Below is an explanation of the Budget Process that Tower Hamlets Council will undertake to finalise the Budget (Level of Council Tax and Spending). Part 1, discusses Councils Powers and the Role of the Mayor, Cabinet and Overview and Scrutiny with regards to the budget.
Councils (Elected Members in Full Council) Powers to Set and Amend Budget
The budget making process is governed by statute. The Local Government Act 2000 (section 9D) and the Functions and Responsibilities Regulations 2000 establish a division of functions between the Council and the Mayor. The Mayor is responsible for preparing and proposing to the Council a draft budget; and the Council is responsible for agreeing the final budget.
In the event of disagreement – i.e. if the Council wishes to amend the Mayor’s proposals – a statutory dispute resolution process is set out in the Local Authorities (Standing Orders) Regulations 2001. This requires the Council to meet a second time to consider again the Mayor’s proposals including any revisions he may have made in response to the Council’s initial decision. The requirements of the 2001 regulations have been incorporated into the Budget and Policy Framework Procedure Rules at Part 4.3 of the Council’s constitution.
The Role of Overview and Scrutiny Committee and the Cabinet in the Budget Process
Please note that in Tower Hamlets we have an Executive/Directly Elected Mayoral System (DEM), the Overview and Scrutiny Committee (OSC)and Cabinet only can suggest and have no powers to change the budget put forward by the Mayor.
Friday 21 December 2018:
Initial despatch of budget papers. The Executive publishes draft budget proposals. The budget papers will be circulated to all Members including those on the Overview and Scrutiny Committee. The papers will also be included in the Cabinet agenda pack for the meeting in early January.
Access to Papers
The draft budget proposals will be included in the Cabinet Agenda Pack for the 9 January 2019 meeting and will also be published as a pre-meeting pack for the Council meeting on 20 February 2019.
Wednesday Cabinet, 9th January 2019:
Cabinet formally proposes the draft Budget. Mayor may move amendments/additions to the published report on the evening.
Thursday 10th January 2019 – Formal notification to Overview & Scrutiny:
Democratic Services write to the Chair of Overview & Scrutiny Committee confirming that the Mayor’s initial budget proposals have been circulated to all Members, and that any response of the Overview and Scrutiny Committee to these must be submitted to the Mayor by noon on Friday 25th January 2019 (this is in excess of the 10 clear working days required by the Constitution).
Monday 14th January 2019 – Meeting of the Overview and Scrutiny Committee
Specifically to discuss the Mayor’s proposals and formally consider O&S comments to be reported to the Mayor by the deadline above.
Tuesday 22nd January 2019:
Agenda despatch for Cabinet on 30th January, including (if available) O&S comments and Mayor’s revised budget proposals.
Cabinet, Wednesday 30th January 2019:
To consider the feedback (including from O&S) and to formally propose the budget to Council. If there are any new matters included that were not consulted upon with O&S, these may need to be the subject of a further consultation exercise as below.
Access to Papers:
The updated draft budget proposals will be included in the Cabinet Agenda Pack for the 30 January 2019 meeting and will also be published as a pre-meeting pack for the Council meeting on 20 February 2019.
Thursday 31st January 2019: Democratic Services will formally notify the O&S Members of any material changes to the Mayor’s proposals. Any comments of the O&S Committee on these must be notified to the Mayor by Friday 8th February 2019. Overview and Scrutiny Committee may need to hold an urgent extraordinary meeting to agree these.
Monday 4th February 2019 – Meeting of the Overview and Scrutiny Committee (Provisional)
Specifically to discuss any material changes to the Mayor’s proposals that were announced at Cabinet on 30th January. If there are no material changes then this meeting will not be held. The meeting will formally consider O&S comments to be reported to the Mayor by the deadline above.
Mayor’s Final Proposals: Tuesday 12th February 2019
Following receipt of any further O&S Committee comments the Mayor will confirm and publish his final budget proposals in the Council agenda.
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