Issue - meetings

The purpose of this report is to set out the Council’s budget proposals for 2025/26. It also provides a general update on the Council’s overall financial position, including an overview of the current economic outlook.

Cabinet RESOLVED:

(1)        To note the overall financial position.

(2)        To agree to consult on the new budget proposals, as set out in Appendices A and B of the report.

(3)        To agree to consult on a Council Tax increase of 4.99% (consisting of a 2.99% general increase plus 2% for the Adult Social Care Precept) in 2025/26.

(4)        To endorse the approach to the statutory process of consultation, scrutiny and equalities between November 2024 and February 2025, as set out in section ten of the report.

(5)        To endorse the changes to the technical budget assumptions underpinning the budget, as set out in section six and seven of the report.

(6)        To note the position with regard to the funding for Schools and the Dedicated Schools Grant, as set out in section eleven of the report.

(7)        To note the position with regard to the Housing Revenue Account, as set out in section twelve of the report.

(8)        To note the position with regard to the Capital programme, as set out in section thirteen of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Tuesday 19 November 2024

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance & Resources) introduced a report which set out the Council’s budget proposals for 2025-26.  The report also provided a general update on the Council’s overall financial position, including not only the Council’s General Fund revenue budget but also Housing Revenue Account, Dedicated Schools Grant and Capital Programme as well as an overview of the current economic outlook.

In introducing the report, Councillor Mili Patel began by thanking officers involved for their efforts in preparing the draft budget proposals with the detail provided reflecting the Council’s ongoing commitment to undertaking the budget setting and consultation process as transparently as possible involving key stakeholders such as local residents, business and other key stakeholders including the scrutiny function.  Despite the considerable efforts to maintain financial control, the operating environment and wider economic context faced by the Council remained volatile.  Since 2010, members were reminded that the Council had lost at least £222m from its core budget with the impact having been felt by everyone who lived and worked in the borough.  Whilst recognising the efforts made to innovate, identify efficiencies and generate income members were advised these measures alone would no longer be sufficient over the longer term with the need identified, as a result, to deliver £16m worth of cuts during 2025-26 in order for the Council to be able to continue standing still with the challenging nature of these additional cuts fully acknowledged for residents, staff and members alike.  Without intervention, however, members were advised the risk of being able to move back to financial sustainability would become more difficult.

In highlighting how local authorities such as Brent were not alone in facing these challenges, with 18 Council’s having to apply to the Government for Exceptional Financial Support and 1 in 4 identified as likely to require emergency support over the next two years, members also noted how the sector had also become the government’s emergency provider of last resort delivering more services than ever before. This had involved picking up the challenges and costs in relation to areas such as children and adult social care and the housing crisis, making it increasingly difficult to explain to local residents how the financial burden in relation to Council Tax had been shifted to cover these pressures.

Whilst the government had now changed, and Chancellor’s Autum Statement had outlined a range of measures aimed at fixing the foundation of the economy and delivering a renewed focus on public services the challenges and pressures facing the Council remained the same and, it was highlighted, would now require a fundamental shift in approach given the ongoing impact of austerity.  Highlighting the savings proposals identified for 2025-26 within Appendix A & B of the report alongside the updated budget assumptions and proposal to seek (at this stage) a Council Tax increase of 4.99% (based on a 2.99% general increase plus 2% for the Adult Social Care precept) which had been designed to enable the Council to set a  ...  view the full minutes text for item 7