Agenda item

This report sets out the Council’s budget proposals for 2022/23.  It also sets out the results of the consultation, scrutiny and equalities processes.  Subject to approval by Cabinet, these will form the basis of the budget to be agreed at the Full Council meeting of 24 February 2022.

The report also sets out the overall financial position facing the Council for the medium term and highlights the significant risks, issues and uncertainties.

NOTED the comments made by Councillor Ketan Sheth in summarising the key themes from the Budget Scrutiny Task Group report.  In introducing the report, Councillor Ketan Sheth highlighted that the Task Group in undertaking their review had recognised the challenging financial environment in which the Council was operating given the long term reduction in Government funding, level of savings already achieved, social and economic impact of the pandemic and increasing complexity of demand for Council services along with similar pressures on other statutory and voluntary and community sector support. 

In considering the second year of a two year budget phase, Councillor Ketan Sheth advised that the Task Group had undertaken extension consultation and engagement in order to seek evidence from a wide range of stakeholders with a number of areas scrutinised in depth.  These had includes the pressure within the Dedicated Schools Grant; the Covid Recovery programme; the impact of the pandemic on Adult Social Care, particularly in relation to mental health; the impact on health inequalities work once the Government grant had ended; the impact of the pandemic on business rates, Council Tax and HRA rent collection.  As a result the Task Group had made a number of recommendations, as detailed within section 2 of their report, which were commended to Cabinet for consideration and approval as part of the final budget decision making process.

Having noted the comments provided, and welcomed and supported the approach taken and recommendations made by the Budget Scrutiny Task Group, CabinetRESOLVED:

(1)        To recommend to full Council an overall 2.99% increase in the Council’s element of Council Tax for 2022/23, with 1% as a precept for Adult Social Care and a 1.99% general increase.

(2)        To recommend to full Council the General Fund revenue budget for 2022/23, as summarised in Appendices A & B of the report.

(3)        To recommend to full Council the savings proposals for 2022/23 as detailed in Appendix C of the report.

(4)        To note the report from the Budget Scrutiny Panel, as set out in Appendix D of the report.

(5)        To recommend to full Council the HRA budget for 2022/23, as set out in section 7 of the report.

(6)        To agree the HRA rents for council dwellings, tenant service charges and garages, as set out in section 7 of the report.

(7)        To agree the rents set under the Housing General Fund for Brent Housing PFI and traveller’s site pitches and to note the rents for Hillside dwellings as set out in section 7 of the report.

(8)        To note the Dedicated Schools Grant as set out in section 8 of the report.

(9)        To agree to recommend to full Council the changes to the existing Capital Programme in relation to additions of new schemes and reprofiling, as set out in section 10 and Appendix E of the report and to note the Capital Pipeline Schemes in Appendix F of the report

(10)    To agree to recommend to full Council the Capital Strategy, the Investment Strategy, the Treasury Management Strategy and the Minimum Revenue Provision Statement as set out in Appendices G, H, I and J of the report.

(11)    To agree to recommend to full Council the Reserves Strategy and schedule of reserves, as set out in Appendix K of the report.

(12)  To agree the action plan to implement CIPFA’s Financial Management Code, as set out in Appendix L of the report.

(13)  To agree, and where relevant agree to recommend to full Council, the schedule of fees and charges for 2022/23 as set out at in Appendix M of the report.

(14)  To note the results of the budget consultation as set out in section 6 and detailed in Appendix N of the report.

(15)  To note the advice of the Director of Legal, HR, Audit and Investigations as set out in Appendix O of the report.

To note and approve the specific recommendations identified for consideration by Full Council as detailed in section 2.16 – 2.35 of the report.

Prior to consideration of the main report Councillor Muhammed Butt (Leader of the Council) invited Councillor Ketan Sheth to introduce the key themes within the Budget Scrutiny Task Group report, which had been included as an appendix to the Budget and Council Tax 2022/23 report.  In introducing the report, Councillor Ketan Sheth highlighted that the Task Group in undertaking their review had recognised the challenging financial environment in which the Council was operating given the long term reduction in Government funding, level of savings already achieved by the Council, social and economic impact of the pandemic and increasing complexity of demand for Council services along with similar pressures on other statutory and voluntary and community sector support.

In considering the second year of a two year budget phase, Councillor Ketan Sheth advised that the Task Group had undertaken extension consultation and engagement in order to seek evidence from a wide range of stakeholders with a number of areas scrutinised in depth.  These had includes the pressure within the Dedicated Schools Grant; the Covid Recovery programme; the impact of the pandemic on Adult Social Care, particularly in relation to mental health; the impact on health inequalities work once Government grant funding had ceased; the impact of the pandemic on business rates, Council Tax and HRA rent collection.  As a result the Task Group had made a number of recommendations, as detailed within section 2 of their report, which were commended to Cabinet for consideration and approval as part of the final budget decision making process.

