Item 5C - Proposed Revenue Budget and Borough Subscriptions and Charges 2020/21 (E12/19

Summary 
This report proposes the level of boroughs subscriptions and charges to be levied in 2020/21, together with the consolidated revenue income and expenditure budget for 2020/21. The report also updates the Executive on the current level of London Councils reserves after considering all current and proposed commitments and the timetable for the overall budget approval process. Following consideration by this meeting, proposals will be submitted to the Leaders’ Committee meeting on 3 December for final consideration and approval.
Recommendations 
 
The Executive is asked to recommend that the Leaders’ Committee approve at their meeting on 3 December 2019 the following borough subscription and charges:
• The proposed Joint Committee subscription for boroughs of £161,958 per borough for 2020/21, no change on the charge of £161,958 for 2019/20 (paragraph 14);
• The proposed Joint Committee subscription for MOPAC of £15,410 for 2020/21, no change on the charge of £15,410 for 2019/20 (paragraph 15);
• An overall level of expenditure of £6.668 million for the Grants Scheme in 2020/21, a reduction of £241,000 on the total budget of £6.909 million for 2019/20; and
• Borough contributions for 2020/21 to fully cover the scheme of £6.668 million, the same level as for 2019/20 (paragraphs 16-18).
The Executive is also asked to recommend that the Leaders’ Committee endorse the following subscription and charges for 2020/21 for TEC, which will be considered by the TEC Executive Sub-Committee on 14 November, before being presented to the main meeting of TEC on 5 December for final approval:
• The Parking Core Administration Charge of £1,500 per borough and for TfL (2019/20 - £1,500) (paragraph 19);
• No charge to boroughs in respect of the Freedom Pass Administration Charge, which is covered by replacement Freedom Pass income (2019/20 – no charge) (paragraph 21);
• The net Taxicard Administration Charge to boroughs of £338,182 in total (2019/20 - £338,182); (paragraph 22);
• No charge to boroughs and TfL in respect of the Lorry Control Administration Charge, which is fully covered by estimated PCN income (2019/20 – no charge) (paragraph 23);
• The Parking Enforcement Service Charge of £0.3708 per PCN, which will be distributed to boroughs and TfL in accordance with the number of PCNs issued in 2018/19 (2019/20 - £0.3760 per PCN; paragraphs 26-27);
• The Parking and Traffic Appeals Charge of £27.35 per appeal or £23.63 per appeal where electronic evidence is provided by the enforcing authority (2019/20 - £28.75/£25.08 per appeal). For hearing Statutory Declarations, a charge of £21.78 for hard copy submissions and £21.04 for electronic submissions (2019/20 - £23.23/£22.50 per SD) (paragraphs 28-29);
• Congestion Charging Appeals including the ULEZ scheme – to be recovered on a full cost recovery basis, as for 2019/20, under the current contract arrangement with the GLA (paragraph 30);
• The TRACE (Electronic) Charge of £7.53 per transaction (2019/20 - £7.53) (paragraphs 31-33);
• The TRACE (Fax/Email) Charge of £7.70 per transaction, which is levied in addition to the electronic charge of £7.53 per transaction, making a total of £15.23 (2019/20 -   £15.23) (paragraphs 31-33); and
• The TEC Charge of £0.175 per transaction (2019/20 - £0.175) (paragraphs 31-33).
Based on the above proposed level of subscriptions and charges, the Executive is asked to recommend to the Leaders’ Committee:
• The provisional consolidated revenue expenditure budget for 2020/21 for London Councils of £383.171 million, as per Table 4 at paragraph 34 and Appendix A of this report;
• The provisional consolidated revenue income budget for 2020/21 for London Councils of £382.192 million, also as per Table 4 at paragraph 34 and Appendix B;
• Within the total income requirement, the use of London Councils reserves of £979,000 in 2020/21, as detailed in Table 11 at paragraph 53.
The Executive is also asked to recommend that the Leaders’ Committee note:
• The position in respect of forecast uncommitted London Councils reserves as at 31 March 2020, as detailed at paragraphs 51-57; and
• The positive statement on the adequacy of the residual London Councils reserves issued by the Director of Corporate Resources, as detailed in paragraphs 58-59.