Joint Budget Amendment 2013-14

Report to the Assembly on the Mayor’s
Draft Consolidated Budget for 2013 – 2014

Report to: London Assembly

Date: 8 February 2013

Report of: The London Assembly Labour, Green, and Liberal Democrat
Groups

Proposed by: John Biggs AM

Seconded by: Stephen Knight AM

PART A: INTRODUCTION & COMMENTARY1

1
This report is made up of two Parts, A and B. The text in Part A does not form part of the formal
budget amendments, which are set out in Part B.

PART A
The Mayor announced in his 2013-14 consultation budget that he would be reducing the GLA
Council Tax precept for London households by 1.2% 2. He further says that this is the first step
in his plan to reduce the precept by a total of 10% by 2016-17.

Given the unacceptable cuts to London’s emergency services that result from this budget, the
London Assembly’s Labour, Green, and Liberal Democrat Members believe that a trivial 7
pence per week cut in the level of the Band D Council Tax is the wrong priority for London.

Instead, we propose that the precept be frozen in 2013-14, with the £9.428 million this would
generate being use to protect frontline emergency services. We propose to divert £5.428
million of this saving towards the London Fire and Emergency Planning Authority’s reserves,
which will then be hypothecated to help meet the 2014-15 LFEPA budget deficit. The same
approach of freezing the precept in future years, rather than accepting the Mayor’s planned
precept cuts, can release the remaining funding needed to avoid any closure of fire stations
or cuts in the number of fire engines.

The remaining £4 million will be allocated to the Mayor’s Office for Policing and Crime in
order to mitigate the Mayor’s disastrous plans for the estate rationalisation. Priority will be
given to maintaining an adequate network of front counters for the public and local bases for
Safer Neighbourhood Teams.

The Mayor’s draft budget also fails to deliver sustained investment to tackle London’s deep-
seated environmental problems, fails to keep London’s public transport affordable, and fails
to do enough to address London's jobs and affordable housing shortages. We therefore call
on the Mayor to bring back a revised budget that:

• demonstrates how he will deliver on the goals and targets set out in his
environmental strategies, in particular to reduce London’s carbon dioxide emissions
and to clean up London’s unhealthy air;
• reduces the impact of his fares package; and
• takes seriously the twin crises of youth unemployment and unaffordable housing in
the capital.

2
Mayor of London (2013), Group Budget Proposals and Precepts 2013-14 (Consultation Document), p.6

PART B: Proposal to approve, with amendments, the Draft Consolidated Budget for the
2013-14 financial year for the Greater London Authority and the Functional Bodies.
RECOMMENDATIONS:
FORMAL BUDGET AMENDMENT
1. The Mayor’s draft consolidated budget (together with the component budgets comprised
within it) for 2013-14 be amended by the sum(s) shown in column number 3 of the table for
each constituent body, as set out and in accordance with the attached Schedule.
(These sums are the calculations under sections 85(4) to (8) of the Greater London Authority
Act 1999 (as amended) (‘The GLA Act’) which give rise to each of the amounts mentioned in
recommendations 2 and 3 below.)
2. The calculations referred to in recommendation 1 above, give rise to a component council tax
requirement for 2013-14 for each constituent body as follows:
Constituent body Component council tax
requirement
Greater London Authority: Mayor of London £72,756,150
Greater London Authority: London Assembly £2,600,000
Mayor’s Office for Policing and Crime £561,105,432
London Fire and Emergency Planning Authority £133,798,375
Transport for London £6,000,000
London Legacy Development Corporation £0

3. The component council tax requirements shown in recommendation 2 above, give rise to a
consolidated council tax requirement for the Authority for 2013-14 (shown at Line 73 in the
attached Schedule) of £776,259,957.

BUDGET RELATED MOTIONS
4. [WHERE APPLICABLE, INSERT ANY OTHER BUDGET RELATED MOTIONS REQUIRED]

___________________________________________________________________________
NOTES:
a. A simple majority of votes cast by Assembly Members is required to approve any amendment to
recommendations (1) to (3) above concerning the Draft Consolidated Budget; abstentions are not
counted.

b. To approve the Draft Consolidated Budget, without amendment, only a simple majority of votes
cast is required. Again, abstentions are not counted.

c. The Mayor is required to set a consolidated and component council tax requirement and it is this
amount which the Assembly has the power to amend. The council tax requirement equates to the
amount which will be allocated to the Mayor, the Assembly and for each functional body from the
Mayor’s council tax precept. These individual functional body requirements are consolidated to
form the consolidated council tax requirement for the GLA Group.

d. The income estimates calculated under section 85 5(a) of the GLA Act are presented in four parts
within the statutory calculations:

