1. The framework for decisions
The Council will be responsible for the adoption of its budget and policy framework as set out in Article 4.
The policy framework means the following plans and strategies:
- Community Safety Plan
- The plans and strategies which together comprise the Local Plan
- Local Council Tax Support Scheme
- Medium Term Financial Strategy
- Licensing Policy and Statement of Licensing Principles (Gambling Act)
- Annual Library Plan (if required)
- Youth Justice Plan
- Local Transport Plan
Once the Authority’s Annual Budget or a Plan or Strategy included in the policy framework has been agreed by Full Council, it will be the responsibility of the Finance and Corporate Affairs Committee or other relevant Policy Committee to secure and monitor implementation.
2. Process for agreeing the annual budget
This process will be completed within the time scale set by the Finance and Corporate Affairs Committee and will include the following steps:
- (a) The Finance and Corporate Affairs Committee will draw up a budget timetable
To reflect the timing of Government Funding Announcements and the statutory requirements for determining the Annual Budget and Council Tax level.
- (b) Finance and Corporate Affairs Committee develops proposals for the Annual Budget
The Finance and Corporate Affairs Committee will consult stakeholders in the manner appropriate for the matter under consideration and will then draw up initial proposals for the Annual Budget.
- (c) Individual Policy Committees develop detailed budget proposals
Individual Policy Committees will consider and prepare detailed budget proposals within the parameters set or defined by the Finance and Corporate Affairs Committee.
- (d) Finance and Corporate Affairs Committee finalises proposals for submission to Full Council
The Finance and Corporate Affairs Committee will finalise the proposals for the Annual Budget for the Full Council to consider.
- (e) Initial Full Council Meeting
Full Council will consider the Finance and Corporate Affairs Committee’s proposals for the Annual budget and proposed level of Council Tax and may approve them on the basis of a simple majority of Elected Members present and voting.
The proposed Annual Budget (and Council Tax level) becomes effective immediately and the Council’s decision.
If the Annual Budget (and Council Tax level) proposed is not approved by Full Council it is referred back to the Finance and Corporate Affairs Committee
Full Council must identify the issue(s) that it wishes the Finance and Corporate Affairs Committee to reconsider and the reasons for seeking such reconsideration..
- (f) Further Meeting of the Finance and Corporate Affairs Committee
A further meeting of Finance and Corporate Affairs Committee to consider the referral from Full Council will take place. The Committee will consider and respond to the referral from Full Council.
- (g) Final Meeting of the Council
The final meeting of Full Council will take place no later than 11 March in any year to enable the Authority’s Council Tax Requirement to be determined by the requisite statutory deadlines.
An example of the process followed for setting the budget is set out at Figure 1.
3. Process for developing all Plans and Strategies within the Policy Framework
This process will be followed for all Plans and Strategies included within the Policy Framework for each Policy Committee.
- (a) Outline proposal developed
Officers will report to the relevant Policy Committee outlining the need and process for the development of the Plan or Strategy including key dates for decisions.
- (b) Drafting of Plan or Strategy and consideration of initial draft policy by Policy Committee
Officers will consult the relevant stakeholders in a manner appropriate for the Plan or Strategy being developed and will then prepare the initial draft. The initial draft will be presented to the relevant Policy Committee for discussion and approval as a draft for consultation.
- (c) Consultation on initial draft of Plan or Strategy
Officers will undertake consultation on the initial draft Plan or Strategy for a minimum of 8 weeks. The Community Safety Plan is subject to statutory scrutiny and will be considered by the Audit and Governance Committee at this stage. The Audit and Governance Committee will have at least 6 weeks to consider the draft policy following referral from the Policy Committee.
- (d) Revised drafting of Plan or Strategy and consideration by Policy Committee
Officers consider the consultation responses received and, if appropriate, produce a revised Plan or Strategy. Any revised draft will be presented to the Policy Committee for agreement for further consultation, if necessary. The Committee will be provided with information on the consultation responses, comments on those responses and proposed changes to the initial draft Plan or Strategy. If no further changes requiring consultation are proposed the Plan or Strategy may be approved as the final draft and be submitted to Full Council in accordance with part (f) below.
- (e) Consultation on revised draft of Plan or Strategy
Officers will undertake appropriate consultation on any revised draft of the Plan or Strategy as agreed by the Policy Committee. The Community Safety Plan is subject to statutory scrutiny and will be considered by the Audit and Governance Committee again at this stage.
- (f) Drafting and debating the final draft Plan or Strategy
Officers will consider any further consultation responses received and produce a final draft of the Plan or Strategy. The final draft of the Community Safety Plan is subject to statutory scrutiny and will be considered by the Audit and Governance Committee again at this stage.
The final draft of the Plan or Strategy will be presented to the relevant Policy Committee for approval. A response to the comments made through the consultation on the final draft including the response from Audit and Governance Committee where appropriate, will be included in the report to the Committee.
Once approved by the Policy Committee the final draft of the Plan or Strategy will be presented to Full Council for approval. Full Council will consider the final draft and either adopt it, amend it or refer it back to the Policy Committee for further consideration.
- (g) If the policy is adopted unamended by Full Council
Full Council will consider the final draft Plan or Strategy and may adopt the Plan or Strategy on the basis of a simple majority of those Elected Members present and voting.
If the final draft Policy or Strategy is not approved by Full Council it is referred back to the relevant Policy Committee. Full Council must identify the issue(s) that it wishes the Policy Committee to reconsider and the reasons for seeking such reconsideration.
- (h) Further Meeting of the Policy Committee
A further meeting of the Policy Committee to consider the referral from Full Council will take place. The Policy Committee will consider and respond to the referral from Full Council.
