Agenda item

It was moved by Councillor Harry Harpham, seconded by Councillor Mary Lea, that the following decisions taken by the Cabinet at its meeting held on 19th February, 2014, arising from its consideration of (a) a joint report of the Chief Executive and the Executive Director, Resources on the Revenue Budget 2014/2015 and (b) a report of the Executive Director, Resources on the Capital Programme 2014/2015 be approved:-

REVENUE BUDGET 2014/15

“RESOLVED: That the City Council, at its meeting on 7^th March, 2014, be recommended to:-

(a)

approve a net Revenue Budget for 2014/15 amounting to £451.248m;

(b)

approve a Band D equivalent Council Tax of £1282.75 for City Council services, i.e. at the same level as 2013/14;

(c)

approve the Revenue Budget allocations and Budget Implementation Plans for each of the services, as set out in Appendix 2 of the report;

(d)

note that, based on the estimated expenditure level set out in Appendix 3 to the report, the amounts shown in part B of Appendix 6 would be calculated for the City Council for the year 2014/15, in accordance with sections 32 to 36 of the Local Government Finance Act 1992;

(e)

note the information on the precepts issued by the South Yorkshire Police Authority and the South Yorkshire Fire and Civil Defence Authority, together with the impact of these on the overall amount of Council Tax to be charged in the City Council’s area;

(f)

approve the proposed amount of compensation to Parish Councils for the loss of council tax income in 2014/15 at the levels shown in the table below paragraph 186”

(g)

approve the proposed changes to empty property discounts in respect of Council Tax

(h)

note the latest 2013/14 budget monitoring position;

(i)

approve the Treasury Management and Annual Investment Strategies as set out in Appendix 7 to the report and the recommendations contained therein;

(j)

approve the Minimum Reserve Provision (MRP) Statement set out in Appendix 7 to the report; and

(k)

delegate authority to the Director of Finance to undertake Treasury Management activity, to create and amend appropriate Treasury Management Practice statements and to report on the operation of Treasury Management activity on the terms set out in those documents.”

CAPITAL PROGRAMME 2014/15

“RESOLVED: That the City Council, at its meeting on 7^th March, 2014, be recommended to:-

(a)

approve those specific projects included in the years 2013-14 to 2017-18 programmes as at Appendix 8 of the report. Block allocations were included within the programme for noting at this stage and detailed proposals will be brought back for separate Member approval as part of the monthly monitoring procedures;

(b)

note the proposed Capital Programme for the 5 years to 2017/18 as per Appendix 8 to the report; and

(c)

approve the allocations from the Corporate Resource Pool (CRP) and the policy outlined in Appendix 4 to the report such that the commitment from the CRP is limited to 1 year and no CRP supported schemes are approved beyond 2014-15. (If substantial capital receipts are realised within 2013-14 or 2014-15 a further report will be brought to Members as part of the monthly approval process).”

Whereupon, it was moved by Councillor Ben Curran, seconded by Councillor Julie, Dore, as an amendment, that the recommendations of the Cabinet held on 19^th February, 2014, as relates to the City Council's Revenue Budget and Capital Programme 2014/15, be replaced by the following resolution:-

RESOLVED: That this Council:

(1)

continues to oppose the unfair cuts imposed on Sheffield by the Government and recognises that by 2015/16 the amount of funding the Council receives from central government will have been cut by over 50%;

(2)

regrets that local government has been targeted disproportionately for cuts, noting that despite only accounting for 7% of public spending it has taken 22% of cuts and recalls comments by The Rt. Hon. Danny Alexander MP, Chief Secretary to the Treasury, that local government has “borne the brunt of deficit reduction”;

(3)

believes that the Government continue to target Sheffield alongside towns and cities in the north of England at the same time as some of the wealthiest areas in the country are receiving just a fraction of the cuts;

(4)

confirms that in the financial year 2014/15 the Council will have to generate savings of around £58 million and remains fundamentally disappointed that despite the Administration’s continuous pleas to the Liberal Democrats - both at national and local levels - to stand up for Sheffield, they are not acting as a check on the Conservative-led Government;

(5)

notes recent research highlighting the total cuts per household between 2013/14 and 2015/16 see Sheffield losing a total of £308 whilst Windsor & Maidenhead lost only £87 and Wokingham lost £86;

(6)

further notes the recent Joseph Rowntree Foundation Report, ‘Coping with the cuts? Local government and poorer communities’ states that “Cuts in spending power and budgeted spend are systematically greater in more deprived local authorities than in more affluent ones”;

(7)

in addition recognises that these cuts are in addition to increasing cost pressures facing the Council such as rising costs in adult social care, putting local government finance under unsustainable pressure;

(8)

notes recent research has suggesting that by 2015/16 Sheffield will have a similar level of spending power to Surrey and believes that this is fundamentally unfair due to the higher levels of deprivation in Sheffield and Surrey being one of the most affluent areas of the country;

(9)

is shocked that the main opposition group continue to support the cuts imposed on Sheffield and believes that they are more concerned about standing up for the Member of Parliament for Sheffield Hallam, than standing up for Sheffield;

