1.0 The framework for Cabinet decisions
The Council is responsible for the adoption of its policy framework and budget. Once a budget or a policy framework is in place, it is the responsibility of the cabinet to implement it. Any change to the Policy Framework and Budget can only be agreed by Council unless it relates to:
- virement or additional expenditure within the limits set by the Council
- in-year policy adjustments within the limits set by the Council
2.0 Process for developing the budget and plans/strategies which form part of the policy framework
(a) Any proposals that will result in minor amendments or additions to the policy framework which will have little or no effect on the community may be submitted to Cabinet for recommendation to Council without being subject to the following procedures.
(b) The process by which the budget, new plans or strategies, additions to existing plans or strategies, or amendments to existing plans and strategies forming or intended to form part of the policy framework shall be developed is:
(i) A report will be submitted to the Cabinet which contains:
- Initial proposals for the plan or strategy.
- A proposed timetable for submission of the plan/strategy to full Council.
- A proposed consultation process (which will be a minimum of 6 weeks in duration).
(ii) The timetable for the submission of the proposed plan/strategy to full Council and the consultation arrangements, once agreed by Cabinet, will then be advertised in the forward plan.
(iii) Following (i) and (ii) above, the consultation will be undertaken and the chairs of the Policy Development Panel and the Performance Monitoring Panel will also be notified. If either the Policy Development Panel or the Performance Monitoring Panel wishes to respond to the Cabinet in that consultation process then it may do so. As the panels have responsibility for fixing their own work programmes, it is open to the Panels to investigate, research or report in detail with policy recommendations before the end of the consultation period.
(c) At the end of the consultation period, the Cabinet will then draw up firm proposals for submission to full Council. The Cabinet will take any response from either the Policy Development Panel or the Performance Monitoring Panel into account in drawing up those firm proposals for submission to the Council, and its report to Council will reflect the comments made by consultees and the Cabinet's response.
(d) Where the Cabinet has submitted firm proposals to the Council and the Council has no objections and wishes to make no modifications or amendments then the plan/strategy may be implemented or submitted to the Secretary of State or any Minister of the Crown for approval immediately.
(e) Where the Cabinet has submitted firm proposals to the Council, and the Council has any objections then before the Council:
(i) amends the firm proposals;
(ii) approves, for the purpose of its submission to the Secretary of State or any Minister of the Crown for his approval, any plan or strategy (whether or not in the form of a draft) of which any part is required to be so submitted; or
(iii) adopts (with or without modification) the plan or strategy,
it must inform the Cabinet leader of those objections and require the Cabinet to reconsider the firm proposals, in the light of those objections.
(f) Where the Council gives instructions in accordance with paragraph (e) it must specify a reasonable period within which the Cabinet may be convened, and this period must not be less than five working days beginning on the day after the date on which the Cabinet leader receives the instructions on behalf of the Cabinet within which the Cabinet leader may:
(i) submit to the council revised firm proposals together with the Cabinet's reasons for any revisions
(ii) inform the Council of any disagreement that the Cabinet has with any of the Council's objections and the Cabinet's reasons for any such disagreement.
(g) The Council must, when:
(i) amending the proposals or revised proposals;
(ii) approving, for the purpose of its submission to the Secretary of State or any Minister of the Crown for his approval, any proposals (whether or not in the form of a draft or revised draft) of which any part is required to be so submitted; or
(iii) adopting (with or without modification) the proposals,
take into account any revisions, the Cabinet's views and reasons for any revisions, any disagreement that the Cabinet has with any of the Council's objections and the Cabinet's reasons for that disagreement before making a decision. The plan/strategy may then be implemented or submitted to the Secretary of State or any Minister of the Crown for approval.
3.0 Process for Cabinet consideration and submission to Council
(a) Subject to paragraph (e) below (exceptions relating to capping), where, before 8 February in any financial year, the Cabinet submits to the Council for its consideration in relation to the following financial year:
(i) estimates of the amounts to be aggregated in making a calculation (whether originally or by way of substitute) in accordance with any of sections 32 to 37 or 43 to 49, of the Local Government Finance Act 1992 (calculation of budget requirement, basic Council Tax, special expenses, council tax bands and precepting calculations);
(ii) estimates of other amounts to be used for the purposes of such a calculation;
(iii) estimates of such a calculation; or
(iv) amounts required to be stated in a precept under Chapter IV of Part I of the Local Government Finance Act 1992,
and following consideration of those estimates or amounts the Council has any objections to them, it must take the action set out in paragraph (b).
(b) Before the Council makes a calculation (whether originally or by way of substitute) in accordance with any of the sections referred to in paragraph (a)(i), or issues a precept under Chapter IV of Part I of the Local Government Finance Act 1992, it must inform the leader of any objections which it has to the Cabinet's estimates or amounts and must give to him their instructions requiring the Cabinet to reconsider, in the light of those objections, those estimates and amounts in accordance with the authority's requirements.
(c) Where the Council gives instructions in accordance with paragraph (b), it must specify a period of at least five working days beginning on the day after the date on which the leader receives the instructions on behalf of the Cabinet within which the leader may:
(i) submit a revision of the estimates or amounts as amended by the Cabinet ("revised estimates or amounts"), which have been reconsidered in accordance with the Council's requirements, with the Cabinet's reasons for any amendments made to the estimates or amounts, to the Council for consideration; or
(ii) inform the Council of any disagreement that the Cabinet has with any of the Council's
objections and the Cabinet's reasons for any such disagreement.
(d) When the period specified by the authority, referred to in paragraph (c), has expired, the authority must, when making calculations (whether originally or by way of substitute) in accordance with the sections referred to in paragraph (a)(i), or issuing a precept under Chapter IV of Part I of the Local Government Finance Act 1992, take into account:
(i) any amendments to the estimates or amounts that are included in any revised estimates or amounts;
(ii) the Cabinet's reasons for those amendments;
(iii) any disagreement that the Cabinet has with any of the Council's objections; and
(iv) the Cabinet's reasons for that disagreement,
which the leader submitted to the Council, or informed the Council of, within the period specified.
(e) Paragraphs (a) to (d) shall not apply in relation to:
(i) calculations or substitute calculations which an authority is required to make in accordance with section 52I, 52J, 52T or 52U of the Local Government Finance Act 1992 (an Order issued by the Secretary of State designating or nominating an authority with an excessive budget); and
(ii) amounts stated in a precept issued to give effect to calculations or substitute calculations made in accordance with section 52J or 52U or that Act.
4.0 Virements, additional expenditure, and in year adjustments to policy framework
(a) In approving the Policy Framework and Budget, the Council will also specify the extent of virement within the budget, limits on additional expenditure, and degree of in-year changes to the policy framework which may be undertaken by the Cabinet and/or Committees of the Cabinet and/or portfolio holders and/or officers and/or joint arrangements in accordance with paragraphs 4(b) and 4(c) below. Any other changes to the policy and budgetary framework are reserved to the Council.
(b) Steps taken by the Cabinet, a committee of the Cabinet, portfolio holder or officers, or joint arrangements discharging executive functions to implement Council policy shall not exceed those budgets allocated to each budget head in accordance with the virement rules (which include reference to additional expenditure) set out in Appendix 1 to the Financial Regulations in Part 4, Section 6 of this Constitution.
(c) The responsibility for agreeing the Policy Framework and Budget lies with the Council, and decisions by the Cabinet, a committee of the Cabinet an individual member of the Cabinet or officers, or joint arrangements discharging Cabinet 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:
(i) which will result in the closure or discontinuance of a service or part of service to meet a budgetary constraint; or
(ii) that are necessary to ensure compliance with the law, ministerial direction or government guidance.
Following the decision, a full report shall be submitted to the next available Council meeting explaining the decision and the reasons for it.
5.0 Decisions outside the budget or policy framework
(a) Subject to the provisions of Rule 4 above (Virement, additional expenditure and in-year policy adjustments) and Rule 6 below (urgent decisions) the Cabinet, committees of the Cabinet, individual portfolio holders and any officers, or joint arrangements discharging executive functions may only take decisions which are in line with the Policy Framework and Budget.
(b) If the Cabinet, a committee of the Cabinet, individual portfolio holder or any officer, or joint arrangements discharging executive functions wants to make a decision, but is unsure whether the proposed decision is contrary to the policy framework or contrary to or not wholly in accordance with the budget they shall take advice from the monitoring officer and/or the chief finance officer. If the advice of either of those officers is that the proposed decision would not be in line with the existing budget and/or policy framework, then that body or person may either (i) make an alternative decision which is in accordance with the policy framework/budget; or (ii) make a recommendation to Council (see Overview and Scrutiny Procedure Rule 15(a)); or (iii) make no decision but instead require the proper officer to submit the matter to Council for decision EXCEPT THAT a decision which is contrary to the policy framework or contrary to or not wholly in accordance with the budget may be made as a matter of urgency, under Rule 6 below (urgent decisions outside the Policy Framework and Budget).
(c) If the Chairman, or in his/her absence, the Vice-Chairman of the Policy Development Panel or the Performance Monitoring Panel is of the opinion that a decision taken by the Cabinet, a Committee of the Cabinet, an individual portfolio holder, any officer or joint arrangements discharging executive functions is contrary to the policy framework or contrary to or not wholly in accordance with the budget and the decision has not been taken under Rule 6 below then Rule 7 below shall apply.
6.0 Urgent decisions outside the budget or policy framework
(For the avoidance of doubt decisions taken under this Rule are not executive decisions because they are decisions which would normally be taken only by full Council. In view of this there is no requirement for any such decisions to be included within the forward plan.)
(a) The Cabinet, a committee of the Cabinet, an individual portfolio holder or officers, or joint arrangements discharging executive functions may take a decision which is contrary to the Council's policy framework or contrary to or not wholly in accordance with the budget approved by full Council 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 full Council to make the decision; and
(ii) if the chairman of the Performance Monitoring Panel agrees both that the decision is reasonable and is urgent.
The reasons why it is not practical to convene a quorate meeting of full Council and the chairman of the Panel's consent to the decision must be noted on the record of the decision and on the notice by which it is made public. In the absence of the chairman of the Panel the consent of the chairman of the Council, and in the absence of both the vice-chairman of the Council, will be sufficient.
(b) Following the decision, a full report shall be submitted to the next available Council meeting explaining the decision, the reasons for it and why the decision was treated as a matter of urgency.
7.0 Scrutiny of decisions outside the budget or policy framework
Where the Chairman or in his absence the vice-chairman of the Policy Development Panel or Performance Monitoring Panel is of the opinion that a decision of the Cabinet, a Committee of the Cabinet, an individual portfolio holder, under joint arrangements or an officer key decision has been made, contrary to the policy framework, or contrary to or not wholly in accordance with the Council's budget, then the following procedures are available:
(a) Decisions - still within 5 day call-in period
Where a decision is still within the 5 day call-in period, arrangements under Rule 15 of the Overview and Scrutiny Procedure Rules apply.
(b) Decisions outside 5 day call-in period
(i) Where a decision has already been implemented, the chairman of the Policy Development Panel or Performance Monitoring Panel, or in his/her absence the vice chairman, may require the Monitoring Officer or the Chief Finance Officer to prepare a report for submission to the next appropriate meeting of Cabinet with a copy to all members of the Council.
Where the report to Cabinet concludes that:
- the decision was not outside the Budget or Policy Framework, then the Cabinet will report this fact to the chairman or vice chairman of the relevant panel.
- the decision was outside the Budget or Policy Framework, then the Cabinet will report this fact, together with any proposals, to the next appropriate Council meeting.
(ii) Where a decision has been made but has not been implemented but the 5 day call-in period has expired, the chairman of the Policy Development or Performance Monitoring Panel or in his/her absence the vice-chairman may require the Monitoring Officer or the Chief Finance Officer to prepare a report for submission to the next appropriate meeting of Cabinet with a copy to all members of the Council.
Where the report to Cabinet concludes that:
- the decision was not outside the Budget or Policy Framework, then the Cabinet will report this fact to the chairman or vice chairman of the relevant panel.
- the decision was outside the Budget or Policy Framework, then the Cabinet will report this fact, together with any proposals, to the next appropriate Council meeting.
The decision may not be implemented until the matter has been considered by full Council. The Council may:
- approve an appropriate amendment to the Budget or Policy Framework to enable the decision to be implemented, in which case the decision will take effect on the date of the Council meeting.
- refuse to amend the Budget or Policy Framework and refer the matter back to the decision making body or person together with its views on the decision.
- approve an alternative amendment to the Budget or Policy Framework and refer the matter back to the decision making body or person for reconsideration together with its views on the decision.
