Part 4 - Budget and Policy Framework Rules
1. The Framework for Cabinet Decisions
1.1 The Council Meeting will be responsible for the adoption of the Budget and Policy Framework. Once a Budget and Policy Framework is in place, it will be the responsibility of the Cabinet to implement it.
1.2 The following comprise the Policy framework:
- Medium Term Financial Plan
- Asset Management Plan and Strategy
- Local Area Agreement
- Corporate Plan
- Community Safety Partnership Plan
- Sustainable Community Strategy
- Local Development Framework
- Climate Change Strategy
- Designation of Statutory Officers (Head of Paid Service, Sections 151 Officer and Monitoring Officer)
- Powers relating to Overview and Scrutiny
- Members Allowance Scheme
- Licensing Policy Statement
- Governance Arrangements Changes to the Constitution, new Executive Arrangements, changes to Petitions Scheme)
2. Process for Developing the Framework
2.1 The Cabinet will publicise a timetable for making proposals to the Council Meeting for the adoption of any plan, strategy or budget that forms part of the Budget and Policy Framework, and its arrangements for consultation after publication of those initial proposals. The Chairs of Scrutiny Committees will also be notified. The consultation period shall in each instance be not less then 6 weeks.
2.2 At the end of that period, the Cabinet will then draw up firm proposals having regard to the responses to that consultation. If a relevant Scrutiny Committee wishes to respond to the Cabinet in that consultation process then it may do so. It is open to the Scrutiny Committee to investigate, research or report in detail with policy recommendations before the end of the consultation period. The Cabinet will take any response from an Overview and Scrutiny Committee into account in drawing up firm proposals for submission to the Council Meeting, and its report to the Council Meeting will reflect the comments made by consultees and the Cabinet’s response.
2.3 Once the Cabinet has approved the firm proposals, the Monitoring Officer will refer them at the earliest opportunity to the Council Meeting for decision.
2.4 In reaching a decision, the Council Meeting may adopt the Cabinet’s proposals, amend them, refer them back to the Cabinet for further consideration, or in principle, substitute its own proposals in their place.
2.5 If it accepts the recommendation of the Cabinet without amendment, the Council Meeting may make a decision which has immediate effect. Otherwise, it may only make an in-principle decision. In either case, the decision will be made on the basis of a simple majority of votes cast at the meeting.
2.6 The decision will be publicised in accordance with Article 11 and a copy shall be given to the Leader of the Council.
2.7 An in-principle decision will automatically become effective 5 working days from the date of the Council’s decision, unless the Leader informs the Monitoring Officer in writing within 4 working days that he/she objects to the decision becoming effective and provides reasons why.
2.8 In that case, the Monitoring Officer will call a Council Meeting within a further 10 working days. The Council Meeting will be required to re-consider its decision and the Leader’s written submission. The Council Meeting may
(i) approve the Cabinet’s recommendation by a simple majority of votes cast at the meeting; or(ii) approve a different decision which does not accord with the recommendation of the Cabinet by a simple majority.
2.9 The decision shall then be made public in accordance with Article 11, and shall be implemented immediately;
2.10 In approving the Budget and Policy Framework, the Council Meeting will also specify the extent of virement within the budget and degree of in-year changes to the policy framework which may be undertaken by the Cabinet, in accordance with paragraphs 5 and 6 of these Rules (virement and in-year adjustments). Any other changes to the policy and budgetary framework are reserved to the Council Meeting.
3 Decisions outside the Budget or Policy Framework
3.1 Subject to the provisions of paragraph 5 (virement) the Cabinet, a Director, Assistant Director or Senior Manager or any body under joint arrangements discharging Executive Functions may only take decisions which are in line with the Budget and Policy Framework. If any of these bodies or persons wishes to make a decision which is contrary to the policy framework, or contrary to or not wholly in accordance with the budget approved by the Council Meeting, then that decision may only be taken by the Council Meeting, subject to 4 below.
3.2 If the Cabinet, a Director, Assistant Director or a member of the Senior Managers Group or any body under joint arrangements discharging Executive Functions want to make such a decision, they shall take advice from the Monitoring Officer and/or the Chief Finance Officer as to whether the decision they want to make would be contrary to the policy framework, or contrary to or not wholly in accordance with the budget. If the advice of either of those Officers is that the decision would not be in line with the existing budget and/or policy framework, then the decision must be referred by that body or person to the Council for decision, unless the decision is a matter of urgency, in which case the provisions in paragraph 4 (urgent decisions outside the budget and policy framework) shall apply.