(10)

believes it is completely hypocritical of the main opposition group to attempt to mislead the public with their crocodile tears over individual cuts to Council services when they continue to support the unprecedented level of cuts that the Government are making which is impacting on the services many councils can provide;

(11)

further believes that the main opposition group’s continued attempts to mislead local people about Council spending are disgraceful and that this not only denigrates the work of Council officers but is nothing more than a desperate attempt of the main opposition group to deflect the responsibility from the Deputy Prime Minister for making unprecedented levels of cuts to local government which are targeted unfairly at Sheffield at the same time as Conservative-held shires have been given greater protection;

(12)

regrets that cuts to Council spending is not the only area where the main opposition group have failed to stand up for Sheffield and recalls that they have supported the Government’s decision to re-allocate European Union funding away from Sheffield which was recently ruled as unlawful by the High Court;

(13)

further regrets that another example of the main opposition group’s failure to stand up for Sheffield is their embarrassing silence on the issue of HS2 station location following the Government announcement that its preferred station location for Sheffield City Region is at Meadowhall despite overwhelming economic evidence which demonstrates that an additional 6,500 jobs could be generated by locating the station at the old Sheffield Victoria station, and the fact that in 2012 the Leader of the main opposition group launched a public campaign outside the Victoria station site and wrote an article which included the words “Locating the station somewhere miles out of the City would be a missed opportunity” and “This issue is too important to sit on the fence”;

(14)

agrees with the following comments by the Shadow Cabinet Spokesperson for Business, Skills and Development “Locating the station somewhere like Meadowhall would see passengers travel four miles out of the city and therefore the improved journey time to London would be negated. We believe to maximise the benefits of High Speed Rail the station must come to the city centre – and that the old Sheffield Victoria station would make a great location”;

(15)

contrasts the main opposition group’s failure to stand up for Sheffield with the action of the present Administration who have supported the Fair Deal for Sheffield Campaign and lobbied the Government for a fairer funding deal through numerous meetings and letters to Government Ministers, however, regrets that these pleas have continued to fall on deaf ears;

(16)

notes the contrast with Birmingham City Council where all political parties have come together to make representations to the Government about the impact of the cuts on their city;

(17)

confirms that it is impossible to take such a significant amount of the Council’s budget away without having a significant impact on the services that the Council can provide and calls on all parties represented on the Council to come together on a non-political basis to make representations to the Government to receive a fair funding settlement for Sheffield;

(18)

thanks all members of staff across the Council who have contributed to achieving a balanced budget for 2014/15, in this extremely challenging financial climate;

(19)

notes that as a result of budget cuts there could be up to 600 Council posts affected during the financial year 2014/15, including job roles that could be lost through voluntary severance or voluntary early retirement as well as any vacancies that have not been filled;

(20)

expresses sincere and heartfelt sympathy to those members of staff who are losing their jobs through compulsory redundancy and regrets that the Government’s cuts agenda has made compulsory redundancies unavoidable;

(21)

notes that the Council workforce has now had to contend with real-term pay reductions over the past four years and notes that pay increments have been frozen since pre-April 2011;

(22)

welcomes the proposal of the present Administration to give an additional £250 to all staff earning under £21,000, noting that this will support Council staff on the lowest incomes and comes on top of the implementation of the Living Wage last year; 

(23)

reiterates its thanks to the whole of the Council’s workforce for continuing to work hard to serve Sheffield during extremely difficult circumstances and continues to value the hard work and public sector ethos of Council staff;

(24)

recognises that the present Administration has taken all possible action to make savings without hitting frontline services through reducing management costs, accommodation costs and other efficiency measures but the reality is that it is not possible to make the level of cuts that the Government are making to the budget without there being a serious impact on front line Council services;

(25)

however welcomes that the present Administration have made it a priority to provide the greatest level of protection to the services for the vulnerable, which have received a lower level of cut than the Council as a whole, however, regrets that due to the level of cuts imposed by the Government it has not been possible to exempt such services from budget reductions; 

(26)

notes that cuts to the South Yorkshire Passenger Transport Executive Budget have meant changes to discretionary bus passes will mean that free bus travel will only take effect from 9:30 a.m;

(27)

is concerned about the potential for this to impact on the ability of disabled bus pass holders to access education and believes that young people should not be financially disadvantaged due to a disability;  

(28)

therefore directs that instead of providing a 1% increase in Members’ allowances, in line with the increase in officer pay, this funding should be used to establish a scheme which will be accessed to mitigate against young people facing greater costs to access education which are unavoidable due to a disability;

(29)

welcomes the present Administration’s decision to freeze Council tax for the third consecutive year, helping to mitigate against the cost of living crisis inflicted by the present Government;

(30)

further welcomes the action taken by the present Administration to invest in projects to support the local economy, noting the following as just a few examples:

(i)         The Skills Made Easy Programme;

(ii)        Sheffield Apprenticeship Programme;

(iii)       RISE graduate internship programme;

(iv)       Start up loans for young people;

