Agenda item

This report sets out the Council’s budget proposals for 2022/23 and provides a general update on the Council’s overall financial position, including an assessment of the Chancellor of the Exchequer’s October 2021 Autumn Budget.  Subject to the results of consultation and scrutiny, these proposals will then form the basis of the budget to be agreed at the Full Council meeting in February 2022.

Cabinet noted the comments made by Councillor Kennelly who had requested to speak at the meeting on the draft budget item.  In addressing Cabinet, Councillor Kennelly whilst recognising the challenging nature of the budget position faced by the Council, was keen to highlight the importance in maintaining a focus on key infrastructure requirements, including maintenance of footways.  Highlighting the support expressed locally for the repairs and maintenance undertaken on footways in his ward he also outlined the wider importance of this in terms of supporting the Council’s objectives towards encouraging more active forms of travel and in tackling the Climate Emergency.  As a result he asked Cabinet to ensure that the consideration was given, as part of the budget proposals, to securing and maintaining the necessary levels of investment required to support the need for ongoing and future infrastructure investment, especially in relation to footways.

In responding to the comments raised, Councillor Butt (as Leader of the Council) highlighted the challenges needing to be addressed in securing the necessary funding to be able to support the key objectives identified as priorities by the Council, given the constraints on available funding.  The issue raised in relation to securing long term invest to support infrastructure, including footways had been recognised with discussions also being pursued with key stakeholders, including TfL.

Cabinet RESOLVED:

(1)     To note the Council’s overall financial position.

(2)     To endorse the budget proposals for 2022/23 that were previously agreed at the Council meeting of 22 February 2021, as set out in Appendix A of the report.

(3)     To agree to consult on a Council Tax increase of 3% in 2022/23.

(4)     To agree to participate in a sub London Business Rates Pool in 2022/23 and delegate authority to the Director of Finance to enter into a Memorandum of Understanding with the participating authorities as may be necessary to implement and/or regulate the pool.

(5)     To delegate authority to the Director of Finance to agree to participate in such pools in subsequent years (in consultation with the Lead Member) and to enter into Memorandum of Understandings in respect of any such subsequent pools.

(6)     To note the position with regard to the funding for Schools and the Dedicated Schools Grant, as set out in Section 7 of the report.

(7)     To consult on a rent increase of 4.1% (CPI + 1%) for the 2022/23 Housing Revenue Account budget, as set out in Section 8 and Appendix B of the report.

(8)     To note the position with regard to the Capital programme, as set out in Section 9 of the report.

Prior to consideration of this item, Councillor Muhammed Butt (Leader of the Council) welcomed Councillor Kennelly to the meeting who he advised had requested to speak in relation to the draft budget proposals.  In addressing Cabinet, Councillor Kennelly, whilst recognising the challenging nature of the budget position faced by the Council, was keen to highlight the importance in maintaining a focus on key infrastructure requirements, including maintenance of footways.  Highlighting the support expressed locally for the repairs and maintenance undertaken on footways in Preston ward he also outlined the wider importance of this in terms of supporting the Council’s objectives towards encouraging more active forms of travel and in tackling the Climate Emergency.  As a result he asked Cabinet to ensure that consideration was given, as part of the budget proposals, to securing and maintaining the necessary levels of resources required to support the need for ongoing and future infrastructure investment, especially in relation to footways.

In responding to the comments raised, Councillor Butt (Leader of the Council) highlighted the challenges needing to be addressed in securing the necessary resources to be able to support the key priorities identified by the Council, given the constraints on available funding.  The issue raised in relation to securing long term invest to support infrastructure, including footways had, however, been recognised with funding discussions also being pursued with key stakeholders, including TfL.

Having noted the response provided, Councillor McLennan was then invited to introduce the report, which set out the Council’s budget proposals for 2022/23.  The report also provided a general update on the Council’s overall financial position, including an assessment of the Chancellors Autumn budget statement.

In considering the report Cabinet noted that, given the final year of the current Administration, no new budget proposals were being recommended with the position for 2022/23 broadly in line with that estimated at the time of the last budget in February 2021 and subsequent monitoring updates.  The proposals within the report would enable the Council to set a balanced budget in 2022/23 with the key features being:

·                A proposed Council Tax increase of 3% for the Brent element with the GLA precept currently to be advised;

·                Ongoing delivery of the budget saving proposals (all of which had been considered by Council in February 2021) with an aggregate value of £2.7m as detailed within Appendix A of the report;

It was noted that whilst the Government’s Spending Review had announced an increase in core spending power this had been based on the assumption that Council’s would increase their Council Tax by the 3% maximum allowable without triggering a local referendum, with a majority of the additional funding linked to social care reforms.  Members also noted this followed a ten year period of significant reductions in Government funding which had required the Council to make £185m worth of savings despite an increase in demand for key services.

In addition, the report detailed the proposals for the Council to participate in a sub London mini Business Rates Pool with Members also noting the updates provided in relation to the current position on the Dedicated Schools Grant and ongoing pressures on the High Needs Block, along with the Housing Revenue Account (HRA).  In terms of the HRA, this included details on a proposed increase of 4.1% in average rent (based on CPI + 1%) which members noted had been required to take account of inflation led growth and continued investment in the Council’s Housing Stock.

In concluding her introduction, Councillor McLennan once again highlighted how challenging and difficult the process had been and thanked the Cabinet Members and officers for their support and efforts in developing the budget proposals.

In supporting the proposals contained within the report, Cabinet also noted the overview provided on the planned spending and financing of the Council’s Capital Programme from 2022/23 – 2026/2.  The ongoing challenges in relation to the Medium Term Financial Strategy were also noted given continued uncertainty around wider funding reforms, the continuing impacts of Brexit and Covid-19 on local residents and businesses across the borough.

In summing up, Councillor Muhammed Butt highlighted how the proposals, subject to their agreement following consultation, would deliver a balanced budget and ensure that the Council would continue to operate in a financially sustainable and resilient way in seeking to limit as far as possible the impact on front line services whilst also providing for growth in essential areas based on the core strategic priorities identified.

Having noted the current financial context in which the budget proposals had been developed it was RESOLVED that Cabinet:

(1)     Note the Council’s overall financial position.

(2)     Endorse the budget proposals for 2022/23 that were previously agreed at the Council meeting of 22 February 2021, as set out in Appendix A of the report.

(3)     Agree to consult on a Council Tax increase of 3% in 2022/23.

(4)     Agree to participate in a sub London Business Rates Pool in 2022/23 and delegate authority to the Director of Finance to enter into a Memorandum of Understanding with the participating authorities as may be necessary to implement and/or regulate the pool.

(5)     Delegate authority to the Director of Finance to agree to participate in such pools in subsequent years (in consultation with the Lead Member) and to enter into Memorandum of Understandings in respect of any such subsequent pools.

(6)     Note the position with regard to the funding for Schools and the Dedicated Schools Grant, as set out in Section 7 of the report.

(7)     Agree to consult on a rent increase of 4.1% (CPI + 1%) for the 2022/23 Housing Revenue Account budget, as set out in Section 8 and Appendix B of the report.

(8)     Note the position with regard to the Capital programme, as set out in Section 9 of the report.