Councillor J. Kent, the Leader of the Council, introduced the report which set out the proposals for the Prudential Indicators, reviewed the borrowing and investment strategies, amended the Annual Minimum Revenue Provision Statement and outlined a draft Treasury Management Budget for 2015/16. He advised the Chamber that the report had been debated at Cabinet.

In response the Leader of the Opposition raised concerns about the year on year increase in taxpayers underwriting borrowing and opposed the proposed delegation to Cabinet for borrowing and Prudential Indicators in relation to Gloriana.

The Leader of the Opposition advised the Chamber that he felt uncomfortable delegating such decisions and that when borrowing and lending significant sums to Gloriana, it was important that every elected Member had an opportunity to scrutinise these decisions at full Council. As a result he proposed that recommendation 1.1 b) be amended to negate any delegated decision.

The Deputy Leader of the Opposition echoed the sentiments raised regarding delegating decisions to Cabinet and felt that all Members had a right to vote on any budgetary measure. He added that he did not want to see further decisions delegated to Cabinet and that these should instead be taken at Council.

Councillor Johnson further echoed the sentiments raised and felt that more detailed budgetary information should have been provided so that Members could be clear on how the money would be spent.

In response the Leader of the Council emphasised that the Constitution, which had been agreed by all Members, clearly set out the rules and scheme of delegation and that Opposition Members had an opportunity to be involved in decision making and governance in relation to Gloriana through the cross-party Partnering Board.

The Leader of the Council further reported that detailed reports relating to the budget, borrowing strategies and Gloriana had regularly been submitted to Cabinet and relevant Overview and Scrutiny Committees and as a result there had been considerable opportunity for Members to submit questions or call-in decisions if they objected to any of the proposals.

The Leader of the Opposition felt that asking questions at Cabinet had little effect and that the Call-In process was diluted because of the fact that Labour Group Members held the positions of Chair on Overview and Scrutiny Committees.

The Leader of the Opposition further reported that all Members should better understand the risks and proposed that recommendation 1.1 b) be removed, which was seconded by Councillor Halden.

Councillor Worrall, Cabinet Member for Housing, commended the work and aims of Gloriana and expressed her frustration that this was being challenged at such a late stage, when there had been significant opportunity to raise any objections through the cross-party Partnering Board for Gloriana, Cabinet and Overview and Scrutiny Committee.

Councillor Ojetola advised Members that he was not in objection of the work of Gloriana, but he questioned the financial control responsibilities of Cabinet and stated that decisions should rest with all Members rather than just 9 Cabinet Members.

Councillor Morris-Cook felt that if the original recommendation was not agreed it was cause unnecessary delays for Gloriana, and encouraged all Members to engage with the established Cabinet, Overview and Scrutiny and Partnering Board process.

The Mayor put the substantive recommendations 1.1 (a), (c), (d) and (e) to the vote, upon which Members voted unanimously in favour of the recommendations, whereupon the Mayor declared these to be carried.

Thereafter the Mayor put recommendation 1.1 (b) to the vote, upon which 21 Members voted in favour of the recommendation and 26 Members voted against, whereupon the Mayor declared this to be lost.

RESOLVED:

1.         That the Council:

            (a)        Agree the Prudential Indicators as set out in Appendix 1;

(b)       Agree the Annual Borrowing and Investment Strategy in paragraph 2.29;

(c)        Approve the Annual Borrowing and Investment Strategy and the Annual Minimum Revenue Provision (MRP) Statement for 2015/16 and amends the existing 2014/15 Annual Minimum Revenue Provision Statement to the following:

·         The Council will set aside an amount each year which it deems to be prudent and appropriate, having regard to statutory requirements and relevant guidance issued by DCLG; and

(d)          Note the revised 2014/15 and 2015/16 borrowing and investment projections as set out in the report (paragraph 2.31).