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 2025-26.

Cabinet RESOLVED:

(1)       To note the overall financial position and the actions being taken to manage the issues arising, as detailed within the report.

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

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

(4)    To approve the virements, as detailed in section 9.19 of the report.

(5)    To approve the amendments to the capital budget as set out in paragraphs 12.2 -12.4 of the report.

(6)    To delegate authority to the Corporate Director of Neighbourhoods and Regeneration to allocate the Pride in Place Impact Fund budget to specific projects in line with the thematic areas linked to the Borough Plan, as set out in paragraph 12.3 of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 26 January 2026

Councillor Mili Patel (as Deputy Leader and Cabinet Member for Finance & Resources) introduced a report from the Corporate Director Finance & Resources detailing the financial forecast for the General Fund revenue budget, Housing Revenue Account, Dedicated Schools Grant and the Capital Programme as at Quarter 3 2025-26.

In presenting the report, Councillor Mili Patel, highlighted that despite the considerable efforts being made to manage the budget, the operating environment and wider economic and social context faced by the Council remained challenging with the latest forecast position reflecting the scale of the financial challenge and difficult context in which decisions continued to be taken. In recognising the tough financial conditions faced by many councils across the country, the specific challenges arising from the sustained pressure needing to be managed in terms of rising demand, high inflation, elevated interest rates and increasing complexity in delivery of Brent’s statutory services were highlighted with it reported the General Fund was now forecasting an overspend of £12.5m.  In terms of the most significant pressures, members were advised these continued to be focussed around housing and temporary accommodation, Adult Social Care, and Children and Young People’s Services with temporary accommodation costs continuing to rise as demand increased, and housing supply remained constrained and Adult Social Care and Children’s Services experiencing higher than anticipated volumes and complexity alongside significant increases in placement and care package costs, with and the operating environment as a result continuing to remain volatile.

Despite the challenging financial conditions outlined it was, however, also felt important to recognise the Council’s continued financial resilience, careful management and collective discipline, with spending controls remaining in place and further strengthened during the year accompanied by the introduction of enhanced assurance, vacancy management and tighter controls on non-essential spend, which had helped to stabilise the in-year position and avoid more severe outcomes, at a time when a growing number of councils nationally were requiring exceptional financial support.

Whilst acknowledging the challenges identified, members were also reminded that the Council continued to seek opportunities to support the development of services.  As an example, reference was made to the £326m for new regeneration and infrastructure projects designed to improve outcomes for residents alongside the addition of almost 900 new homes to the Council’s portfolio, helping to reduce the reliance on expensive temporary accommodation whilst also delivering safe and secure housing for families.  Members were also reminded of the £1.5m secured through the Pride in Place Impact Fund that would support the Council in continuing to make tangible improvements to the borough’s high streets and public spaces, showing residents that despite the challenges identified investment in the priorities being identified in relation to neighbourhood, cleaner streets, safer parks and thriving town centres could still be delivered on the basis of strong financial discipline remaining the foundation for ongoing progress.

Overall, it was felt the financially sustainable approach outlined demonstrated the seriousness in which the Council took its responsibilities in seeking to address immediate pressures whilst also planning for the future, with  ...  view the full minutes text for item 8