- (i) Meeting of Full Council
A further meeting of Full Council will be convened to consider the response of the Policy Committee to the referral from Full Council. Full Council may adopt the final draft Plan or Strategy on the basis of a simple majority of those Elected Members present and voting.
Alternatively, Full Council may approve the Plan or Strategy subject to any amendments agreed by Full council on the basis of a simple majority of those Elected Members present and voting, providing that no objection to amendments agreed at Full Council is submitted, in writing, including the full reasons for the objection, by the Chair (or in their absence the Vice Chair(s)) of the relevant Policy Committee, to the Proper Officer (an Objection). An Objection must be submitted within five clear working days of the meeting of Full Council (the Objection Period). In the absence of an Objection, the Plan or Strategy as amended will be adopted by the Authority at the expiry of the Objection Period.
- (i) Final Meeting of Full Council
Where a valid objection is received the Proper Officer will call a meeting of Full Council within 10 clear working days of the Chair’s objection. At that meeting Full Council will reconsider the issue in light of the Objection received and determine whether to confirm adoption of the Plan or Strategy as amended by Full Council or to agree and adopt the final draft Plan or Strategy agreed by the Policy Committee. The relevant Plan or Strategy will be adopted, on the basis of a simple majority of Elected Members present and voting).
4. Decisions outside the Budget or Policy Framework
i) Subject to the provisions of section 6 (Flexibilities), Committees or Officers exercising delegated powers, may only take decisions which are in accordance with the approved Budget and/or the Plans and Strategies contained within the Policy Framework. If any Committee or Officer acting under delegated powers wishes to make a decision which is not in accordance with the approved Budget and/or the Plans and Strategies contained within the Policy framework and which not permitted in accordance with the provisions of Section 6 (Flexibilities) then that decision may only be taken by Full Council. This prohibition is, however, subject to section 5 (Urgent Decisions outside the Budget or Policy Framework) below.
ii) If a Committee or an Officer exercising delegated powers is unclear as to the status of a proposed decision, they must take advice from the Monitoring Officer and the Director of Finance, IT and Digital as to whether the decision they want to make would not be in accordance with the approved Budget and/or the Plans and Strategies contained within the Policy Framework. If the advice of either of these Officers is that the decision would not be in accordance with the Budget and/or Policy Framework, then the Committee or Officer must amend the decision, in consultation with the Director of Finance, IT and Digital and the Monitoring Officer to comply with the budget or framework. The decision can also be referred to Full Council to agree the decision on an exceptional basis. If the decision is a matter of urgency, the provisions in section 5 (Urgent Decisions outside the Budget and Policy Framework) shall apply.
5. Urgent decisions outside the Budget and/or Policy Framework
i) The Chief Executive, in consultation with the Chair of Finance and Corporate Affairs Committee, the Director of Finance, IT and Digital and the Monitoring Officer may take a decision which is contrary to the Policy Framework or contrary to or not wholly in accordance with the Budget approved by Full Council, if the decision is a matter of urgency. However, the decision may only be taken:
- if it is not practical to convene a quorate meeting of the Full Council; and
- if the Ceremonial Mayor acting as Chair of the Council in consultation with the Monitoring Officer and/or Director of Finance, IT and Digital agrees that the decision is a matter of urgency. In the absence of the Chair of the Council the approval of the Vice-Chair of Council, will be sufficient.
ii) The reason why it is not practical to convene a quorate meeting of Full Council and the Chair of Council’s consent to the decision being taken as a matter of urgency, must be provided on the record of the decision.
iii) Following the decision, the decision taker will provide a full report to the next Ordinary meeting of Full Council including an explanation of the decision, the reasons for taking the decision and the reason(s) for urgency.
6. Flexibilities
The Financial Procedure Rules in Part 4 give details of flexibilities available in implementing the Budget and applying financial framework. Key aspects are set out below:
- i) The Authority shall have the budget heads as set out in the annual budget book.
7. Virement
i) Steps taken by Committees and Officers with delegated powers to implement Authority’s policies as contained within the Plans and Strategies in the Policy Framework and otherwise shall not exceed those budgets allocated to each budget head. However, such Committees and Officers are entitled to transfer resources through virement across budget heads on the following basis:
- Revenue budget – The Chief Executive and Directors may approve virement of revenue budget up to £100,000 (cumulatively up to £200,000 over the financial year) and proposed virement of any resources in excess of that limit will require the approval of Full Council.
- No virement of revenue budget transfer between ‘Directorates’ is permitted without approval of the Finance and Corporate Affairs Committee.
- Capital budget - The Chief Executive and Directors may approve virement of capital budget up to £100,000 (cumulatively up to £200,000 over the financial year) per scheme and proposed virement of any resources in excess of that limit will require the approval of Full Council. Any virement that has an increased borrowing implication will require the approval of Full Council. No virement of capital budget transfer between ‘Directorates’ is permitted without approval of the Finance and Corporate Affairs Committee.”
- Virement in accordance with the Closure Strategy may be undertaken by the Director of Finance, IT and Digital as required.
8. Resources
- i) Resources may be transferred into/out of specific reserves.
- ii) Any Government grants or other financial support received, whether or not referenced or included within the Budget, will be allocated in accordance with any conditions applied by Government to the resource received and the Authority’s relevant Plans or Strategies included in the Policy Framework.
9. In term changes to the Budget and Policy Framework
The responsibility for agreeing the Budget and the Plans and Strategies contained within the Policy Framework lies with Full Council and decisions by Committees or Officers exercising delegated powers must be in accordance with it.
No changes to any Plan or Strategy in the Policy Framework may be made by those Committees or Officers acting under delegated powers during the term of the Plan or Strategy except those changes necessary to ensure compliance with the Law, Ministerial direction or Government guidance or to the extent permitted in accordance with any other specific delegation by Full Council to that Committee or Officer in respect of a specified Plan or Strategy.