4 Urgent Decisions outside the Budget or Policy Framework
4.1 The Cabinet, the Chief Executive, a Director or a member of the Senior Managers Group or any body under joint arrangements discharging Executive functions may take a decision which is contrary to the Policy Framework or contrary to or not wholly in accordance with the Budget if the decision is a matter of urgency. However, the decision may only be taken:
(i) if it is not practical to convene a quorate meeting of the Council Meeting; and(ii) if the Chair of a Scrutiny Committee agrees that the decision is a matter of urgency.
The reasons why it is not practical to convene a quorate meeting of the Council Meeting and the Chair of a Scrutiny Committee’s consent to the decision being taken as a matter of urgency must be noted on the record of the decision. In the absence of the Chair of a Scrutiny Committee, the consent of the Chair of the Council, and in the absence of both, the Vice-Chair, will be sufficient.
4.2 Following the decision, the decision taker will provide a full report to the next available Council Meeting explaining the decision, the reasons for it and why the decision was treated as a matter of urgency.
5 Virement
(a) The Council shall have the following budget heads:
General Fund
Central ServicesCultural ServicesEnvironmental ServicesPlanning and DevelopmentHighways and TransportHousing ServicesPersonal Social ServicesCorporate and Democratic CoreNon-apportionable OverheadsCentral CostsHousing Revenue AccountManagement and Maintenance(b) Steps taken by the Cabinet, a Senior Officer or under joint arrangements (if any) discharging Executive functions to implement Council policy shall not exceed those budgets allocated to each budget head. However the Cabinet, or a Senior Officer shall be entitled to vire across budget heads on three occasions in any one year, where each individual virement does not exceed £50,000 in total and the aggregated total virement must not exceed £150,000. Beyond that limit approval for any virement across budget heads shall require the approval of the Council.
6 In-Year Changes to Policy Framework
The responsibility for agreeing the budget and policy framework lies with the Council, and decisions by the Cabinet, a Senior Officer or joint arrangements (if any) discharging executive functions must be in line with it. No changes to any policy and strategy which make up the policy framework may be made by those bodies or individuals except those changes:
(a) which will result in the closure or discontinuance of a service or part of service to meet a budgetary constraint;
(b) which are necessary to ensure compliance with the law, ministerial direction or Government guidance;
(c) in relation to the policy framework in respect of a policy which would normally be agreed annually by the Council following consultation, but where the existing policy document is silent on the matter under consideration;
(d) in response to recommendations made by the Council’s External
Auditors.
7 Call-In of Decisions Outside the Budget or Policy Framework
(a) Where an Overview and Scrutiny Committee is of the opinion that a Cabinet decision is, or if made would be, contrary to the policy framework, or contrary to or not wholly in accordance with the Council’s budget, then it shall seek advice from the Monitoring Officer and/or Section 151 Officer.
(b) In respect of functions which are the responsibility of the Cabinet, the Monitoring Officer’s report and/or Section 151 Officer’s report shall be to the Cabinet with a copy to every Member of the Council. Regardless of whether the decision is delegated or not, the Cabinet must meet to decide what action to take in respect of the Monitoring Officer’s report and to prepare a report to Council in the event that the Monitoring Officer or the Section 151 Officer conclude that the decision was a departure, and to the relevant Overview and Scrutiny Committee if the Monitoring Officer or the Section 151 Officer conclude that the decision was not a departure.
(c) If the decision has yet to be made, or has been made but not yet implemented, and the advice from the Monitoring Officer and/or the Section 151 Officer is that the decision is or would be contrary to the policy framework or contrary to or not wholly in accordance with the budget, the relevant Overview and Scrutiny Committee may refer the matter to Council. In such cases, no further action will be taken in respect of the decision or its implementation until the Council has met and considered the matter. At the meeting it will receive a report of the decision or proposals and the advice of the Monitoring Officer and/or the Section 151 Officer. The Council may either:
(i) endorse a decision or proposal of the executive decision taker as falling within the existing budget and policy framework. In this case no further action is required, save that the decision of the Council be minuted and circulated to all Councillors in the normal way; or(ii) amend the Council’s financial regulations or policy concerned to encompass the decision or proposal of the body or individual responsible for that executive function and agree to the decision with immediate effect. In this case, no further action is required save that the decision of the Council be minuted and circulated to all Councillors in the normal way; or(iii) where the Council accepts that the decision or proposal is contrary to the policy framework or contrary to or not wholly in accordance with the budget, and does not amend the existing framework or accommodate it, require the Cabinet to reconsider the matter in accordance with the advice of either the Monitoring Officer/Section 151 Officer.
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