2.2.1  Introduction

Developing and agreeing the budget and policy framework is a key function of Full Council. It sets the context within which decision-making by the Executive takes place.  Full Council is responsible for agreeing the budget and policy framework and the Executive is responsible for implementing it.

Budgetary Framework

2.2.2  Annual Budget Setting Process

The annual Revenue and Capital budgets will be set by Council prior to the beginning of the financial year following a recommendation from the Executive.  At this time the Council may also approve indicative budgets for future years, however these budgets do not provide authority to spend unless otherwise specified.  Budgets will be formulated and presented in accordance with a timetable agreed by the Council’s Chief Finance Officer in consultation with the Leader of the Council.  The timetable and supporting guidance will include the role of Officers, Councillors and Scrutiny Committees, and will set out details of any public consultation. Details of the timetable and guidance will be available from the Chief Finance Officer.

2.2.3  Procedure for Approval of the Budget by the Council

Once the Executive has considered firm budgetary proposals, they will be referred, at the earliest opportunity, to the Full Council for decision.  In reaching a decision, Full Council may adopt the Executive’s proposals, amend them, refer them back to the Executive for further consideration or substitute its own proposals in their place, in accordance with the provisions set out below.

2.2.3.1

The following procedure is required in accordance with provisions of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 and must be applied in a situation where the Council objects to the Executive’s recommendations in respect of any item or items making up the annual budget.

2.2.3.2

Where Full Council raises objections to the Executive’s recommendation, it shall resolve to adjourn to allow the Leader of the Council and Lead Executive Councillor to consider these objections.  Following this adjournment, the Leader of the Council and Lead Executive Councillor may put forward amendments to the recommendation in order to address the Council’s objections.  Having considered these amendments, the Council may approve the recommendation as amended, or it shall resolve that the matter be reconsidered by the Executive within five working days.

2.2.3.3

Once the Executive has reconsidered the matter it shall submit a further report to another meeting of Full Council convened for the purpose by the Chief Executive, to be held within ten working days of the expiry of the five working day period.  The Executive may submit a revised proposal to Full Council, setting out reasons for the changes.  Alternatively, it may submit a proposal without amendment, in which case its report shall set out the reasons why it disagrees with Full Council’s objection.

When the report is reconsidered Full Council may approve the Executive’s proposals, or take a different decision, having taken into account any amendments the Executive has made to its original proposals, the reasons for amendments, any disagreement the Executive has with Full Council’s original objections and the reasons for that disagreement.

2.2.3.4

Immediately after any vote is taken at a budget decision meeting regarding the budget, there must be recorded in the minutes of the proceedings of that meeting the names of the persons who cast a vote for the decision or against the decision or who abstained from voting.

2.2.4  In Year Budget Adjustments

Budgets may be increased in year by way of a supplementary estimate that must be approved by the Executive.  In addition, Full Council approval is required when a supplementary estimate exceeds £500,000 and/or the cumulative total of supplementary estimates for the year exceeds 2% of the Council’s net budget.  Expenditure of an urgent health and safety nature may be committed without budget in accordance with the Council’s Financial Regulations.

2.2.4.1

Budget transfers between budget heads (virements) are authorised in accordance with the Council’s Financial Regulations set out in Chapter 12.

2.2.5  Budget Monitoring

Income and expenditure must be collected and incurred in accordance with the Council’s Financial Regulations Chapter 12.  Budget monitoring is undertaken in accordance with the budget monitoring protocol agreed by the Council’s Chief Finance Officer.  This will include the roles of Officers, Councillors and working groups.

2.2.5.1

The Executive will consider both revenue and capital budget monitoring reports on a quarterly basis.  If the overall forecast variance exceeds 2% of the Council’s net budget, the monitoring report shall be presented to Council, seeking action to address.

2.2.6  Enforcement

Adherence to the budgetary framework shall be enforced, as appropriate, by: the Council’s Chief Finance Officer; the Council’s Monitoring Officer; the Audit Committee and the Overview and Scrutiny Management Committee.

Policy Framework

2.2.7  Definition

The Policy Framework means the key plans and strategies which underpin the way the Council will deliver services to its residents.  A full list of the plans and strategies that comprise this framework is set out in Chapter 4.1.  Broadly speaking, they include plans which encompass all of the Council’s services to make up the Council’s Corporate Planning Framework, for example the Community Vision and Council Plan, as well as more service-specific documents required by Government such as the Local Transport Plan.