In summing up, Councillor Ketan Sheth thanked the members and officers who had been engaged in the review process. In response, Councillor McLennan expressed her own gratitude for the hard work of members and officers in producing the report and highlighted its importance to the overall budget setting process, especially given the detailed analysis undertaken in respect of the wider budget and funding implications on services.

Councillor McLennan, as Deputy Leader and Lead Member for Resources then introduced the report which set out the Council’s budget proposals for 2022/23. The report also set out the results of the budget consultation, scrutiny and equality processes and the overall financial position facing the Council for the medium-term.

Councillor McLennan began by taking the opportunity to thank all officers and members who had been involved in the budget setting process and reminded Cabinet that the proposals represented the final year in a two year budget phase based on a savings programme (agreed in February 2021) profiled over 2021/22 and 2022/23.  In focussing on the detail proposals, Councillor McLennan highlighted that aside from the usual updating and adjustments to various technical assumptions the key features within the budget for 2022/23 included:

·                a proposed Council Tax rise of 2.99% for the Brent element, which included a 1% ring fenced for Adult Social Care.  The proposed increase had been designed to reflect rising inflationary pressures on the Council, alongside the wider financial, funding and economic position and outcome of the budget consultation process and was felt to be the minimum required to ensure the Council was able to continue providing the level of services required given the ongoing nature of demand.  It was noted that the final level would also need to include the precept agreed by the Greater London Authority (GLA);

·                reconfirmation of the budget saving proposals (as originally agreed by Council in February 2021), as detailed in Appendix C(i) of the report with no new proposals having been identified for consideration on the basis this would deliver a balanced budget and was in the final year of the current Administration.

The report also provided a summary of the forecast position against the current (2021/22) revenue budgets as well as updates in relation to the capital programme and pipeline and ring fenced budgets including the Housing Revenue Account and Dedicated Schools Grant.  In summing up Councillor McLennan advised that the proposals as set out in the report and agreed under the original two year programme would enable the Council to set a balanced budget in 2022/23 in accordance with its statutory obligations and key objectives and priorities within the Borough Plan.  In addition to the proposals identified in the report, reference was also made to the recent government announcement regarding the introduction of a Council Tax Energy Rebate Scheme.  Whilst further detailed guidance was awaited on administration of the scheme, it was noted this would be considered separately to the Council Tax setting process.

In supporting the budget proposals, Councillor Tatler, Lead Member for Regeneration, Property and Planning thanked officers for their work in preparing the budget during such challenging times, along with the work of the Regeneration Team in relation to the development and delivery of the capital programme and pipeline (including the collection of s106 and CIL receipts). As specific examples of the impact of the various projects and schemes she referred to the Council’s continued support for affordable housing initiatives, town centres and local businesses as well as improvements in South Kilburn.

Councillor Stephens, Lead Member for Schools, Employment and Skills praised the budget proposals and in welcoming the inclusion of works to the buildings in Barham Park as part of the capital pipeline felt this demonstrated the Council’s commitment to supporting its residents.  He also highlighted the continued support within the budget for local schools and Special Educational Needs provision, with specific reference to inclusion of the capital investment programme for SEND provision which, despite the pressures on the Dedicated Schools Grant and High Needs Block, had been designed to increase local in borough provision by 50%.

Councillor Southwood, Lead Member for Housing and Welfare Reform, in supporting the budget proposals felt it important to recognise the ambitious nature of the ongoing New Council House Building programme and schemes within the capital pipeline combing together as a means of seeking to reduce the number of households within Temporary Accommodation and improve the overall quality and supply of affordable housing across the borough (including the support of private sector landlords).  Taken together Councillor Southwood highlighted how the proposals once again had been designed to support and protect the most vulnerable residents and thanked officers for their efforts.

Councillor Nerva, Lead Member for Public Health, Culture and Leisure also endorsed the budget proposals and thanked all officers for their work in building on the support and services being provided for local residents and communities in view of what he felt was an absence of a long term funding strategy for local government by the government given the significantly challenging financial position and constraints local authorities (including Brent) were having to work within.  He was pleased that despite ongoing budget pressures, the Council had continued to invest in libraries and culture but remained concerned at the governments approach towards funding for public health and had therefore particularly welcomed the focus of the Budget Scrutiny Task Group in relation to the impact on health inequalities work and support for continued lobbying to ensure a joined up approach and fair allocation of funding to level up the provision of local services in partnership with the NHS, including a focus on mental health.