(v)        SME Loan Fund;

(vi)       Export Pilot project for 30 companies;

(vii)      Launched Threshold Companies Initiative for growth SMEs;

(viii)     Summer Saturdays;

(ix)       Developed Sheffield City Region Investment Fund;

(x)        Secured Tax Increment Finance scheme for city centre – 1 of 3 places in UK;

(xi)       Enterprise programme provided intensive support to over 200 growing SMEs and 150 start ups;

(xii)      Launch of the Sheffield Economic Masterplan; and

(xiii)     Series of business summits held, hundreds of businesses engaged;

(31)

welcomes the success of the Keep Sheffield Working Fund which has now been spent on valuable projects to support the economy which is in sharp contrast to the Government’s Regional Growth Fund, which is more than 80% unspent despite the fund being several times oversubscribed with bidders and believes that this is just the latest example of the present Government’s complete failure to take action to secure a long term sustainable economic recovery;

(32)

believes that it should be a priority for the Council to continue to invest in growing the local economy and therefore directs that the ‘Keep Sheffield Working Fund’ should receive a further £200,000 of investment;

(33)

further supports the calls that have been made by the present Administration and the Core Cities Group for greater devolution, recognising that decisions around public spending are best made by local leaders and businesses, specifically supporting the Core Cities Prospectus for Growth, and welcomes the actions of the present Administration working alongside Sheffield City Region partners to establish the Combined Authority providing the region with greater opportunity to take control over its economic destiny;

(34)

accordingly instructs the Executive Director, Resources to implement the City Council’s Revenue Budget and Capital Programme 2014/2015 in accordance with the details set out in the reports on the Revenue Budget and Capital Programme now submitted with the following amendments:-

Spend

Income/saving

£'000

£'000

Rejecting 1% increase in Members’ allowances

12

Changes to empty property discounts in respect of Council Tax

                     200

Fund to mitigate against impact of Transport Authority changes to bus passes on the ability of disabled children to travel to education

12

Keep Sheffield Working Fund

200

212

212

(35)

approves those specific projects included in the 2013/14 to 2017/18 Capital Programme at Appendix 8 of the report on the Capital Programme 2014/15 to 2016/17, with block allocations being included within the Programme for noting at this stage and detailed proposals will be brought back for separate Member approval as part of the monthly monitoring procedures;

(36)

notes the proposed Capital Programme for the 5 years to 2017/18 as per Appendix 8 of the report on the Capital Programme;

(37)

approves the allocations from the Corporate Resource Pool and the policy outlined in Appendix 4 of the report on the Capital Programme such that the commitment from the CRP is limited to one year and no CRP supported schemes are approved beyond 2014-15, and if substantial capital receipts are realised within 2013-14 or 2014-15 a further report will be brought to Members as part of the monthly approval process;

(38)

after noting the joint report of the Chief Executive and the Executive Director, Resources now submitted on the Revenue Budget 2014/15, approves and adopts a net Revenue Budget for 2014/15 amounting to £451.248m, as set out in Appendix 3 of that report, and subsequently amended in the light of paragraph 34 above, as follows:-

Summary Revenue Budget

Original

Proposed

Budget

Budget

2013/14

2014/15

£000

£000

Portfolio budgets:

81,274

Children Young People and Families

70,612

160,883

Communities

156,726

101,960

Place

99,611

8,741

Policy Performance and Communications

2,358

57,985

Resources

55,541

410,843

384,848

Corporate Budgets:

Specific Grants

-1,642

         Council Tax Freeze Grant for 2013/14

0

0

         Council Tax Freeze Grant for 2014/15

-1,968

-9,683

         NHS Funding

-12,399

0

         Business Rates Transitional Grant

-1,079

-65,068

         PFI Grant

-71,116

-4,479

         New Homes Bonus (LGF)

-6,397

Corporate Items

9,000

      Redundancy Provision

11,200

1,000

      Pension Costs

9,750

1,229

      Digital Region

0

500

      Hardship Fund

500

-500

      Review of Management Costs

0

-450

      Improved debt collection

-250

6,642

      New Homes Bonus (LGF)

5,036

-3,400

      Public Health Savings

0

400

      Keep Sheffield Working Fund

200

3,000

      Contingency - Adults Social Care Pressures

3,716

24,344

      Schools and Howden PFI

24,747

0

      Enhancements

-1,300

0

      Infrastructure Investment in NRQ / St Pauls Place

400

82

      Payment to Parish Councils

82

1,000

      Fairness Commission

0

2,402

      Other

2,874

34,694

ITA Levy

31,384

38,237

Capital Financing costs

37,282

35,275

MSF capital financing costs

28,117

-6,000

Contribution from Reserves

5,621

477,426

Total Expenditure

451,248

Financing of Net Expenditure

-190,105

Revenue Support Grant

-157,460

-95,265

NNDR/Business Rates Income

-100,898

-27,800

Business Rates Top Up Grant

-28,342

-164,256

Council Tax income

-164,377

0

Collection Fund surplus

-171

-477,426

Total Financing

-451,248

(39)

approves a Band D equivalent Council Tax of £1,282.75 for City Council services, i.e. at the same level as 2013/14;

