The Council agreed to have one debate in respect of the Motion, ‘Budget Overspend’ and objection to Cabinet minute 26, ‘Financial Out-Turn 2010/11’, with two separate votes at its conclusion.

Motion – Budget Overspend

Proposed by Councillor Steve Foulkes

Seconded by Councillor Phil Davies

(1)  Council expresses its dismay at the £5.3m overspend on last year’s budget in Adult Social Services, Children’s Services and Technical Services, as reported to the meeting of Cabinet on the 23rd June.

(2)  In view of the massive cut in Council funding approved by the previous administration and given that the pressures creating the overspends were well known, Council believes that corrective action should have been taken at an earlier stage in order to avoid placing more pressure on the current year’s budget.

(3)  Council notes that these overspends have been covered by one-off savings from Treasury Management and Housing Benefit, however, as resources get scarcer such one-off sums cannot be relied upon to bail out over-spending areas.

(4)  Council therefore takes this opportunity to remind Chief Officers that they have a Constitutional responsibility: “to ensure that spending remains within the services overall cash limit and that individual budget heads are not overspent, by monitoring the budget and taking appropriate corrective action where significant variations from the approved budget are forecast.”

Amendment submitted in accordance with Standing Order 7(2):

Proposed by Councillor Tom Anderson

Seconded by Councillor Simon Mountney

Delete all and insert:

Council notes:

(1)  The £5.3 million overspend on last year’s budget in Adult Social Services, Children’s Services and Technical Services as reported to the meeting of Cabinet on the 23rd June 2011 and that this overspend has been offset by the previous Conservative - Liberal Democrat administration’s careful stewardship of its Treasury Management function and Housing Benefit reserve.

(2)  That the previous Coalition administration’s budget for 2011/12 has reduced spending by £52 million, delivered a 0% council tax increase, left Council balances of £14 million and reduced debt by £10 million.

(3)  Council thanks staff and the senior management team for their work during 2010/11 to bear down on expenditure while seeking to maintain spending at levels proposed in the Labour-led Council’s budget for 2010/11 which given the report to Cabinet on the 23rd June 2011, has now been shown to be inadequate.

Amendment submitted in accordance with Standing Order 7(2):

Proposed by Councillor Tom Harney

Seconded by Councillor Phil Gilchrist

Amend paragraph (1) to read:

(1)  Council notes the £5.3m overspend on last year’s budget in Adult Social Services, Children’s Services and Technical Services, as reported to the meeting of Cabinet on the 23rd June.

Delete existing paragraphs (2) and (3) and insert new paragraph (2):

(2)  Council recognises the achievement that the deficit in Adult Social Services has been halved under the previous coalition administration after inheriting the worst Adult Social Services department in the country at a time of severe financial pressures and whilst substantial and transformational change has been initiated.

Renumber existing paragraph (4) as paragraph (3) and delete “therefore”:

(3)  Council takes this opportunity to remind Chief Officers that they have a Constitutional responsibility: “to ensure that spending remains within the services overall cash limit and that individual budget heads are not overspent, by monitoring the budget and taking appropriate corrective action where significant variations from the approved budget are forecast.”

Insert new paragraph (4):

(4)  Council therefore asks that Chief Officers continue to be open, honest and pro-active with all elected members, through financial monitoring reports and other reports to the Cabinet, Audit and Risk management Committee and relevant scrutiny committees about projected and potential overspends and the necessary corrective actions.

Objection – Minute 26 (Cabinet – 23 June, 2011) Financial Out-Turn 2010/11

Moved by Councillor Tom Harney

Seconded by Councillor Phil Gilchrist

Delete resolution and insert: That

(1)  the revenue out-turn for 2010/11 be agreed;

(2)  the provisions and reserves be agreed;

(3)  it be noted as an achievement that the deficit in Adult Social Services has been halved under the previous coalition administration after inheriting the worst Adult Social Services department in the country at a time of severe financial pressures and whilst  substantial and transformational change has been initiated;

(4)  that Chief Officers are asked to continue to be open, honest and pro-active with all elected members, through financial monitoring reports and other reports to the Cabinet, Audit and Risk management Committee and relevant scrutiny committees about projected and potential overspends and the necessary corrective actions.

Following a debate and Councillor Foulkes having replied, the motion was put to the vote. Councillors Anderson and Harney agreed that their amendments be combined and the composite amendment was put and carried (36:28) (One abstention)

The substantive motion was then put and carried (36:28) (One abstention)

Resolved (36:28) (One abstention) -

Council notes:

(1)  The £5.3 million overspend on last year’s budget in Adult Social Services, Children’s Services and Technical Services as reported to the meeting of Cabinet on the 23rd June 2011 and that this overspend has been offset by the previous Conservative - Liberal Democrat administration’s careful stewardship of its Treasury Management function and Housing Benefit reserve.

(2)  That the previous Coalition administration’s budget for 2011/12 has reduced spending by £52 million, delivered a 0% council tax increase, left Council balances of £14 million and reduced debt by £10 million.

(3)  Council thanks staff and the senior management team for their work during 2010/11 to bear down on expenditure while seeking to maintain spending at levels proposed in the Labour-led Council’s budget for 2010/11 which given the report to Cabinet on the 23rd June 2011, has now been shown to be inadequate.

(4)  Council recognises the achievement that the deficit in Adult Social Services has been halved under the previous coalition administration after inheriting the worst Adult Social Services department in the country at a time of severe financial pressures and whilst substantial and transformational change has been initiated.

(5)  Council takes this opportunity to remind Chief Officers that they have a Constitutional responsibility: “to ensure that spending remains within the services overall cash limit and that individual budget heads are not overspent, by monitoring the budget and taking appropriate corrective action where significant variations from the approved budget are forecast.”

(6)  Council therefore asks that Chief Officers continue to be open, honest and pro-active with all elected members, through financial monitoring reports and other reports to the Cabinet, Audit and Risk Management Committee and relevant scrutiny committees about projected and potential overspends and the necessary corrective actions.

The objection to Cabinet minute 26, ‘Financial Out-Turn 2010/11’, was then put to the vote and it was –

Resolved (36:28) (One abstention) –

That,

(1)  the revenue out-turn for 2010/11 be agreed;

(2)  the provisions and reserves be agreed;

(3)  it be noted as an achievement that the deficit in Adult Social Services has been halved under the previous coalition administration after inheriting the worst Adult Social Services department in the country at a time of severe financial pressures and whilst  substantial and transformational change has been initiated;

(4)  Chief Officers are asked to continue to be open, honest and pro-active with all elected members, through financial monitoring reports and other reports to the Cabinet, Audit and Risk Management Committee and relevant scrutiny committees about projected and potential overspends and the necessary corrective actions.