Agenda item

This report sets out the Council’s budget proposals for 2023/24.  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 on 23 February 2023.

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

Cabinet NOTED the following comments made in advance of considering the main report on the Budget & Council Tax 2023-24:

1.         Councillor Afzal, providing the economic context in which the budget had needed to be developed recognising the impact of a decade of austerity and the detrimental effect on the poorest in society.  As a result, he highlighted the importance in the engagement and consultation process which had been undertaken in seeking to finalise the budget proposals for consideration.

2.         The written representations submitted by Councillor Kennelly, highlighting:

·            Support for the budget proposals given their focus in seeking to protect the most vulnerable against the rising costs of living.

·            The challenging nature of the decisions forced upon the Council as a result of the stance taken and measures introduced by central government, whilst recognising the positive initiatives and support which the budget proposals had been designed to continue supporting such as the Resident Support Fund and strategic goals such as reducing carbon emissions and tackling the climate emergency.

·            The regressive nature of Council Tax as a means of ensuring (particularly as a result of rising costs and demand in relation to adult social care and children’s services) the Council was able to continue supporting and protecting the most vulnerable in society.

3.          Councillor Georgiou who, whilst outlining the regressive nature of Council Tax, also expressed concern at the fairness of the proposed increase in Council Tax given the impact on local residents, particularly those living within Alperton and the surrounding area.  Whilst recognising the macroeconomic context since 2008 and impact of austerity, stemming from the financial crash in 2008 on local government finances, compounded by Brexit and recent central government interventions, concerns were raised about the increases in Council Tax given the reduction in services locally.  Concerns were also highlighted in relation to the impact of the Mayor for London’s precept and change in Government policy to move responsibility for funding Adult Social Care to local authorities, again through Council Tax. Given the concerns expressed Councillor Georgiou felt there was a need for the Council to ensure that funding collected locally was refocussed and prioritised on the local areas of improvement including:

·            The state of roads and pavements – with a call for additional capital investment.

·            Street Cleansing – with concerns highlighted in relation to the new intelligence-led approach to street cleaning.

·            Investment in young people – with concerns highlighted regarding the reduction in funding over the last decade and impact on the most underprivileged young people. The Council were called upon to deliver a new Youth Offer that would dedicate funding to youth services in Brent.

4.         Councillor Conneely, as Chair of the Resources and Public Realm Scrutiny Committee and Budget Scrutiny Task Group,  summarising the main recommendations from the Task Group in relation to the budget process. In introducing the report, Councillor Conneely 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, current economic challenges and increasing complexity of demand for Council services.  Taking these issues into account the Budget Scrutiny Task Group had been impressed with the Council’s attempts to focus investment on the most vulnerable, particularly in relation to the Resident and Council Tax Support Fund and in seeking to address housing demand and reduce the use of temporary accommodation.  Highlighting the recommendations made as a result of their review, the Task Group had:

·            Been keen to ensure that the budget proposals were clearly presented with clarity provided regarding cuts and investment proposals.

·            Emphasised the importance of ensuring a holistic approach to residents care including ensuing that an effective collaborative mechanism was established between the Council, NHS and other relevant stakeholders to agree patient discharge/step down plans and to leverage sufficient financial contributions from the NHS and other stakeholders to improve the Health and Social Care function in Brent in order to avoid the main cost burden falling on the Council. 

·            Supported the need to seek additional funding in order to support Brent Schools through the Dedicated Schools Grant

·            Supported the need for additional investment in highways infrastructure and to further explore the development of income generation opportunities as a means of supporting strategic priorities.

·            Recognised the importance of the ongoing support for the Council Tax Support Scheme, given the support being provided for those most vulnerable in society and lack of alternative viable options to raising Council Tax as a means of addressing the current financial pressures and challenges on the Council.

In concluding, Councillor Conneely advised that the Task Group had also been keen to ensure the budget proposals clearly set out how the spending proposals were aligned with agreed strategic priorities for the borough and to support the need for continuing lobbying for Local Government funding reforms, including the regressive nature of Council Tax. On this basis the recommendations made by the Budget Scrutiny Task Group were commended to Cabinet for consideration as part of the budget setting process.

Having noted the comments provided, and welcoming and supporting the approach taken and recommendations made by the Budget Scrutiny Task Group, Cabinet RESOLVED:

1)             To agree to recommend to Full Council an overall 4.99% increase in the Council’s element of Council Tax for 2023/24, with 2% as a precept for Adult Social Care and a 2.99% general increase.

2)             To agree to recommend to Full Council the General Fund revenue budget for 2023/24, as summarised in Appendices A and B of the report.

3)             To agree to recommend to Full Council the savings proposals for 2023/24 and deferral of savings to 2024/25 as set out in Appendix C (i) of the report.

4)             To note the report from the Budget Scrutiny Task Group in Appendix D of the report.

