Decision Maker: Council, Cabinet
Is Key decision?: Yes
Is subject to call in?: No
To consider options presented by the Strategic
Budget Review and Transformation Programme
The Council considered the report of the Chief Executive which provided details of the proposed response to Minute 8 of the Extraordinary Council Meeting held on 24 June 2010, the impact of the recent announcement by the Government for a reduction of grants to Local Authorities and proposals for the management of the budget reductions for the Council.
The Cabinet had considered the report at its meeting held earlier that day (Minute No. 65 refers) and a revised Appendix A to the report was circulated to Members, together with the confidential Appendix B (see Minute No. 25 below).
The Chief Executive also circulated on addendum to the report on the equality impact assessment of the proposals to reduce/cease some activity funded through Area Based Grant.
This was a Key Decision and was included in the Council’s Forward Plan of Key Decisions.
It was then moved by Councillor Robertson and seconded by Councillor Brodie-Browne that:
(1) approval be given to the cessation of the specific Area Based Grant projects and activities totalling £2,549,850 in 2010/11 as identified in Appendix A and the confidential Appendix B of the report (see Minute No. 25 below);
(2) it be noted that this will involve a reduction in staff, to be achieved through the Council’s normal personnel procedures and if necessary through compulsory redundancies;
(3) the finalisation of these arrangements be delegated to the Chief Executive in consultation with Party Leaders;
(4) the response to the resolution of the Extraordinary Council Meeting on 24 June 2010 as set out in paragraph 5 of the report be noted;
(5) approval be given to the use of £1.5m one-off funding previously allocated to support the 2009/10 outturn position to compensate for the reduction in grant;
(6) approval be given to the use of the 2010/11 contribution to balances of £500k towards the required savings;
(7) approval be given to the re-phasing of £720k of the transport capital programme;
(8) approval be given to the reallocation of 2009/10 reserve contributions outlined in Appendix 3 of the report and totalling £745k;
(9) the ongoing work outlined in paragraph 3.9 of the report to identify the balance of savings required be endorsed and a report be submitted to the next Cabinet meeting.
It was moved by Councillor P. Dowd, seconded by Councillor Maher that the motion be amended by the addition of the following text:
“The Council notes:
that the increase in VAT from 17.5% to 20% announced in the Government's June Emergency Budget will fall hardest on those least able to afford it;
that the increase in VAT will lead to higher prices for goods and services; will have a disproportionate impact on pensioners and other low income groups; and will have a severe impact on businesses, charities and community groups in Sefton;
that the effect of the increase in VAT, when taken with other measures in the Budget, will be unfair to pensioners, who have not had a compensatory increase in other benefits and allowances;
that the way the VAT increase will affect pensioners and other low income groups runs counter to the Government's Coalition Agreement statement on 20 May 2010 that it would "ensure that fairness is at the heart of those decisions so that all those most in need are protected"; and
that the Institute of Fiscal Studies has stated the VAT increase was not "unavoidable", as the Chancellor of the Exchequer said in his Budget speech.
The Council resolves:
To write directly to the Chancellor of the Exchequer raising concerns about the impact of the proposed VAT increase on pensioners, other vulnerable groups and businesses in Sefton.
To call on the Members of Parliament representing the Metropolitan Borough of Sefton to stand up for Sefton's pensioners, businesses and wider community, to voice their opposition to this unfair increase in VAT and to vote against it in Parliament.”
The requisite number of Members having signified their wish that the voting on the amendment should be recorded in accordance with Rule 18.4 of the Council and Committee Procedure Rules, the voting was duly recorded and the Members of the Council present at the time, voted as follows:-
FOR THE AMENDMENT:
Councillors Bradshaw, Brady, Brennan, Byrom, Carr, K. Cluskey, L. Cluskey, Cummins, M. Dowd, P. Dowd, Fairclough, Gustafson, Hardy, Kelly, Kerrigan, Maher, McGinnity, Moncur, Tweed, Veidman and Webster.
AGAINST THE AMENDMENT:
Councillors Barber, Blackburn, Booth, Brodie-Browne, Byrne, Cuthbertson, Dodd, Doran, Dorgan, Dutton, Lord Fearn, Gibson, Glover, Griffiths, Hands, Hill, Hough, Howe, Ibbs, Jones, C. Mainey, S. Mainey, McIvor, Papworth, Parry, Pearson, Preece, Preston, D. Rimmer, Robertson, Shaw, Tattersall, Sir Ron Watson and Weavers.