(40)

approves the Revenue Budget allocations and Budget Implementation Plans for each of the services, as set out in Appendix 2 of the Revenue Budget report, subject to the amendments outlined in paragraph 34 above;

(41)

notes the latest 2013/14 budget monitoring position;

(42)

approves the Treasury Management and Annual Investment Strategies set out in Appendix 7 of the Revenue Budget reportand the recommendations contained therein;

(43)

approves the Minimum Revenue Provision (MRP) Statement set out in Appendix 7 of the Revenue Budget report;

(44)

agrees that authority be delegated to the Director of Finance to undertake Treasury Management activity, to create and amend appropriate Treasury Management Practice Statements and to report on the operation of Treasury Management activity on the terms set out in these documents;

(45)

approves the proposed amount of compensation to Parish Councils for the loss of council tax income in 2014/15 at the levels shown in the table below paragraph 186 of the Revenue Budget report;

(46)

approves the proposed changes to empty property discounts in respect of Council Tax, as set out in the Revenue Budget report;

(47)

agrees that the Members' Allowances Scheme for 2013/14 and onwards, approved by the Council on 15th May, 2013, be also implemented for 2014/15, but no annual increase be implemented during 2014/15 in relation to Basic, Special Responsibility (including the Pensions Authority), Co-optees and Dependent Carers’ Allowances;

(48)

approves a Pay Policy for 2014/15 as set out in Appendix 8 of the Revenue Budget report;

(49)

notes that, based on the estimated expenditure level of £451.248m set out in paragraph 38 above, the amounts shown in part B below would be calculated by the City Council for the year 2014/15, in accordance with Sections 32 to 36 of the Local Government Finance Act 1992;

(50)

notes the precepts issued by local parish councils which add £490,789 to the calculation of the budget requirement in accordance with Sections 31 to 36 of the Local Government Finance Act 1992;

(51)

notes the information on the precepts issued by the South Yorkshire Police and Crime Commissioner and the South Yorkshire Fire and Civil Defence Authority, together with the impact of these on the overall amount of Council Tax to be charged in the City Council’s area;

Appendix 6a

CITY OF SHEFFIELD

CALCULATION OF RECOMMENDED COUNCIL TAX FOR 2014/15 REVENUE BUDGET

1.

It be noted that on 15th January 2014, the Council calculated the Council Tax Base 2014/15

(a)

for the whole Council area as:

128,144.18

(item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)); and

(b)

for dwellings in those parts of its area to which a Parish precept relates as in the attached Appendix 6c.

2.

Calculate that the Council Tax requirement for the Council’s own purposes for 2014/15 (excluding Parish precepts) is:

£

164,376,335

3.

That the following amounts be calculated for the year 2014/15 in accordance with Sections 31 to 36 of the Act:

(a)

£

1,442,968,022

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.

(b)

£

1,278,100,898

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c)

£

164,867,124

being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year (item R in the formula in Section 31B of the Act).

(d)

£

1,286.5752

being the amount at 3(c) above (Item R), all divided by item T (1(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish Precepts).

(e)

£

490,789

being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Appendix 6b).

(f)

£

1,282.7452

being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

4.

To note that the Police and Crime Commissioner for South Yorkshire and the South Yorkshire Fire and Rescue Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

5.

That the Council, in accordance with the Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in  the tables below as the amounts of Council Tax for 2014/15 for each part of its area and for each of the categories of dwellings.

Sheffield City Council (non-parish areas)

