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 2, gives an explanation of the Budget Meetings in Full Council Chamber.
FIRST (OR ONLY) BUDGET COUNCIL MEETING – 20th FEBRUARY 2019
Agenda
The agenda for the Budget Council Meeting will be published on 12th February. Ideally this will include the Mayor’s budget proposals. However, if the Mayor varies those proposals at the Cabinet meeting on 30th January, it may be necessary to consult further with O&S before the proposals are circulated. In that case if necessary, the agenda will show the budget papers as ‘to follow’ and the Mayor will circulate his proposals following receipt of O&S comments.
The purpose of the first Budget Meeting is to consider the Mayor’s proposals and any amendments. It is important that there is full discussion and at this stage amendments may be debated on any matters related to the budget.
There are no Members’ Questions or Motions on Notice at the Budget Meeting. Petitions are taken (a maximum of four as normal) but only if they relate to the Budget. Apart from the budget proposals and associated business, no other business is normally taken at the Budget Council meeting although the Procedure Rules do provide for the inclusion of other business ‘which by statute or in the opinion of the Chief Executive, after consultation with the Speaker of the Council, requires to be transacted’.
Amendments
Any councillor may propose an amendment to the Mayor’s budget. Normally a political group would just one composite amendment – effectively their alternative budget – including all of their proposed changes.
All amendments for consideration at the Budget Meeting must be sent to the Committee Services Manager by 9.30 a.m. on the working day prior to the Budget Meeting (i.e. Tuesday 19th February). The advice of the Chief Finance Officer will then be prepared on the proposed amendments.
The amendments received will then be circulated to the Mayor & all Councillors at least 24 hours before the Budget Meeting – i.e. by 7.00 p.m. on Tuesday 19th February. Officer comments will be circulated with those amendments if possible or otherwise as soon as they are available.
Other than amendments notified in advance as above, no further amendment will normally be taken at the budget meeting. However, there must be some provision for Members to move new amendments at the first meeting to ensure that the final outcome of the debate reflects the wishes of the majority of Members – for example by omitting or agreeing a different combination of elements of any amendments that are already on the table. The rules therefore enable the Council to agree (by a majority vote and having heard the advice of the Monitoring Officer, Section 151 Officer and Chief Executive) that an amendment without notice can be debated. [Note: (i) If any attempt is made to move a new amendment without notice the meeting will adjourn for officers to confer before providing their advice; (ii) amendments proposed once the vote has commenced will be too late.]
At the end of the debate there is a recorded vote on each amendment in turn, followed by a final recorded vote on the overall budget as amended.
A detailed procedure note for the budget debate will be circulated. At the end of the debate, if the Mayor’s budget proposals are passed, the Council’s budget is set. If not, there will inevitably be a second Budget Council Meeting.
SECOND BUDGET COUNCIL MEETING (IF REQUIRED): PROVISIONAL DATE 28th FEBRUARY 2019
Following the first budget meeting the Mayor has a period of at least 5 working days to reconsider his proposals in light of the amendment(s) agreed by the Council. By the end of that period (i.e. by 5pm 28th February), the Mayor must re-publish his proposals for consideration at a second Budget Council meeting. He may revise his proposals by including some or all of the Council’s amendments agreed at the first meeting, and must give reasons for the amendments included and those not included. He may not propose new amendments at this stage.
Unlike the first budget meeting, the tone and feel of the second meeting is about closure and resolution, rather than opening up the debate. At the second budget meeting the only matters that are in scope for debate are (i) the substantive budget agreed by the Council at the first meeting; and (ii) the Mayor’s revised budget proposals.
The second budget meeting will determine which of these is adopted. No new amendments may be introduced at the meeting.
At the meeting, the Mayor may accept the Council’s amended budget. If he does not, the debate proceeds (with the same order of speakers as at the first meeting), culminating in a vote on the Council’s amended budget. For the Council’s amended budget to succeed, at least two-thirds of the Members present and voting must vote in favour (abstentions do not count as a vote).
The purpose of these statutory rules is to guarantee that there will be a decision at the end of the process – either the Council’s amended budget will receive two-thirds support, in which case it will be adopted; or it will not, in which case the Mayor’s revised budget is deemed adopted in accordance with the regulations.
No suspension of procedure rules: At both Budget Council meetings, the provision allowing Council to suspend certain procedure rules does not apply.
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