ABSTENTION:
Councillor M. Fearn.
The amendment was lost by 34 votes to 21 with one abstention.
A further amendment was moved by Councillor P. Dowd, seconded by Councillor Maher that resolution (1) of the Motion be amended by the addition of the following text:
"excluding the staffing implications set out in the confidential Appendix B".
The requisite number of Members having signified their wish that the voting on the amendment should be recorded in accordance with Rule 18.4 of the Council and Committee Procedure Rules, the voting was duly recorded and the Members of the Council present at the time, voted as follows:-
FOR THE AMENDMENT:
Councillors Bradshaw, Brady, Brennan, Byrom, Carr, K. Cluskey, L. Cluskey, Cummins, M. Dowd, P. Dowd, Fairclough, Gustafson, Hardy, Kelly, Kerrigan, Maher, McGinnity, Moncur, Tweed, Veidman and Webster.
AGAINST THE AMENDMENT:
Councillors Barber, Blackburn, Booth, Brodie-Browne, Byrne, Cuthbertson, Doran, Dorgan, Dutton, Lord Fearn, Gibson, Glover, Griffiths, Hands, Hill, Hough, Howe, Ibbs, Jones, C. Mainey, S. Mainey, McIvor, Papworth, Parry, Pearson, Preece, Preston, D. Rimmer, Robertson, Shaw, Tattersall, Sir Ron Watson and Weavers.
ABSTENTION:
Councillor M. Fearn.
The amendment was lost by 33 votes to 21 with one abstention.
Following further debate, the requisite number of Members having signified their wish that the voting on the Substantive Motion should be recorded in accordance with Rule 18.4 of the Council and Committee Procedure Rules, the voting was duly recorded and the Members of the Council present at the time, voted as follows:
FOR THE SUBSTANTIVE MOTION:
Councillors Barber, Blackburn, Booth, Brodie-Browne, Byrne, Cuthbertson, Doran, Dorgan, Dutton, Lord Fearn, Gibson, Glover, Griffiths, Hands, Hill, Hough, Howe, Ibbs, Jones, C. Mainey, S. Mainey, McIvor, Papworth, Parry, Pearson, Preece, Preston, D. Rimmer, Robertson, Shaw, Tattersall, Sir Ron Watson and Weavers.
AGAINST THE SUBSTANTIVE MOTION:
Councillors Bradshaw, Brady, Brennan, Byrom, Carr, K. Cluskey, L. Cluskey, Cummins, M. Dowd, P. Dowd, Fairclough, Gustafson, Hardy, Kelly, Kerrigan, Maher, McGinnity, Moncur, Tweed, Veidman and Webster.
ABSTENTION:
Councillor M. Fearn.
The Substantive Motion was carried by 33 votes to 21 with one abstention and it was
RESOLVED: That
(1) approval be given to the cessation of the specific Area Based Grant projects and activities totalling £2,549,850 in 2010/11 as identified in Appendix A and the confidential Appendix B of the report (see Minute No. 25 below);
(2) it be noted that this will involve a reduction in staff, to be achieved through the Council's normal personnel procedures and if necessary through compulsory redundancies;
(3) the finalisation of these arrangements be delegated to the Chief Executive in consultation with Party Leaders;
(4) the response to the resolution of the Extraordinary Council Meeting on 24 June 2010 as set out in paragraph 5 of the report be noted;
(5) approval be given to the use of £1.5m one-off funding previously allocated to support the 2009/10 outturn position to compensate for the reduction in grant;
(6) approval be given to the use of the 2010/11 contribution to balances of £500k towards the required savings;
(7) approval be given to the re-phasing of £720k of the transport capital programme;
(8) approval be given to the reallocation of 2009./10 reserve contributions outlined in Appendix 3 of the report and totalling £745k; and
(9) the ongoing work outlined in paragraph 3.9 of the report to identify the balance of savings required be endorsed and a report be submitted to the next Cabinet meeting.
Publication date: 16/07/2010
Date of decision: 08/07/2010
Decided at meeting: 08/07/2010 - Council
Accompanying Documents: