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Part 4 - Budget and Policy Framework Procedure Rules

1. The framework for Cabinet Decisions

The Council will be responsible for the adoption of its budget and policy framework as set out in Article 4. Once a budget or a policy framework is in place, it will be the responsibility of the Cabinet to implement it.

2. Process for developing the Framework

1. The Cabinet will publicise by including in the forward plan published at the Council's offices a timetable for making proposals to the Council 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 overview and scrutiny committees will also be notified. The consultation period shall in each instance be not less than 8 weeks.
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 overview and scrutiny panel wishes to respond to the executive in that consultation process then it may do so. As the overview and scrutiny panels have responsibility for fixing their own work programme (subject to the co-ordinating committee), it is open to the overview and scrutiny panels 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 panel into account in drawing up firm proposals for submission to the Council, and its report to Council will reflect the comments made by consultees and the Cabinet's response.
3. Once the Cabinet has approved the firm proposals, the proper officer will refer them at the earliest opportunity to the Council for decision.
4. When considering firm proposals, if the Council has no objections it may amend, approve or adopt them (with or without modifications) and its decision will have immeadiate effect.
5. If the Council has any objections then (except in the case h. below) it must not amend, approve or adopt the proposals but must so inform the Leader and through him/her, instruct the Cabinet to reconsider the proposals in light of the objections made.

6. The Cabinet have a period of 5 working days from the receipt of the instruction by the Leader to -

   1. submit revised proposals to the Council for consideration including any reasons for any amendments made; or
   2. inform the Council of any disagreement with the objections raised and the reasons for any such disagreement.
7. When, following the expiry of the period allowed for the consideration of the objections by the Cabinet, the Council considers adopting, approving or amending the original or revised proposals it must take into account any matters raised by the Cabinet within the specified period.
8. Where the Cabinet recommends budgets or estimates required for the calculation of the Council Tax after 8th February then the Council may approve, amend or adopt the proposals without the need for the Cabinet to consider any objections raised. (In all cases the approval, adoption, amendment or modification of proposals or revised proposals or the determination of objections will be by way of simple majority votes taken at the relevant meeting). In approving the budget and policy framework, the Council may 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 adjustment). Any other changes to the policy and budgetary framework are reserved to the Council. If the Council is silent on this, the existing arrangement set out in the constitution will apply.

3. Decisions outside the budgetary and policy Framework

1. Subject to the provisions of paragraph 5 (virement) the Cabinet, individual members of the Cabinet and any officers, area committees or joint arrangements discharging Cabinet 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 full council, then that decision may only be taken by the Council, subject to 4 below.
2. If the Cabinet, individual members of the Cabinet and any officers, area committees or joint arrangements discharging executive functions want to make such a decision, they shall take advice from the monitoring officer and/or the chief financial 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 budgetary and policy framework

1. The Cabinet, a committee of the Cabinet, an individual member of the Cabinet or officers, area committees or joint arrangements discharging Cabinet 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:

   1. if it is not practical to convene a quorate meeting of the full Council; and
   2. if the chair of a relevant overview and scrutiny committee agrees that the decision is a matter of urgency. The reasons why it is not practical to convene a quorate meeting of full Council and the chair of the relevant overview and scrutiny panels' 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 relevant overview and scrutiny panel the consent of the chairman of the Council, and in the absence of both the vice-chairman, will be sufficient.
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

1. Virement ie the switching of budget provision between budget heads, within a Service Unit budget is permitted as set out below.

   1. on the authority of the Service Unit Manager up to £5,000 per request
   2. with the approval of Management Team up to £20,000 per request
   3. over £20,000 Executive approval must be obtained
   4. over £100,000 Full Council. These limits apply to both Revenue and Capital budgets.

2. All virement to and from staffing budget heads must be approved by Management Team.

3. Virement between the budgets of two or more Service Units is permitted subject to

   1. all requests up to £20,000 being approved by Management Team
   2. over £20,000 Executive approval must be obtained
   3. over £100,000 full Council.

4. All requests for virement must be made in writing to the Head of Financial Services, in the prescribed format.
5. In all cases it must be clearly stated whether the virement is permanent or temporary.
6. Generally, virement between General Fund and HRA is not permitted. Any proposed instance must first be approved by the Head of Financial Services.
7. Virement may only be used to fund policies approved by Members. Its availability does not permit officers to fund new activities unless Members have specifically approved those activities.
8. Virement from an income code to an expenditure code can only be authorised by Executive i.e. all income "belongs" to Executive and Members decide how it is to be spent and on what. Only once this decision has been taken may Officers incur the expenditure as approved by Members.

6. In-year changes to the policy framework

The responsibility for agreeing the budget and policy framework lies with the Council, and decisions by the Cabinet, an individual member of the Cabinet or officers, area committees 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:

1. which will result in the closure or discontinuance of a service or part of service to meet a budgetary constraint;
2. necessary to ensure compliance with the law, ministerial direction or government guidance;
3. 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.

7. Call-in of decisions made outside the budget or policy framework

1. Where an overview and scrutiny panel is of the opinion that the 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 Chief Financial Officer.
2. In respect of functions which are the responsibility of the Cabinet, the monitoring officer's report and/or chief financial 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 chief finance officer conclude that the decision was a departure, and to the overview and scrutiny panel if the monitoring officer or the chief finance officer conclude that the decision was not a departure.

3. 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 chief financial 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 overview and scrutiny panel 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. The Council shall meet within 20 working days of the request by the overview and scrutiny panel. At the meeting it will receive a report of the decision or proposals and the advice of the monitoring officer and/or the chief financial officer. The Council may either:

   1. 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
   2. amend the council's financial regulations or policy concerned to encompass the decision or proposal of the body or individual responsible for that Cabinet 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
   3. 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 to accommodate it, require the Cabinet to reconsider the matter in accordance with the advice of either the monitoring officer/chief financial officer.