Issue - meetings

This report sets out the financial forecast for the General Fund revenue budget, the Housing Revenue Account, the Dedicated Schools Grant and the Capital Programme, as at Quarter 3 2024-25.

Cabinet RESOLVED:

(1)        To note the new grant funding received in year, the overall financial position and the actions being taken to manage the issues arising as detailed within the Q3 Financial Forecast.

(2)        To note progress on the savings delivery tracker, as detailed in Appendix A of the report.

(3)    To note the prudential indicators for treasury management, as detailed in in Appendix B of the report.

(4)        To approve the virements set out in section 4.7.13 of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Wednesday 22 January 2025

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance & Resources) introduced a report which set out the financial forecast for the General Fund revenue budget, the Housing Revenue Account, the Dedicated Schools Grant and the Capital Programme as at Quarter 3 2024-25.

In introducing the report, Councillor Mili Patel highlighted that the current forecast would be the final update on the Council’s financial position in advance of the 2025-26 budget proposals being presented for consideration in February, highlighting that once again, despite the considerable efforts to maintain financial control, the operating environment and wider economic context faced by the Council remained challenging.  In seeking to prioritise key statutory services the ongoing impact of austerity was again highlighted and whilst welcoming the new Government’s promise of future multi-year funding settlements the need for this to be accompanied by urgent wide ranging reform of Local Government Funding arrangements was also highlighted.

In outlining the challenging financial conditions faced by the Council and 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 latest forecast predicting an overspend of £17.4m in the General Fund budget.  Whilst officers, in seeking to address the pressures identified, had identified in-year savings of £8m members were advised that the potential need to drawn down from unallocated reserves therefore remained a concern especially given the ongoing levels of demand and revenue pressures in relation to Housing Needs.

In focussing on these pressures, members noted that the Housing Needs Service in Brent had experienced a 12% increase in the number of homelessness presentations, with Council’s across London now spending £4m a day in seeking to address the crisis, and solutions to tackle the scale of the housing emergency becoming increasingly limited.  As a result, the government was being urged to increase the funding available to local authorities to cope with the loss in Housing Benefit subsidy to ensure the Local Housing Allowance was truly reflective of the cost of living in London.

Whilst recognising the financial pressures and surge in demand faced by the Council, members also noted the positive outcomes which had been achieved including the delivery of a £1.7m underspend within Neighbourhoods and Regeneration and the contribution through the i4B initiative in generating (on a self-financing basis) annual savings exceeding £4m in terms of cost avoidance relating to Temporary Accommodation costs, with additional proactive efforts in homelessness prevention and relief having also yielded positive results.

Recognising the extent of the significant challenges identified in seeking to manage demand and address the pressures identified, the transparent assessment of the Council’s current position was welcomed, with the need for continued financial discipline and careful stewardship highlighted in order to sustain and ensure the Council’s financial sustainability.

In considering the report, Cabinet noted the specific updates provided by members in relation to the following areas:

·             Children and Young People (CYP) with members advised that the current forecast overspend of £1.3m reflected  ...  view the full minutes text for item 8