Valuation Band

A

B

C

D

E

F

G

H

Sheffield City Council

855.16

997.69

1,140.22

1,282.75

1,567.80

1,852.85

2,137.91

2,565.49

South Yorkshire Fire & Rescue Authority

43.36

50.59

57.81

65.04

79.49

93.95

108.40

130.08

South Yorkshire Police Authority

96.89

113.03

129.18

145.33

177.63

209.92

242.22

290.66

Aggregate of Council tax requirements

995.41

1,161.31

1,327.21

1,493.12

1,824.92

2,156.72

2,488.53

2,986.23

Bradfield Parish Council

Valuation Band

A

B

C

D

E

F

G

H

Sheffield City Council

855.16

997.69

1,140.22

1,282.75

1,567.80

1,852.85

2,137.91

2,565.49

Bradfield Parish Council

25.30

29.52

33.73

37.95

46.38

54.82

63.25

75.90

South Yorkshire Fire & Rescue Authority

43.36

50.59

57.81

65.04

79.49

93.95

108.40

130.08

South Yorkshire Police Authority

96.89

113.03

129.18

145.33

177.63

209.92

242.22

290.66

Aggregate of Council tax requirements

1,020.71

1,190.83

1,360.94

1,531.07

1,871.30

2,211.54

2,551.78

3,062.13

Ecclesfield Parish Council

Valuation Band

A

B

C

D

E

F

G

H

Sheffield City Council

855.16

997.69

1,140.22

1,282.75

1,567.80

1,852.85

2,137.91

2,565.49

Ecclesfield Parish Council

9.77

11.39

13.02

14.65

17.90

21.16

24.41

29.30

South Yorkshire Fire & Rescue Authority

43.36

50.59

57.81

65.04

79.49

93.95

108.40

130.08

South Yorkshire Police Authority

96.89

113.03

129.18

145.33

177.63

209.92

242.22

290.66

Aggregate of Council tax requirements

1,005.18

1,172.70

1,340.23

1,507.77

1,842.82

2,177.88

2,512.94

3,015.53

Stocksbridge Town Council

Valuation Band

A

B

C

D

E

F

G

H

Sheffield City Council

855.16

997.69

1,140.22

1,282.75

1,567.80

1,852.85

2,137.91

2,565.49

Stocksbridge Town Council

18.72

21.84

24.96

28.08

34.32

40.56

46.79

56.15

South Yorkshire Fire & Rescue Authority

43.36

50.59

57.81

65.04

79.49

93.95

108.40

130.08

South Yorkshire Police Authority

96.89

113.03

129.18

145.33

177.63

209.92

242.22

290.66

Aggregate of Council tax requirements

1,014.13

1,183.15

1,352.17

1,521.20

1,859.24

2,197.28

2,535.32

3,042.38

6.

The Council's basic amount of Council Tax is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992, therefore no referendum is required.

Appendix 6b

Council Tax Schedule 2014/15

Band A

Band B

Band C

Band D

Band E

Band F

Band G

Band H

Sheffield City Council

855.16

997.69

1,140.22

1,282.75

1,567.80

1,852.85

2,137.91

2,565.49

South Yorkshire Fire & Rescue Authority

43.36

50.59

57.81

65.04

79.49

93.95

108.40

130.08

South Yorkshire Police Authority

96.89

113.03

129.18

145.33

177.63

209.92

242.22

290.66

Total charge for non-parish areas of Sheffield

995.41

1,161.31

1,327.21

1,493.12

1,824.92

2,156.72

2,488.53

2,986.23

Bradfield Parish Council

1,020.71

1,190.83

1,360.94

1,531.07

1,871.30

2,211.54

2,551.78

3,062.13

Ecclesfield Parish Council

1,005.18

1,172.70

1,340.23

1,507.77

1,842.82

2,177.88

2,512.94

3,015.53

Stocksbridge Town Council

1,014.13

1,183.15

1,352.17

1,521.20

1,859.24

2,197.28

2,535.32

3,042.38

Appendix 6c

Parish Council Precepts

2013-14

2014-15

Council Tax Increase

Parish Council

Tax Base

Precepts (£)

Council Tax Band D (£)

Tax Base

Precepts (£)

Council Tax Band D (£)

Bradfield

6,023.58

224,112

37.2058

6,013.80

228,223

37.9499

2.00%

Ecclesfield

10,217.10

145,310

14.2222

10,182.80

149,167

14.6489

3.00%

Stocksbridge

4,063.11

108,131

26.6129

4,038.90

113,399

28.0768

5.50%

Total/average

20,303.79

477,553

23.5204

20,235.50

490,789

24.2539

3.12%

On being put to the vote the amendment was carried.

The votes on the amendment were ordered to be recorded and were as follows:-

For the amendment (56)

-

Councillors Julie Dore, Mike Drabble, Jack Scott, Roy Munn, Clive Skelton, Ian Saunders, Chris Rosling-Josephs, Helen Mirfin-Boukouris, Bryan Lodge, Denise Fox, Karen McGowan, Jayne Dunn, Stuart Wattam, Jackie Drayton, Ibrar Hussain, Talib Hussain, Mohammed Maroof, Geoff Smith, Mary Lea, Harry Harpham, Mazher Iqbal, Joyce Wright, Steven Wilson, Garry Weatherall, Sheila Constance, Chris Weldon, Alan Law, Steve Jones, Tim Rippon, Cate McDonald, George Lindars-Hammond, Robert Johnson, Janet Bragg, Pat Midgley, Jenny Armstrong, Terry Fox, Anthony Downing, David Barker, Isobel Bowler, Nikki Bond, Qurban Hussain, Martin Lawton, Sioned-Mair Richards, Peter Price, Tony Damms, Leigh Bramall, Gill Furniss, Richard Crowther, Philip Wood, Neale Gibson, Ben Curran, Adam Hurst, Alf Meade, Jackie Satur, Mick Rooney and Ray Satur.

Against the amendment (22)

-

Councillors Simon Clement-Jones, Shaffaq Mohammed, Jillian Creasy, Robert Murphy, Rob Frost, Sylvia Anginotti, Colin Ross, Joe Otten, Keith Hill, Penny Baker, Diana Stimely, Roger Davison, Sue Alston, Andrew Sangar, Cliff Woodcraft,Ian Auckland, Bob McCann, Anders Hanson, Katie Condliffe, David Baker, Alison Brelsford and Trevor Bagshaw.