- Income not in respect of government grant, council tax precept or retained business rates.
This includes fare revenues, congestion charging, the Crossrail business rate supplement and
all other income not received from central government, council tax precept or retained
business rates. This also includes for the GLA (Mayor) the GLA’s share of the aggregate
forecast net collection fund surplus at 31 March 2013 reported by the 33 London billing
authorities (line 6 for the Mayor, line 18 for the Assembly, line 30 for MOPAC, line 42 for
LFEPA , line 54 for TfL, and line 66 for the LLDC);

- Income in respect of specific and special government grants. This includes those grants
which are not regarded as general grants. This includes the GLA Transport grant for TfL and
specific grants for the GLA, LFEPA and MOPAC (line 7 for the Mayor, line 19 for the Assembly,
line 31 for MOPAC, line 43 for LFEPA , line 55 for TfL, and line 67 for the LLDC);

- Income in respect of general government grants. From 2013-14 this comprises Revenue
Support Grant and for MOPAC only core Home Office police and principal police formula
grant (line 8 for the Mayor, line 20 for the Assembly, line 32 for MOPAC, line 44 for LFEPA,
line 56 for TfL, and line 68 for the LLDC); and

- Income in respect of retained business rates (line 9 for the Mayor, line 21 for the Assembly,
line 33 for MOPAC, line 45 for LFEPA, line 57 for TfL, and line 69 for the LLDC).

e. The LLDC came into being on 9 March 2012 (under SI 2012/ 310) as a Mayoral development
corporation and is a functional body; the LLDC is also a constituent body for the purposes of
sections 85 to 99 of the Act. The property rights and liabilities of the Olympic Park Legacy
Company were substantially transferred to the LLDC during 2012-13.

SCHEDULE
Part 1: Greater London Authority: Mayor of London (“Mayor”) draft component budget

NOTE: Amendments to the draft component council tax will take effect as follows. Where a figure is
shown in column 3, the figure in column 2 is amended to the figure in column 3. If no figure is shown
in column 3, then the figure in column 2 shall be taken to apply un-amended. If “nil” or “£0” is
shown in column 3, then the figure in column 2 is amended to nil.

1 2 3 4
Line Mayor’s Budget Description
Proposal amendment
(1) £738,743,407 £ estimated expenditure of the Mayor for the year calculated
in accordance with s85(4)(a) of the GLA Act
(2) £5,600,000 £ estimated allowance for contingencies for the Mayor under
s85(4)(b) of the GLA Act
(3) £0 £ estimated reserves to be raised for meeting future
expenditure of the Mayor under s85(4)(c) of the GLA Act
(4) £0 £ estimate of reserves to meet a revenue account deficit of
the Mayor under s85(4)(d) of the GLA Act
(5) £744,343,407 £ aggregate of the amounts for the items set out in s85(4) of
the GLA Act for the Mayor (lines (1) + (2) + (3) + (4) above)
(6) -£495,518,000 -£ estimate of the Mayor’s income not in respect of
Government grant, retained business rates or council tax
precept calculated in accordance with s85(5)(a) of the GLA
Act including the GLA share of the collection fund surplus
for the 33 London council tax billing authorities
(7) - £14,573,214 -£ estimate of the Mayor’s special & specific government
grant income calculated in accordance with s85(5)(a) of the
GLA Act
(8) - £35,849,927 -£ estimate of the Mayor’s income in respect of general
government grants (revenue support grant) calculated in
accordance with s85(5)(a) of the GLA Act
(9) - £29,838,491 -£ estimate of the Mayor’s income in respect of retained
business rates calculated in accordance with s85(5)(a) of the
GLA Act
(10) -£95,807,625 -£ estimate of Mayor’s reserves to be used in meeting amounts
in lines (1) and (2) above under s85(5)(b) of the GLA Act
(11) - £671,587,257 -£ aggregate of the amounts for the items set out in section
85(5) of the GLA Act for the Mayor (lines (6) + (7) + (8) + (9) +
(10) above)
(12) £ 72,756,150 £ the component council tax requirement for the Mayor
(being the amount by which the aggregate at (5) above
exceeds the aggregate at (11) above calculated in
accordance with section 85(6) of the GLA Act)
The draft component council tax requirement for the Mayor for 2013-14 is £ 72,756,150
[insert Line 12 figure]

Part 2: Greater London Authority: London Assembly (“Assembly”) draft component budget


