BUDGET DAY

Budget Day - in Edinburgh anyhow! - and some slight tweaks to our earlier Amendment ...

... essential nature still exactly as was, when we published a week ago.

Still no sign of any SNP/Lib-Dem Administration Motion, and there's only a few hours until the budget-setting meeting starts?

Open, transparent and inclusive? - I'm afraid not; old politics reigns yet :-(

... but hopefully for only another 84-days.

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The City of Edinburgh Council

9^th February 2012

REVENUE BUDGET 2012- 2013

CAPITAL INVESTMENT PROGRAMME 2012- 2016

HOUSING REVENUE ACCOUNT AND CAPITAL PROGRAMME 2012- 2013

LABOUR GROUP AMENDMENT

 

1. AVAILABLE RESOURCES

Council agrees that the protection of front line services remains an important priority, and acknowledges that every effort should be made to rationalise back-office functions.

Council further agrees that economic regeneration is vital to ensuring Edinburgh’s prosperity and future prospects; and recognises the Council’s duty to lead on both issues.

Therefore Council notes:

• The current budget position as contained within today’s report/s.

• The imbalance in revenue resources over the next 3 years due to the allocation of funding from the Scottish Government.

• That future years will be extremely challenging based on current allocations / forecasts.

2. SERVICE PRIORITIES

Council now agrees:

• That the introduction of the Living Wage of £7.20 per hour for Council workers is necessary to ensure social and economic justice and will also support the local economy.

• To plan for the payment of the Living Wage to be a condition of future contracts with external suppliers.

• That in future the highest paid Council employee shall earn no more than 12 times the salary of the lowest paid Council worker.

• To establish a “PSC / Service Improvement Fund (Spend to Save)” of £11million to develop Council services and achieve efficiency savings; whilst noting that some £4.25million of abortive expenditure, plus extensive internal costs, has been sunk on the abandoned privatisation alternative.

• To establish a “Co-operative Development Unit” (CDU) with an initial fund of £250,000. This unit will be resourced by the redeployment of senior staff from elements of service restructuring; noting that this restructuring has been called for in the previous 4 Labour Group Budget Amendments.

• The CDU will work with Council departments, communities and partner organisations to develop sustainable co-operative models which will deliver excellent public services in a cost effective and cooperative manner. (i.e. childcare, renewable energy production, housing)

• That £3.4million funding in 2012/13 will go towards the ‘Change Funds for Health and Social Care and Early Years’, to support the wider alignment of budgets on a preventative basis, with provision of £6.8million by 2014/15.

• To allocate an additional £1.534m towards various Health and Social Care initiatives.

• To reinstate £826,000 of Voluntary Sector funding to ensure that all Voluntary Sector Grants are maintained at current levels, throughout 2012/13.

• Funding of £740,000 to Edinburgh Leisure for specified works and services.

• To reinstate £550,000 to the Libraries Service, which would secure existing Sunday opening hours.

• To allocate £2.5million towards Employability Services in the city, ensuring that every school-leaver has a positive employment/education destination, and agrees to review the effectiveness and deliverability of these services in view of their importance to jobs and economic success.

• To call for an urgent report, within 2-cycles, on all potential solutions to provide long-term stability for the funding of these Employability Services/Programmes.

• That, recognising the need for ongoing schools maintenance, an additional ‘School Fabric Repairs’ fund of £4.326million is established.

• The allocation of £700k towards energy and carbon reduction measures

• That an additional investment fund of £3million is allocated to Neighbourhood Partnerships (more than trebling their existing discretionary spend) and those local communities are thus fully consulted on the best use of these one-off resources for infrastructure or community improvements, and also local co-operative developments, such as:

1. roads and footways improvements (Right First Time [RFT])
2. expansion of ‘Real Time Information’ for local bus services
3. cycling infrastructure improvements
4. local Play facilities
5. local Sports Pavilions
6. local Community Centre facilities

3. PROPOSED SAVINGS

Council further agrees to the following areas of significant saving:

a.    Restructuring of Senior Management (Heads of Service) Posts

b.    Reduction in the Q.I.O. Teams

c.    Removal of various Council Publications

d.    Absenteeism management

4. CONTINUED INVESTMENT

Council notes this budget allows the following areas of continued investment:

a.    Nursery, Primary, Secondary and Special Schools

b.    Health and Social Care Services for the Old and Vulnerable

c.    Voluntary Sector, and third-party, grant support

d.    Sport and Physical Activity services

e.    Neighbourhood Services and local infrastructure

f.     Libraries

5. FUTURE BUDGET DEVELOPMENT

Council notes that the budget process is an internal exercise which culminates in the setting of the Council's budget in mid-February each year. Spending plans are set for at least 12 months and sometimes up to 3 years.

Council agrees to establish a new Council Budget Committee to improve the scrutiny, and effectiveness, of the budget process. The proposed committee would be made up of Councillors and external groups representing wider civic society in the city. Such a dedicated budget committee could radically improve scrutiny and transparency of the budget setting process.

6. POLITICAL CHOICE

Council thus agrees to develop the concept of a ‘Co-operative Council’, positively promoting local decision-making, and rejecting the now, failed privatisation alternative.

Council thus acknowledges that this budget has focused on proposed areas of targeted savings to enable both continued investment in essential front line public service priorities, and the achievement of longer-term sustainable savings.

7. ADDITIONAL APPROVALS

Council notes the following:

1. Report no. CEC/86/11-12/PS and CEC/87/11-12/PS by the Director of Corporate Governance, setting out the overall resources available for revenue expenditure.
2. Report nos. CEC/92/11-12/CG and CEC/89/11-12/CG by the Director of Corporate Governance setting out the proposals for funding services from third parties in 2012/13.
3. Report no. CEC/88/11-12/PS and CEC/90/11-12/CG by the Director of Corporate Governance setting out the overall position on capital resources for the period 2012 - 2016.
4. That the latest Audit Scotland annual report stated, in regard to Equal Pay provision, that 'the Council has been overly prudent in estimating the level of provision required at 31 March 2011'.
5. A further report will be submitted to seek approval of revised charges for Council services, the outcomes of which are contained in Annex 1 to this amendment.

Council approves the following:

1. The revenue budget set out in the reports, subject to the adjustments set out in Annex 1 to this amendment.
2. A review of all Council Reserves with any un-required funds being allocated towards Statutory Repairs.
3. The grant recommendations set out in report CEC/89/11-12/CG together with additional investment set out in Annex 1.
4. The 2012 - 2016 capital budget as set out in reports CEC/88/11-12/PS and CEC/90/11-12/CG by the Director of Corporate Governance.
5. The Council Tax and Rating Resolutions as set out in Annex 2 to this amendment.
6. The recommendations contained in report CEC/91/11-12/SfC by the Director of Services for Communities to increase rents by 7.9% in line with the agreed rent strategy in the HRA approved business plan.

            Signature of Proposer ……………………………………………………

            Signature of Seconder ……………………………………………………

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