Abstained on the amendment (1)

-

The Deputy Lord Mayor (Councillor Peter Rippon)

It was then moved by Councillor Andrew Sangar, seconded by Councillor Shaffaq Mohammed, as an amendment, that the recommendations of the Cabinet held on 19^th February, 2014, as relates to the City Council's Revenue Budget and Capital Programme 2014/15, be replaced by the following resolution:-

RESOLVED: That this Council:

(1)

notes that the previous Government increased the national deficit year-on-year from 2001 onwards, reaching a total of £43 billion prior to the economic crash, to the point where £1 in every £4 the Government spent was borrowed;

(2)

regrets that as a result of this reckless deficit, difficult decisions are required in all areas of public spending;

(3)

confirms that thanks to the difficult decisions the Government have taken the economy is growing, unemployment is reducing and the deficit is falling;

(4)

believes these moves to build a stronger economy could not have been achieved without Liberal Democrats in Government;

(5)

applauds that despite tough financial constraints Liberal Democrats in Government have been able secure policies that will help build a fairer society, including:

(i)

raising the income tax threshold to give 24 million ordinary workers a £700 tax cut;

(ii)

helping give every child the best start in life by introducing a £2.5 billion pupil premium, delivering 15 hours free childcare for disadvantaged two years olds and committing to free school meals for all infant pupils;

(iii)

supporting young people by creating more apprenticeships than ever before and improving vocational education through investment in University Technical Colleges; and

(iv)

tackling climate change and helping to create jobs by investing in renewable energy and home insulation;

(6)

in particular, highlights the following Government investments next year, which will help to build a stronger economy and a fairer society in Sheffield:

(i)

£8.7 million to help freeze Council Tax for a fourth consecutive year, saving families an average of £185 a year;

(ii)

£44.3 million for the third year of the Streets Ahead programme, which will see every road, pavement and streetlight in the City repaired;

(iii)

£5.4 million to provide Free Early Learning for disadvantaged two-year-olds, £25 million for Sheffield schools through the Pupil Premium and £5 million for Sheffield City Region to support young people into jobs;

(iv)

millions of pounds invested in Sheffield’s trams, trains and buses, alongside commitments to electrify the Midland Mainline and a new High Speed Rail station in Sheffield; and

(v)

ongoing support for the local economy through the Regional Growth Fund, enterprise zones, and the Sheffield City Deal;

(7)

believes Liberal Democrat action in Government has helped contribute to what the State of Sheffield 2013 Report described as a “look and feel of the city, and its quality of life [which] has never been stronger for many people”;

(8)

contrasts this summary with dangerous propaganda of local Labour politicians, who predicted a ‘post-soviet meltdown’ and riots in the streets of Sheffield;

(9)

finally, thanks the Government for the historic reform of business rates, which gives local councils greater control over the funding they raise locally;

(10)

yet regrets that instead of seizing this opportunity to secure extra funding for local services, this Administration continue to turn away jobs and investment and stand accused by business leaders of “closing its doors” to business;

(11)

adds this to the long-list of failings of the current Administration alongside secretive reviews, centralising decisions and mismanagement of Council budgets;

(12)

highlights that finance officers are currently estimating a £3 million deficit in this year’s budget outturn and contrasts this incompetence with the previous Administration who left a budget surplus of £6.2 million;

(13)

notes that while the Council faces a budget gap of £58 million this year, its funding from the Government has reduced by just £27 million and believes the remaining gap results from the hangovers of budget mismanagement and the priorities set out by this Administration;

(14)

believes that the Administration’s claims that Sheffield has been treated unfairly do not stand up to serious scrutiny and notes the following reductions in formula funding to illustrate this point:

(i)

Sheffield City Council – 9.7%

(ii)

Royal Borough of Kensington & Chelsea – 10.7%

(iii)

East Dorset – 12.6%

(iv)

Epsom & Ewell – 12.6%

(v)

St Albans – 12.7%

(vi)

West Oxfordshire – 13%

(15)

furthermore, condemns the missed opportunities overseen by the current Administration, which have forced the Council into what appear in practice irreversible positions, noting in particular;

(i)

that Government funds were on offer to help save weekly black bin collections, but to return the service now would cost local taxpayers £9.2 million;

(ii)

that the Council failed to bid into a £77 million fund to improve facilities for cyclists across Sheffield, missing out on a unique chance for funding;

(iii)

that local athletes offered to run the Don Valley Stadium at no cost to local taxpayers, but to rebuild the destroyed stadium would now cost roughly £48 million;

(iv)

that nevertheless this city remains saddled with the debt run up by previous administrations including £28 million next year to pay off the facilities built for the disastrous World Student Games; and

(v)

that the Administration have splashed out millions on high paid consultants, Council offices and political pet projects; funds which can never be regained for local taxpayers;

(16)

regrets that the current Administration refuse to accept responsibility for their own failures simply because they think they can get away with blaming someone else;

(17)

recommends that the Administration stop playing the blame game and investigate the following sensible savings in order to protect vital services;

(i)

reducing budgets for Trade Unions officials, which have been consistently protected to the detriment of front-line services;