1 2 3 4
proposal amendment
(13) £7,607,000 £ estimated expenditure of the Assembly for the year
calculated in accordance with s85(4)(a) of the GLA Act
(14) £0 £ estimated allowance for contingencies for the Assembly
under s85(4)(b) of the GLA Act
expenditure of the Assembly under s85(4)(c) of the GLA
Act
(16) £0 £ estimate of reserves to meet a revenue account deficit of
the Assembly under s85(4)(d) of the GLA Act
(17) £7,607,000 £ aggregate of the amounts for the items set out in s85(4)
of the GLA Act for the Assembly (lines (13) + (14) + (15) +
(16) above)
(18) -£175,313 -£ estimate of the Assembly’s income not in respect of
Government grant, retained business rates or council tax
precept calculated in accordance with s85(5)(a) of the
GLA Act
(19) -£0 -£ estimate of the Assembly’s special & specific government
grant income calculated in accordance with s85(5)(a) of
the GLA Act
(20) -£2,786,405 -£ estimate of the Assembly’s income in respect of general
(21) -£2,045,282 -£ estimate of the Assembly’s income in respect of retained
business rates calculated in accordance with s85(5)(a) of
the GLA Act
(22) £0 -£ estimate of Assembly’s reserves to be used in meeting
amounts in lines (13) and (14) above under s85(5)(b) of
the GLA Act
(23) -£5,007,000 -£ aggregate of the amounts for the items set out in section
85(5) of the GLA Act for the Assembly (lines (18) + (19) +
(20) + (21) + (22) above)
(24) £ 2,600,000 £ the component council tax requirement for the Assembly
(being the amount by which the aggregate at (17) above
The draft component council tax requirement for the Assembly for 2013-14 is: £2,600,000

Part 3: Mayor’s Office for Policing and Crime (“MOPAC”) draft component budget


1 2 3 4
proposal amendment
(25) £3,269,900,000 £3,273,900,000 estimated expenditure of the MOPAC calculated in
(26) £0 £ estimated allowance for contingencies for the MOPAC
under s85(4)(b) of the GLA Act
(27) £27,300,000 £ estimated reserves to be raised for meeting future
expenditure of the MOPAC under s85(4)(c) of the GLA
Act
(28) £0 £ estimate of reserves to meet a revenue account deficit
of the MOPAC under s85(4)(d) of the GLA Act
(29) £3,297,200,000 £3,301,200,000 aggregate of the amounts for the items set out in
s85(4) of the GLA Act for the MOPAC (lines (25) + (26) +
(27) + (28) above)
(30) -£297,100,000 -£ estimate of the MOPAC’s income not in respect of
Government grant, retained business rates or council
tax precept calculated in accordance with s85(5)(a) of
the GLA Act
(31) -£473,800,000 -£ estimate of the MOPAC’s special & specific
government grant income calculated in accordance
with s85(5)(a) of the GLA Act
(32) -£1,969,194,568 -£ estimate of the MOPAC’s income in respect of general
government grants (revenue support grant, core
Home Office police grant and principal police formula
grant) calculated in accordance with s85(5)(a) of the
GLA Act
(33) £0 -£ estimate of the MOPAC’s income in respect of retained
business rates calculated in accordance with s85(5)(a)
of the GLA Act
(34) £0 -£ estimate of MOPAC’s reserves to be used in meeting
amounts in lines (25) and (26) above under s85(5)(b) of
the GLA Act
(35) -£2,740,094,568 -£ aggregate of the amounts for the items set out in
section 85(5) of the GLA Act for the MOPAC (lines (30)
+ (31) + (32) + (33) + (34) above)
(36) £557,105,432 £561,105,432 the component council tax requirement for MOPAC
(being the amount by which the aggregate at (29)
above exceeds the aggregate at (35) above calculated
in accordance with section 85(6) of the GLA Act)

The draft component council tax requirement for the MOPAC for 2013-14 is:
£561,105,432________

Part 4: London Fire and Emergency Planning Authority (“LFEPA”) draft component budget


1 2 3 4
Mayor’s Budget Description
Proposal amendment
(37) £445,071,409 £ estimated expenditure of LFEPA for the year calculated in
(38) £0 £ estimated allowance for contingencies for LFEPA under
expenditure of LFEPA under s85(4)(c) of the GLA Act
(40) £0 £5,428,000 estimate of reserves to meet a revenue account deficit of
LFEPA under s85(4)(d) of the GLA Act
(41) £445,071,409 £450,499,409 aggregate of the amounts for the items set out in s85(4) of
the GLA Act for LFEPA (lines (37) + (38) + (39) + (40) above)
(42) -£30,100,000 -£ estimate of LFEPA’s income not in respect of Government
grant, retained business rates or council tax precept
(43) -£10,900,000 -£ estimate of LFEPA’s special & specific government grant
income calculated in accordance with s85(5)(a) of the GLA
Act
(44) -£163,550,650 -£ estimate of LFEPA’s income in respect of general
(45) -£108,850,384 -£ estimate of LFEPA’s income in respect of retained business
rates calculated in accordance with s85(5)(a) of the GLA
Act
(46) -£3,300,000 -£ estimate of LFEPA’s reserves to be used in meeting
amounts in lines (37) and (38) above under s85(5)(b) of the
GLA Act
(47) -£316,701,034 -£ aggregate of the amounts for the items set out in section
85(5) of the GLA Act for LFEPA (lines (42) + (43) + (44) + (45)
+ (46) above)
(48) £128,370,375 £133,798,375 the component council tax requirement for LFEPA (being
the amount by which the aggregate at (41) above exceeds
the aggregate at (47) above calculated in accordance with
section 85(6) of the GLA Act)
The final draft component council tax requirement for LFEPA for 2013-14 is: £133,798,375
[Insert Line 48 figure]

