowed to make such an important decision and Council members will not be able to question/ express a view.

Brent Council budget 'coup' an affront to democracy?

In a posting prior to Monday's Cabinet meeting LINK I drew attaention to the possible decision by the Cabinet to freeze the Council's Revenue Support Grant (RSG) until 2019/20 which would mean setting out an 'efficiency' plan for Council expenditure over the next four years to be submitted to the Department for Communities and Local Government. Due to the timing of Cabinet and Council and government deadlines the Officers' report recommended that these decisions, as well as one on Council borrowing, would not be made by Cabinet or Full Council but by one councillor and one officer in each case.

I wrote:

It is not only the decision in principle that has to be made by Butt and Downs but an 'efficiency plan' submitted that will dictate the level of savings (cuts, 'efficiencies' and income generation) over the next four years.

These are major decisions and I do not understand why the Cabinet cannot convene a special meeting before the deadline to consider Downs' proposal and efficiency plan. The wider Labour Group as well as the opposition seem to have been left out of the process completely but their hands will be tied for the next four years by these decisions.

Put simply the main parameters of the Council's budget decisions will not be made by the Cabinet, Labour Group or Full Council - and certainly not discussed by Labour Party members.  Within that of course there is also the setting of the level of Council Tax.

When these matters come up for debate over the next four years any decisions will have to conform to the efficiency plan.

Given the clear difficulty the Council is already having in delivering 'efficient' services as a result of funding cuts the 'efficiency' plan needs intense scrutiny.

Instead it will be compiled by  Carolyn Downs, Brent Council CEO and Muhammed Butt, Leader o the Coucnil,  and submitted by them before the government deadline. Additionally the Cabinet agreed to delegate the appointment of specialist fianncial advisers to Conrad Hall, the Brent Chief Finance Officer and Cllr Margaret McLennan, Deputy Leader.

The Cabinet Decision sheet records:

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RESOLVED: 2019/20 and option to fix RSG settlements

Cabinet noted the overall financial position and the risks inherent in it.

Cabinet noted the overall arguments for and against accepting a fixed settlement of its RSG until 2019/20, and that on balance the advice is in favour of accepting it.

Cabinet delegated to the Chief Executive and Leader authority to decide whether or not to accept the fixed RSG settlement.

Cabinet delegated to the Chief Executive and Leader authority to submit an efficiency plan to DCLG as part of any decision to accept a fixed RSG settlement.

Cabinet noted the position in particular in respect of business rates devolution and how this might progress, and that the chief finance officer will continue to respond to technical consultations as necessary.

Cabinet noted the progress in developing a financing programme for the investment strategy. 


Cabinet agreed to delegate procurement and appointment of specialist financial advisers to assist in the financing of the investment strategy to the Chief Finance Officer, in consultation with the Deputy Leader

In the light of these issues Cllr John Warren (Leader of Brent Conservative Group) has submitted a request calling for an Extraordinary Full Council meeting to discuss the Efficiency Plan before its submission.

Although his motivation may be to achieve further 'efficiencies' (cuts) and I would strongly disagree with that, the need for democratic decision making and accountability is essential and I think should be shared by Labour backbenchers.

This is Warren's  request:

Mr.Mayor,

I ask that the following item be included as " Any Other Urgent Business " at the meeting on Monday September 19th 2016


Full Council is asked to consider the Cabinet recommendations, noted below made at its meeting on 13 September 2016 in the report " Financial Position 2017/18- 2019/20 and option to fix RSG settlement " by holding an Extraordinary Council Meeting on Thursday 13 October 2016.

       2.3. That Cabinet delegates to the Chief Executive and Leader authority to decide whether or not to accept the fixed RSG settlement.

       2.4.That Cabinet delegates to the Chief Executive and Leader authority to submit an efficiency plan to DCLG as part of any decision to accept a fixed RSG settlement.

REASON FOR REQUEST.....

Every year Full Council considers the annual budget, in detail ,at a special meeting called for  that purpose.

I believe that the Cabinet recommendations, detailed above, are an important part of this budget process .

I believe that Full Council should consider the issue of fixing RSG up until 2019/20,along with consideration of the efficiency plan attached to this deal.

The deadline for submission to DCLG is 14 October 2016  - hence the meeting on the 13 October 2016 will enable Full Council to debate fully these issues with up - to - date information.
      

 
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Powney: Cabinet's 'blatant disregard makes everyone involved look ridiculous'

 

Front page of this week's Kilburn Times

Former councllor James Powney takes up the issue of the Labour Group vote in favour of a Council Tax rise, and the leadership's decision to ignore the vote in his blog LINK

Cllr John Duffy has made a formal complaint to the Coinstiutional officer of the Labour Party over the issue.

This is what James Powney said:

Reports of the discussion of Council Tax increases cause me some embarrassment as a member of the Labour Party.  It seems that the Labour Group debated and voted on the issue, deciding in favour of a rise just short of what would trigger a referendum.  This seems eminently sensible to me for reasons I have explained. 

It now appears that the Executive plan to simply ignore the majority of the Group, and freeze the Council Tax.  I have never heard of such a thing in Brent or in any other authority, or indeed any other party.  Such blatant disregard makes everyone involved look ridiculous.

