Budget proposals for 2012/13 to support residents and businesses

Published as part of Southwark's budget setting process for 2012/13, council chiefs said the proposed initiatives would help create a "fairer future for all" in the borough despite sharp falls in government funding and ongoing uncertainty in the national economy.

The council said it was also aiming to freeze council tax for 2012/13 with a band D bill of £1,221.96.

Subject to approval at Council Assembly in February next year, the council said it would:

• Expand its free healthy school meals programme to include hundreds of extra pupils in years two and three at primary school. This is in addition to reception and year one classes pupils who are already taking part in the scheme.
• Introduce for the first time clear plans to ensure that the London Living Wage of £8.30 per hour is paid not only to directly employed staff but to also those who work for the council through employment agencies or contractors.
• Create a new Cleaner, Greener Safer Revenue Fund for the borough's community councils. This will equate to an £10,000 per ward for Community Councils to determine how to spend the money from April next year.
• Establish a £1million Community Restoration Fund to support schemes and initiatives that help improve the parts of the borough most affected by the serious disorder that took place in Southwark in August. This money will be split between support to businesses and young people.
• Continue its successful £1.5million Voluntary Sector Transition Fund scheme established earlier this year to provide interim support to voluntary and charity groups so they can better meet the challenges they face from reduced public sector funding.
• Use £1.5million from the government's new homes bonus grant to support council services.

The tough financial climate, however, means the council will have to take some difficult decisions over the level of services it provides in the year ahead.

Savings will need to be made across all council departments including £2.7million from finance and resources and just over £1million from the deputy chief executive's department which includes human resources and economic development by reducing back office costs and restructuring management.

Councillor Richard Livingstone, cabinet member for finance and resources, said: "In common with councils across the country, we have a very tough few years ahead of us. Unprecedented cuts in government funding mean we have to make significant savings and so we may not be able to provide all of the services that we have done previously.

"We are also faced with inflation running well ahead of government targets and increasing cost pressures that are outside of our control. To complicate matters further, we also do not yet have a clear indication of what further government cuts are coming in 2013/14.

"It is in this very challenging context that we have drawn up our budget proposals to help steer Southwark through the current difficult economic climate for 2012/13.

"Despite the savings we have to make, we will continue to do all we can to protect and support our most vulnerable residents while providing excellent value for money for our local residents and businesses as we strive to create a fairer future for all in Southwark."

The full set of budget proposals can be viewed here: http://moderngov.southwarksites.com/mgConvert2PDF.aspx?ID=24935