Mayor's Budget Guidance 2012/13

Report: 6
Date: 21 July 2011
By: Treasurer

Summary

This report summarises the Mayor’s budget guidance issued for the 2012/13 budget planning round.

A. Recommendations

That members note the mayor’s budget guidance for the 2012/13 budget planning round, and the implications for the MPA budget.

B. Supporting information

Mayor’s budget guidance

1. The Mayor’s budget guidance for 2012/13 was issued on 27 May 2011, together with a letter from the Mayor to the Chief Executive of the Authority. A copy of these are enclosed at Appendices 1 and 2.

2. Unlike previous years the MPA/MPS (along with all other functional bodies) will be required to submit detailed savings proposals to balance the 2012/13 budget by 30 September 2011.

3. The purpose of the early deadline is to ensure that substantive issues on the 2012/13 budget can be fully set out in the Mayor’s draft budget proposals which he will issue to functional bodies for consultation in October 2011. A response to the draft budget proposals and final budget submissions for 2012-15 will then need to be made to the Mayor in November.

4. Key dates in the process are:

• Budget guidance issued on 27 May 2011 by the Mayor, revised if necessary in light of emerging issues
• Budget development by functional bodies 27 May 2011 to 30 September 2011
• Detailed savings proposals submitted to GLA by 30 September 2011
• Preliminary draft budget proposals issued by the Mayor for consultation with each of the functional bodies by 21 October 2011
• Full budget submission and a formal response to the budget proposals submitted to GLA before 18 November 2011
• Mayor’s formal draft budget proposals considered prepared and issued for general consultation from 15 December 2011 to mid-January 2012
• Assembly consideration of budget proposals from 15 December 2011 through to 10 February 2012

5. MPA/MPS officers are currently drawing up a timeline that will allow approval of the budget submission within statutory timescales. Once finalised this will be circulated to members for information.

Policy Priorities

6. The Mayor’s vision “to make London the best big city in the world” is to be delivered through focusing on five priority themes:

• Investing in young Londoners
• Standing up for London
• Making the most of London 2012
• Making London safer
• Improving Londoners’ quality of life

7. The business plan and budget needs to reflect, where appropriate, how the MPA/MPS intend to deliver these priorities. However, the guidance recognises that in the current economical climate, growth to support Mayoral priorities will be limited and functional bodies must concentrate on delivering savings.

Budget Proposals

8. By the end of September 2011 the MPA/MPS will be required to submit both detailed savings for 2012/13 totalling £92.8M and information on shared services. This early deadline is to ensure that substantive issues on the budget can be fully set out in the budget consultation to be issued by the Mayor in October 2011.

9. The MPA/MPS will then need to submit comments on the budget proposals and provide a detailed budget submission to the GLA by 18 November 2011. The submission will need to cover the period 2012/13 to 2014/15 and include both capital and revenue budget proposals. Setting out in high level terms what the MPA/MPS is planning to achieve over that period.

10. The Mayor’s draft component budgets will then be subject to wider consultation expected to commence on or around 15 December.

Financial Planning Guidelines

11. Based on the assumption that the MPA/MPS will receive a grant settlement reduced proportionally to the reductions announced as part of the 2010 comprehensive spending review the following financial planning guidelines have been set:

• 2012/13 - Council Tax requirement £679.6M – savings of £92.8M required
• 2013/14 Council Tax requirement of £679.6M – savings of £81.5M required
• 2014/15 Council Tax requirement £679.6M – savings of £79.7M required

C. Other organisational and community implications

Equality and Diversity Impact

1. Equality and diversity issues will be considered fully as part of the budget development process which will form part of the London Policing Plan.

Consideration of MET Forward

2. Met Forward will provide the strategic framework within which the budget proposals and London Policing Plan will be drafted.

Financial Implications

3. The budget submission and London Policing Plan will be drafted in line with the financial planning guidelines outlined in the Mayor’s budget guidance.

Legal Implications

4. None given.

Environmental Implications

5. Environmental sustainability issues will be fully reflected in budget submission.

Risk Implications

6. There are significant risks inherent in delivering policing services within the current financial planning guidelines which will need to be managed as part of the 2012-15 Business planning process.

D. Background papers

None

E. Contact details

Report authors: Annabel Adams, Treasurer, MPA

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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