Councillor Krupa Sheth, Lead Member for Environment expressed her gratitude for the hard work of the Environment Team over the past year despite the challenging circumstances brought about by the pandemic. A number of initiatives were highlighted, including the work to deliver the Covid Recovery Programme and enhance the allocation of resources across town centres along with the proposed level of investment included within the capital pipeline focussed on highways, public realm and parks.

Councillor Knight, Lead Member for Community Safety and Engagement also expressed her support for the budget proposals and thanked officers for their hard work in bringing them forward. She felt that the proposals mitigated against any perceived risks in terms of the work being undertaken by the Community Protection and Enforcement Teams and was pleased, given the ongoing importance of the work being undertaken in relation to community safety and anti-social behaviour, that no reductions had been proposed across key services areas which would enable key areas of support to continue being commissioned.

Councillor Farah, Lead Member for Adult Social Care, also expressed support for the budget proposals highlighting the challenging nature of the demand led spending pressures in relation to Adult Social Care and thanking all staff and carers in Brent for their efforts and support in the ongoing delivery of services for some of the most vulnerable residents in the borough.

In summing up, Councillor Muhammed Butt highlighted the challenging nature of the budget setting process given the ongoing impact of the pandemic and continued uncertainty in relation to central government’s funding of local authorities.  He felt it was important to recognise that members and officers had looked at every aspect of their services to ensure budgets could be managed whilst delivering key strategic priorities and protecting the most vulnerable residents in the borough with the budget proposals delivering a balanced and proportionate approach.  It was felt this had been made even more difficult given the difficulties in being able to forecast over the medium term as a result of the ongoing uncertainty over the Government’s funding reforms (on which lobbying continued) and the continued impact of the pandemic and BREXIT on residents and businesses.  Despite recognising the significance of the financial challenge, cumulative level of savings already delivered by the Council and that were likely to be required looking forward to 2023/24 and 2024/25 the measures outlined for 2022/23 had been designed to ensure the Council was able to operate in a financially sustainable and resilient way that would enable the Council to look forward and continue delivering key services and support.  In concluding, Councillor Muhammed Butt once again thanked members and officers for their hard work in preparing the budget and ensuring the best possible level of service was provided to residents over the forthcoming year.

Having noted the comments provided, and welcomed and supported the approach outlined within the report, Cabinet RESOLVED:

(1)      To recommend to full Council an overall 2.99% increase in the Council’s element of Council Tax for 2022/23, with 1% as a precept for Adult Social Care and a 1.99% general increase.

(2)      To recommend to full Council the General Fund revenue budget for 2022/23, as summarised in Appendices A & B of the report.

(3)      To recommend to full Council the savings proposals for 2022/23 as detailed in Appendix C of the report.

(4)      To note the report from the Budget Scrutiny Panel, as set out in Appendix D of the report.

(5)      To recommend to full Council the HRA budget for 2022/23, as set out in section 7 of the report.

(6)      To agree the HRA rents for council dwellings, tenant service charges and garages, as set out in section 7 of the report.

(7)      To agree the rents set under the Housing General Fund for Brent Housing PFI and traveller’s site pitches and to note the rents for Hillside dwellings as set out in section 7 of the report.

(8)      To note the Dedicated Schools Grant as set out in section 8 of the report.

(9)      To agree to recommend to full Council the changes to the existing Capital Programme in relation to additions of new schemes and reprofiling, as set out in section 10 and Appendix E of the report and to note the Capital Pipeline Schemes in Appendix F of the report

(10)    To agree to recommend to full Council the Capital Strategy, the Investment Strategy, the Treasury Management Strategy and the Minimum Revenue Provision Statement as set out in Appendices G, H, I and J of the report.

(11)   To agree to recommend to full Council the Reserves Strategy and schedule of reserves, as set out in Appendix K of the report.

(12)   To agree the action plan to implement CIPFA’s Financial Management Code, as set out in Appendix L of the report.

(13)   To agree, and where relevant agree to recommend to full Council, the schedule of fees and charges for 2022/23 as set out at in Appendix M of the report.

(14)   To note the results of the budget consultation as set out in section 6 and detailed in Appendix N of the report.

(15)   To note the advice of the Director of Legal, HR, Audit and Investigations as set out in Appendix O of the report.

(16)   To note and approve the specific recommendations identified for consideration by Full Council as detailed in section 2.16 – 2.35 of the report.