It is normal for Budgets to be subject to Group whipping, but since the majority voted in favour of an increase, I would have thought the Labour whip is in favour of the increase rather than against it.

Possible Council Tax rise emerges as an option on eve of Budget Consultation deadline

I understand that at last night's Labour group meeting the possibility of a Council Tax increase came back into play with a potential rise of 1.99% for 2015-2016 looked upon favourably by a majority of the group. A straw poll indicated 24 in favour of a Council Tax increase and 6 against.  This would be an annual increase of £30 for Band D residents.

Although Cllr Muhammed Butt opposed an increase at the Civic Centre Public Budget Consultation  that this would hit people already suffering from Coalition cuts the counter-argument is that in terms of social solidarity sharing the burden (with those in higher rated property paying more) would enable the most extreme of the proposed cuts to be avoided.  This would preserve some vital threatened services  to the benefit of poorer residents andwould be better for the Council's long-term stability.

Since 2011 the Council has avoided Council Tax increases, accepting the Government's grant for freezing the tax. Indeed Muhammed Butt has made virtue out of what he sees as necessity by boasting to residents that he has frozen the tax.

However there is an argument that long-term freezing of the Council Tax undermines the Council's revenue base.

This is what Clive Heaphy's Report stated in the First Reading Debate in November 2011 LINK

On 3 October 2011 the government announced a further one-off grant, for 2012-13 only, of £2.6m predicated on the basis that the council does not increase council tax for 2012-13. Each 1% in Council tax equates to approximately £1m of Council spending and members should note that the failure to increase Council tax over a number of years will erode the Council’s underlying revenue position in the longer term.

By January 2012 Ann John had ruled out a rise in the Council Tax as reported by the Brent and Kilburn Times LINK

As I stated at the time: LINK

The [Heaphy] report said that a rise of 2.5% in council tax would close the budget gap as follows:

2012-13 £4.4m
2013-14 £1.1m
2014-15 £19.7m
2015-16 £13.1m

In other words a rise of 2.5% in council tax this year would result in a net gain when the loss of the £2.5m grant is taken into consideration. Some councils are considering this option and some Labour councillors in Brent thought it worthy of debate. However that option appears to have been ruled out in advance of both consultation and decision making.

In November 2012 Assistant Director Finance presented a Budget Report that assumed a 3.5% Council Tax increase (above that triggered a referendum at the time). However the trigger was reduced to 2% (still current).

As I stated on my blog in January 2013 LINK

I understand that there has been discussion in the Brent Executive as to whether to raise Council Tax with the benefit marginal after grant losses and  a reduced collection rate are taken into account. A rise above 2% would have incurred the cost of a local referendum.  It would of course have been another additional cost for people already suffering from benefit cuts and low or frozen wages. An alternative view is that calling the Coalition's bluff and triggering a referendum could result in a proper political debate about the need to adequately fund  local services and the iniquities of the Coalition's grant reduction to local authorities. Only a very small percentage of local government revenue comes from council taxes and charges.

Brent Council leader Muhammed Butt has confirmed via a Facebook interchange with me that there will not be a 2% rise this year. Asked about a possible lower rise he said that the Council was looking at the settlement figures as part of the budgetary process and considering the offer of the freeze grant.

In January 2014 Muhammed Butt said that there were 'no plans' to change policy from freezing Council Tax in the 2014-15 Budget. LINK

I wrote on this blog:

Reflecting on Muhammed Butt's declaration yesterday that there were 'no plans to change course' on freezing council tax for the 2014-15 budget, I wonder what his plans are for 2015-16. In October the Council forecast a deficit for that year of  £34m (see below) a huge amount that on the council's own reckoning will put essential services at risk.

As political parties are deciding their manifestos for the May local elections surely they should be saying something about this crisis waiting for them in their first year of office.

In that respect a manifesto pledge to have a referendum on increasing council tax would make sense. Rank and file Labour party members and the wider public could than have a say and it could provide a launch pad for similar moves by other local authorities.  I do not think increases in council tax are the answer to the huge cuts in local authority funding, that of course requires the restoration of adequate funding, but a national debate post May 2014 leading up to the General Election in 2015 could feed into that demand. It will certainly put the future of local government on the General Election agenda.

Unfortunately despite some efforts at raising the issue and confronting the Coalition with the impact of the cuts, no real movement has emerged and no Referendum challenge..

Brent Council is left with the weakened revenue base that Clive Heaphy warned them about and deeply damaging unpalatable cuts.

It is noteworthy that in the above examples it has been Ann John and Muhammed Butt who appear to have made the decision about a Council Tax rise, although formally of course it is the Full council Meeting.

Where this leaves the Labour Group's support for a modest 1.99% rise, just below the Referendum threshold remains to be seen. Clearly the Cabinet should be taking note of the virews of its own councillors as well as the support shown for services by residents in consultations and in the campaigns that have sprung up to defend services.

If you wish to put your view there is still time to submit a  comment to Brent Council's budget consultation. The deadline is tomorrow, Wednesday February 4th :consultation@brent.gov.uk