Hounslow's 2012/13 Budget Passed - Zero Council Tax Increase, and a growth fund for Improvements

Tonight's Council meeting ended with the passing of Hounslow's 2012/13 budget.

•  - Council Tax Freeze for the 6th succesive year
• -  a £2m growth fund to deliver our pledges, and improve efficiencies

The Government has cut £62m from our overall budget over four years, and they will impose more in future years as they intend to continue to make the public sector pay for their failed deficit reduction policies.  Despite the challenge we  set a budget that achieves the required savings and allows for growth. There will be no closure of children’s centres or other services..The £16m savings for the next financial year are all efficiency savings -  such as on assets, contracts, shared services, transport and staff restructuring.

We have also created an element of growth:
-headroom to support growth in jobs and support for those needing  good quality work opportunities.  With 3 staff Hounslow must have the smallest Economic Development team, with no capacity to attract investment in borough and little scope to support to the vibrant but often fragile small business community
- better support to those 100s of families being tipped into real poverty as a result of this Governments tax and benefits policies. We are beginning to see the impact of some of these, and the Universal Credit will further exacerbate it.  Better advice and support, fair and affordable loans, good quality training.
- Investing in improvements to childrens and older people's services to better serve the most vulnerable in Hounslowl
- an Improvement fund that can be drawn on to invest in IT, training, re-organising and changing systems and processes to provide better run services, at lower cost to residents and the tax-payer.

All this on top of the achievements of the last year:

• no closure of children’s centres
• Transforming and modernising our processes
• Recruited 10 additional police officers and over 100 special constables,
• schools results continue to improve and remain above national average
• 330 Reception places 60 year 1 last September and another 90 next September.
• 1000 affordable homes completed or under construction, and 50 empty homes
• Grimebusters hotline
• Improvements to Hounslow Town Centre and the Masterplan agreed,
• Vacated 10 buildings to ensure better use of fewer buildings.
• Supporting those in Debt by funding the CSB to provided new and extended services,
• Innovation Grants for the voluntary sector
• A dedicated Olympics officer to ensure the borough makes the most of the Games coming to London

The Tory opposition had, for the first time brought along an alternative budget. They proposed a cut of £23.99 for a band D tax payer, around 50p a week.  They criticised us for tokenism when we did the same when in opposition.   Their budget deleted Labour's growth options, and made the mistake of suggesting a one-off VAT refund could be used for recurrent spending.  Sadly their lack of financial literacy was exposed at this point - you cannot fund recurrent costs from a one-off source.   In the end they supported half of the recommendations in the budget paper, and voted against the other half.

Leader Jagdish Sharma said  “We can look forward to a year of investment and progress - a year when our staff  earn the London Living Wage as a minimum,, when we’ll see the Hounslow town centre masterplan start to become a reality, when we will open our new Sandbanks resource centre with new residential and day places for older people, and we will build further on the good progress we have made on our pledges.”