(ii)

reducing posts in policy, research and performance, instead of front-line staff;

(iii)

eliminating costly pet projects – like Park Hill and Burngreave New Deal – and making better use of allocated reserves such as the Local Growth Fund;

(iv)

a small reduction in pay for the top 25% of earners in the Council, to produce a more equal structure and protect low-paid jobs such as care workers; and

(v)

requesting officers to bring forward proposals for shared services, setting modest financial targets in the first year;

(18)

confirms that by agreeing these savings, the Council could continue to provide the front-line services that local people care most about, such as;

(i)

ensuring that no library closes by restoring cuts proposed by the Administration;

(ii)

supporting business by reversing this Administration’s parking hikes and supporting vital city-centre events;

(iii)

increasing recycling by slashing the charge for green bins and increasing opening hours at local recycling centres;

(iv)

making best use of the Government’s New Homes Bonus to protect Sheffield’s Green Belt by investing in empty homes and supporting brownfield development;

(v)

keeping costs low for local families by reducing parking permit and allotment charges, alongside a freeze in Council Tax;

(vi)

investing in the services that matter most to local residents, including parks, early years, cleaner streets and facilities for young people; and

(vii)

giving local people a greater say in how money is spent in their area by handing more control to Local Action Partnerships;

(19)

therefore instructs the Executive Director, Resources to implement the City Council’s Revenue Budget and Capital Programme 2014/2015 in accordance with the details set out in the reports on the Revenue Budget and Capital Programme now submitted, but with the following amendments:-

Local Growth Fund (New Homes Bonus)

Savings

Investments

Use of uncommitted funds

1000

Tripling investment for bringing empty homes back into use

790

Reprioritise funds set aside for Darnall Shop Fronts

270

Investing in brownfield sites to bring them up to economically deliverable standard

500

Reprioritise funds  for the Green Links project in the Park Hill area

350

Increasing investment in local high streets through the Successful Centres programme

330

Total

1620

Total

1620

Fairness Commission

Savings

Investments

Reprioritising funds for equality hubs, discretionary fund and the Campaign for Fairness

170

Make a real difference to inequality by investing in modernising early years services and ensuring children get the best start in life

170

Total

170

Total

170

General Revenue Fund

Savings

Investments

Instigate a pay review with a proposed reduction of 2.5% for staff on a salary between £30k and £39k and 5% on a salary greater than £39k

1200

Ensure that no library is closed by reversing reductions in funding for the libraries service

900

Reduce the number of full-time trade union officials to one per union and charge for membership subscriptions

325

Lower the cost of green bins by a third by reducing the charge from £60 to £40

378

Remove plans for ‘independent’ libraries

262

Double discretionary funding for Local Action Partnerships and set a minimum level £10k per ward

300

Remove final council tax exemptions for empty homes

200

Make city-centre parking free after 18:30 and all-day on Sundays

300

Delete three senior manager posts

150

Reduce the charge for parking permits to their previous levels

112

End the ongoing subsidy of the Burngreave New Deal “white elephants”

100

Restore funding for parks maintenance

100

Reduce posts within the policy team

100

Create a targeted fund to ensure services for young people continued to be offered across the city

100

Set a modest savings target for shared services with other local authorities in Sheffield City Region

100

Reverse proposed deletion of routes from the Council’s gritting schedule

100

Reduce funding for City Centre Ambassadors

70

Investment to tackle fly-tipping and dog-fouling across communities

100

Delete allowances for Cabinet Advisors and reject a 1% pay rise for Councillors

53

Reverse cuts to the MADE Festival; Tramlines and Fright Night

95

Set a modest savings target for shared services between Sheffield trusts

50

Block proposed increases in allotments charges

80

Withdraw funding from the Sheffield First Partnership

32

 Increase opening hours at recycling centres by a total of three days

75

Implement savings from the Town Hall contract

18

Restore funding for Whirlow Hall Farm

20

Total

2660

Total

2660

Local Transport Plan

Savings

Investments

Delay the Park Hill parking permit zone by a year

100

Accelerate programme to tackle dangerous parking outside Sheffield schools

100

Reallocate decision making over £1.7 million of transport funding away from the Cabinet Member and to Local Action Partnerships

Cost-neutral

Total

100

Total

100

General Capital Fund

Savings

Investments

Reduce scope of the Howden House refurbishment by just 10%

70

Refurbish Cobnar Cottage in Graves Park

20

Contribution towards re-opening the pool at Stocksbridge Leisure Centre

50

Total

70

Total

70

(20)

accepts that a report will need to brought forward on a Council pay review and therefore notes that proposed investments in libraries, parking charges and recycling centres are dependent on this report or alternative savings;

(21)

approves those specific projects included in the 2013/14 to 2017/18 Capital Programme at Appendix 8 of the report on the Capital Programme 2014/15 to 2016/17, subject to the amendments outlined in paragraph 19 above, with block allocations being included within the Programme for noting at this stage and detailed proposals will be brought back for separate Member approval as part of the monthly monitoring procedures;

