MD2619 GLA budget for 2020-21

Type of decision: 
Mayoral decision
Code: 
MD2619
Date signed: 
10 March 2020
Decision by: 
Sadiq Khan, Mayor of London

Executive summary

Following the budget setting exercise in the period from summer 2019 to February 2020, the detailed Greater London Authority (GLA) budget for 2020-21 is now ready for approval. This budget includes revenue, capital and reserves movements, although not the revenue budget of the London Assembly which is approved by the Assembly themselves. The budget will take effect from the start of the financial year on 1 April 2020 and run until 31 March 2021. The 2020-21 budget reflects the forecast 2019-20 outturn position at quarter three 2019-20.

This budget presents a net revenue expenditure for GLA in 2020-21 of £525.2 million. This includes the first full year of Adult Education Budget funding from the Government (£314 million) and GLA funded growth in 2020-21 of £21.5 million. This growth will be allocated to various priorities, including a Green New Deal and the Young Londoners Fund.

Decision

That the Mayor approves the GLA budget for 2020-21 as set out in the Appendix to this decision.

Part 1: Non-confidential facts and advice

Introduction and background

Following the budget setting exercise in the period from summer 2019 to February 2020, the detailed Greater London Authority (GLA) budget for 2020-21 has been agreed and is now ready for approval. This budget includes revenue, capital and reserves movements. It will take effect from the start of the financial year on 1 April 2020 and run until 31 March 2021. The 2020-21 budget reflects the position at quarter three 2019-20.

This budget presents a net revenue expenditure for GLA in 2020-21 of £525.2 million. This includes GLA funded growth in 2020-21 of £21.5 million. This growth will be allocated to various priorities, including: a Green New Deal; the Young Londoners Fund, skills, social integration, economic development, education and youth, and health.

The budget is set out as presented during the budget setting process, with updates where necessary or appropriate, particularly those arising from:

• The reorganisation of the GLA’s directorate structure which took effect from January 2020;
• Government confirmation of funding for the Adult Education Budget (£314 million in 2020-21 and £318 million per year thereafter);
• Reprofiling of some expenditure between years, as approved and presented in the quarter three corporate pack.

The presentation of directorate revenue budgets decouples base budget, one off budget, budget reprofiled from previous years, and from externally funded expenditure.

Objectives and expected outcomes

The budget sets out the financial envelope for the GLA’s operations in 2020-21. The budget will be deployed to meet the Mayor’s priorities for the GLA. The Appendix describes in detail the objectives and outcomes that will be delivered.

The capital strategy sets out detailed spending plans from 2020-21 to 2023-24 along with aspirations and plans to implement the Mayor’s policies over the longer term to 2038-39.

The budget also sets out detailed information on the GLA’s staffing establishment.

Equality comments

The assessment of equalities impacts is set out in details in the Appendix. Pursuant to the general public sector equality duty in section 149 of the Equality Act 2010, the Mayor is under a statutory obligation to have due regard to the equalities impacts when making this decision. In summary, those subject to the general equality duty must have due regard to the need to:

• Eliminate unlawful discrimination, harassment and victimisation and other conduct prohibited by the Act.
• Advance equality of opportunity between people who share a protected characteristic and those who do not.
• Foster good relations between people who share a protected characteristic and those who do not.

Equalities impacts should continue to be considered when individual programmes and project specifications are developed and approved through the Authority’s decision-making processes.

Other considerations

A detailed assessment of the budget’s environmental impact is also set out in the Appendix.

The budget setting process has been conducted in accordance with the statutory requirements in the GLA Act 1999.

Financial comments

Financial issues are integral to this decision and are presented in detail in the Appendix. There are risks and uncertainties inherent in programmes reliant on government/external funding and government policy on council tax and business rates in the medium term. The budget development, consultation and approval process has arrived at reserve provisions which are judged to be reasonable, necessary and prudent. This will be kept under review.

Planned delivery approach and next steps

The budget will come into effect at the start of the next financial year on 1 April 2020.


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