2.2.8  Procedure for the Approval of Policies Comprising the Policy Framework by Council

Plans and strategies comprising the Policy Framework being brought forward for Full Council approval (either new or revisions to existing policies) shall be put before the Executive to request that the Executive recommend the item to full Council and be identified on the Executive Forward Programme (see Executive Rules of Procedure set out in Chapter 5.4. A detailed timetable for the preparation of the plan or strategy shall be prepared and made available by the appropriate Director, to include full details of consultation with partners and residents and the extent of Councillor involvement through the Lead (Executive) Councillor, the Overview and Scrutiny Committees and working groups as appropriate.

2.2.8.1

Where Full Council raises objections to a draft plan or strategy, it shall resolve to adjourn to allow the Leader of the Council and Lead Executive Councillor to consider these objections.  Following this adjournment, the Leader of the Council and Lead Executive Councillor may put forward amendments to the draft plan or strategy in order to address the Council’s objections.  Having considered these amendments, Full Council may approve the plan or strategy as amended, or it shall resolve that the plan or strategy be reconsidered by the Executive.

2.2.8.2

The plan or strategy shall be reconsidered by the Executive within five working days of the Council Resolution in these terms.  Once the Executive has reconsidered the matter it shall resubmit the plan or strategy to a further meeting of Full Council convened by the Chief Executive, to be held within ten working days of the expiry of the five working day period.  The Executive may submit a revised plan or strategy to Full Council, setting out reasons for the revisions.  Alternatively, it may submit the plan or strategy without amendment, setting out the reasons why it disagrees with Full Council’s objection.  When the plan or strategy is reconsidered Full Council may approve the Executive’s recommendation, or take a different decision, having considered any amendments the Executive has made to the plan or strategy, the reasons for the amendments, any disagreement the Executive has with Full Council’s original objections and the reasons for that disagreement.

2.2.9  Decisions Outside the Budget or Policy Framework

Circumstances in which decisions may be taken by an individual or body other than Full Council are set out within the Financial Regulations (see Chapter 12).  In all other cases, any body or person wishing to make a decision which is contrary to the policy framework, or contrary to or not wholly in accordance with the budget approved by Full Council, must refer that decision to Full Council.

2.2.9.1

Any body or individual of the opinion that a forthcoming decision on a particular matter would be contrary to, or not wholly in accordance with, the budget and policy framework, should seek the advice of the Monitoring Officer and Chief Finance Officer.  These Officers shall decide whether the decision would be of this nature, and direct accordingly.

2.2.10  

Procedure where a Decision has been Taken Outside the Budget or Policy Framework
Where a body or individual is of the opinion that a decision taken in relation to any of the Council’s Executive functions was contrary to the policy framework, or contrary to or not wholly in accordance with the Council’s budget, they should seek advice from the Monitoring Officer and Chief Finance Officer, setting out in writing, within seven working days of the decision, the grounds on which they consider it to have been contrary.

2.2.10.1

The Monitoring Officer and Chief Finance Officer may conclude that the decision did not constitute a departure, in which case they shall advise the body or individual in writing of the reasons for their conclusion.  In these circumstances no further action will be necessary.

2.2.10.2

If the Monitoring Officer and Chief Finance Officer conclude that the decision was contrary, or not wholly in accordance with, the budget or policy framework, they shall inform the decision-taker in writing, setting out the reasons upon which their conclusion was based.  They shall then require the decision-taking body or individual to prepare a report to Full Council, which shall meet within ten working days of this instruction.  The report shall include the Monitoring Officer and Chief Finance Officer’s advice as appropriate.

2.2.10.3

Full Council may either:

1. endorse the decision of the decision-taker as falling within the existing budget and policy framework.  In this case no further action is required, save that the decision of Full Council be minuted and circulated to all Councillors in the normal way; or
2. accept that the decision or proposal was contrary to the policy framework or contrary to, or not wholly in accordance with the budget.  If Full Council does not resolve to amend the existing framework to accommodate the decision or proposal, it shall require the decision-taking body or individual to reconsider the matter in accordance with the advice of either the Monitoring Officer / Chief Finance Officer.