(22)

notes the proposed Capital Programme for the 5 years to 2017/18 as per Appendix 8 of the report on the Capital Programme, subject to the amendments outlined in paragraph 19 above;

(23)

approves the allocations from the Corporate Resource Pool and the policy outlined in Appendix 4 of the report on the Capital Programme such that the commitment from the CRP is limited to one year and no CRP supported schemes are approved beyond 2014-15, and if substantial capital receipts are realised within 2013-14 or 2014-15 a further report will be brought to Members as part of the monthly approval process;

(24)

after noting the joint report of the Chief Executive and the Executive Director, Resources now submitted on the Revenue Budget 2014/15, approves and adopts a net Revenue Budget for 2014/15 amounting to £451.248m, as set out in Appendix 3 of that report, and subsequently amended in the light of paragraph 19 above, as follows:-

Summary Revenue Budget

Original

Proposed

Budget

Budget

2013/14

2014/15

£000

£000

Portfolio budgets:

81,274

Children Young People and Families

70,712

160,883

Communities

157,364

101,960

Place

101,157

8,741

Policy Performance and Communications

2,205

57,985

Resources

54,810

410,843

386,248

Corporate Budgets:

Specific Grants

-1,642

         Council Tax Freeze Grant for 2013/14

0

0

         Council Tax Freeze Grant for 2014/15

-1,968

-9,683

         NHS Funding

-12,399

0

         Business Rates Transitional Grant

-1,079

-65,068

         PFI Grant

-71,116

-4,479

         New Homes Bonus (LGF)

-6,397

Corporate Items

9,000

         Redundancy Provision

11,200

1,000

         Pension Costs

9,750

1,229

         Digital Region

0

500

         Hardship Fund

500

-500

         Review of Management Costs

0

-450

         Improved debt collection

-250

6,642

         New Homes Bonus (LGF)

5,036

-3,400

         Public Health Savings

0

400

         Keep Sheffield Working Fund

0

3,000

         Contingency - Adults Social Care Pressures

3,716

24,344

         Schools and Howden PFI

24,747

0

         Enhancements

-1,300

0

         Infrastructure Investment in NRQ / St Pauls Place

400

82

         Payment to Parish Councils

82

1,000

         Fairness Commission

2,402

         Other

2,874

Pay Adjustments

-1,200

34,694

ITA Levy

31,384

38,237

Capital Financing costs

37,282

35,275

MSF capital financing costs

28,117

-6,000

Contribution from Reserves

5,621

477,426

Total Expenditure

451,248

Financing of Net Expenditure

-190,105

Revenue Support Grant

-157,460

-95,265

NNDR/Business Rates Income

-100,898

-27,800

Business Rates Top Up Grant

-28,342

-164,256

Council Tax income

-164,377

0

Collection Fund surplus

-171

-477,426

Total Financing

-451,248

(25)

approves a Band D equivalent Council Tax of £1,282.75 for City Council services, i.e. at the same level as 2013/14;

(26)

approves the Revenue Budget allocations and Budget Implementation Plans for each of the services, as set out in Appendix 2 of the Revenue Budget report, subject to the amendments outlined in paragraph 19 above;

(27)

notes the latest 2013/14 budget monitoring position;

(28)

approves the Treasury Management and Annual Investment Strategies set out in Appendix 7 of the Revenue Budget reportand the recommendations contained therein;

(29)

approves the Minimum Revenue Provision (MRP) Statement set out in Appendix 7 of the Revenue Budget report;

(30)

agrees that authority be delegated to the Director of Finance to undertake Treasury Management activity, to create and amend appropriate Treasury Management Practice Statements and to report on the operation of Treasury Management activity on the terms set out in these documents;

(31)

approves the proposed amount of compensation to Parish Councils for the loss of council tax income in 2014/15 at the levels shown in the table below paragraph 186 of the Revenue Budget report;

(32)

approves the proposed changes to empty property discounts in respect of Council Tax, as set out in the Revenue Budget report;

(33)

agrees that the Members' Allowances Scheme for 2013/14 and onwards, approved by the Council on 15th May, 2013, be also implemented for 2014/15, but no annual increase be implemented during 2014/15 in relation to Basic, Special Responsibility (including the Pensions Authority), Co-optees and Dependent Carers’ Allowances;

(34)

approves a Pay Policy for 2014/15 as set out in Appendix 8 of the Revenue Budget report;

(35)

notes that, based on the estimated expenditure level of £451.248m set out in paragraph 24 above, the amounts shown in part B below would be calculated by the City Council for the year 2014/15, in accordance with Sections 32 to 36 of the Local Government Finance Act 1992;

(36)

notes the precepts issued by local parish councils which add £490,789 to the calculation of the budget requirement in accordance with Sections 31 to 36 of the Local Government Finance Act 1992;

(37)

notes the information on the precepts issued by the South Yorkshire Police and Crime Commissioner and the South Yorkshire Fire and Civil Defence Authority, together with the impact of these on the overall amount of Council Tax to be charged in the City Council’s area;

Appendix 6a