Part 5: Transport for London (“TfL”) draft component budget

shown in column 3, the figure in column 2 is amended to the figure in column 3. If no figure is
shown in column 3, then the figure in column 2 shall be taken to apply un-amended. If “nil” or
“£0” is shown in column 3, then the figure in column 2 is amended to nil.

1 2 3 4
proposal amendment

(49) £6,731,775,000 £ estimated expenditure of TfL for the year calculated
(50) £0 £ estimated allowance for contingencies for TfL under
expenditure of TfL under s85(4)(c) of the GLA Act
of TfL under s85(4)(d) of the GLA Act
(53) £6,731,775,000 £ aggregate of the amounts for the items set out in
s85(4) of the GLA Act for the TfL (lines (49) + (50) + (51)
+ (52) above)
(54) -£4,773,000,000 -£ estimate of TfL’s income not in respect of
the GLA Act
(55) -£1,150,000,000 -£ estimate of TfL’s special & specific government grant
income calculated in accordance with s85(5)(a) of the
GLA Act
(56) £0 -£ estimate of TfL’s income in respect of general
government grants (revenue support grant)
(57) -£802,775,000 -£ estimate of TfL’s income in respect of retained
of the GLA Act
(58) £0 -£ estimate of TfL’s reserves to be used in meeting
amounts in lines (49) and (50) above under s85(5)(b)
of the GLA Act
(59) -£6,725,775,000 -£ aggregate of the amounts for the items set out in
section 85(5) of the GLA Act for TfL
(lines (54) + (55) + (56) + (57) + (58) above)
(60) £6,000,000 £ the component council tax requirement for TfL (being
the amount by which the aggregate at (53) above
The draft component council tax requirement for TfL for 2013-14 is: £ 6,000,000
[Insert Line 60 figure]

Part 6: London Legacy Development Corporation (“LLDC”) draft component budget


1 2 3 4
proposal amendment
(61) £44,200,000 £ estimated expenditure of LLDC for the year calculated
(62) £0 £ estimated allowance for contingencies for LLDC under
expenditure of LLDC under s85(4)(c) of the GLA Act
of LLDC under s85(4)(d) of the GLA Act
(65) £44,200,000 £ aggregate of the amounts for the items set out in
s85(4) of the GLA Act for LLDC (lines (61) + (62) + (63) +
(64) above)
(66) -£38,700,000 -£ estimate of LLDC’s income not in respect of
the GLA Act
(67) £0 -£ estimate of LLDC’s special & specific government
grant income calculated in accordance with s85(5)(a)
of the GLA Act
(68) £0 -£ estimate of LLDC’s income in respect of general
government grants (revenue support grant)
(69) £0 -£ estimate of LLDC’s income in respect of retained
of the GLA Act
(70) -£5,500,000 -£ estimate of LLDC’s reserves to be used in meeting
amounts in lines (61) and (62) above under s85(5)(b)
of the GLA Act
(71) -£44,200,000 -£ aggregate of the amounts for the items set out in
section 85(5) of the GLA Act for LLDC
(lines (66) + (67) + (68) + (69) + (70) above)
(72) £0 £ the component council tax requirement for LLDC
(being the amount by which the aggregate at (65)
above exceeds the aggregate at (71) above calculated
in accordance with section 85(6) of the GLA Act)
The draft component budget requirement for LLDC for 2013-14 is: £ 0_______

Part 7: The Greater London Authority (“GLA") draft consolidated council tax requirement
calculations

NOTE: Amendments to the draft consolidated council tax will take effect as follows. Where a figure is

1 2 3 4
Line Mayor’s proposal Budget amendment Description
(73) £766,831,957 £776,259,957 the GLA’s consolidated council tax
requirement (the sum of the amounts in
lines (12) + (24) + (36) + (48) +(60) +(72)
calculated in accordance with section
85(8) of the GLA Act

The final consolidated council tax requirement for 2013-14 is: £776,259,957

Joint Budget Amendment 2013-14

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Joint Budget Amendment 2013-14