5)             To agree to recommend to Full Council the HRA budget for 2023/24 and business plan, as set out in section seven and Appendix Q of the report.

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

8)             To note the Dedicated Schools Grant, as set out in section eight 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 of the report and Appendix E, and note the Capital Pipeline Schemes in Appendix F.

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 and conduct a Financial Resilience Assessment, 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 2023/24, as set out in Appendix M report.

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

15)         To note the advice of the Corporate Director of Governance, as set out in Appendix O of the report.

16)         To note the decision of the Corporate Director of Finance and Resources to continue as part of the Eight Authority Business Rates pool in 2023/24 as set out in Section five of the report.

To also note and approve the specific recommendations identified for consideration by Full Council as detailed in section 2.17 – 2.36 of the report.

Prior to consideration of the main report, Councillor Muhammed Butt (Leader of the Council) advised that he had agreed to a number of requests from councillors to speak in relation to the budget report and proposals, with the comments received as follows.

As the first speaker, Councillor Afzal began by highlighting the need to recognise the challenging economic context in which the budget had been developed, with specific reference to the cumulative detrimental impacts arising from a decade of Government austerity affecting the poorest in society.  As a result, he highlighted the importance in the engagement and consultation process which had been undertaken in seeking to finalise the budget proposals for consideration.

The Leader advised he had also received written representations from Councillor Kennelly, who in expressing support for the budget proposals, highlighted:

·             The need to recognise their focus in seeking to protect the most vulnerable against the rising costs of living.

·             The challenging nature of the decisions forced upon the Council as a result of the stance taken and financial measures introduced by central government.  Whilst recognising these challenges he also felt it important to commend the positive initiatives and support which the budget proposals had been designed to continue protecting such as the Resident Support Fund and strategic goals such as reducing carbon emissions and tackling the climate emergency.

·             The regressive nature of Council Tax as a means of ensuring (particularly as a result of rising costs and demand in relation to adult social care and children’s services) the Council was able to continue supporting and protecting the most vulnerable in society.

Councillor Georgiou, was then invited to speak who, whilst outlining the regressive nature of Council Tax, also expressed concern at the fairness of the proposed increase in Council Tax recommended within the budget proposals given the impact on local residents, particularly those living within Alperton and the surrounding area.  Whilst recognising the challenging economic context and impact of austerity, stemming from the 2008 financial crash on local government finances, compounded by Brexit and recent central government fiscal interventions, concerns were raised about the proposed increase in Council Tax when compared to reductions in services locally.  Concerns were also highlighted in relation to the impact of the Mayor for London’s precept and change in Government policy to move responsibility for funding Adult Social Care to local authorities, again through Council Tax.  Given the concerns highlighted, Councillor Georgiou felt there was a need for the Council to ensure that funding collected locally was refocussed and prioritised on local areas of improvement, including:

·             The state of roads and pavements – with a call for additional capital investment.

·             Street Cleansing – with concerns highlighted in relation to the new intelligence-led approach to street cleaning.

·             Investment in young people – with concerns highlighted regarding the reduction in funding over the last decade on youth services and impact on the most underprivileged young people, which it was required the development of a new Youth Offer that would dedicate funding to youth services in Brent.

As a final contribution, Councillor Conneely was then invited, as Chair of the Resources and Public Realm Scrutiny Committee and Budget Scrutiny Task Group, to introduce the main findings and recommendations within the Budget Scrutiny Task Group report, which had been included as an appendix to the Budget and Council Tax 2023/24.  In introducing the report, Councillor Conneely 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 and level of savings already delivered as a result, current economic challenges and increasing complexity of demand for Council services along with similar pressures on other statutory and voluntary and community sector support.  Taking these issues into account the Budget Scrutiny Task Group had been impressed with the Council’s attempts to focus investment on the most vulnerable, particularly in relation to the Resident and Council Tax Support Fund and in seeking to address housing demand and reduce the use of temporary accommodation.  Highlighting the recommendations made as a result of their review, the Task Group had:

·             Been keen to ensure that the budget proposals were clearly presented with clarity provided regarding cuts and investment proposals.

·             Emphasised the importance of ensuring a holistic approach to residents care including ensuing that an effective collaborative mechanism was established between the Council, NHS and other relevant stakeholders to agree patient discharge/step down plans and to leverage sufficient financial contributions from the NHS and other stakeholders to improve the Health and Social Care function in Brent in order to avoid the main cost burden falling on the Council. 

·             Supported the need to seek additional funding in order to support Brent Schools through the Dedicated Schools Grant

·             Supported the need for additional investment in highways infrastructure and to further explore the development of income generation opportunities as a means of supporting strategic priorities.

·             Recognised the importance of the ongoing financial support for the Council Tax Support Scheme, given the assistance being provided for those most vulnerable in society and lack of alternative viable options to raising Council Tax as a means of addressing the current financial pressures and challenges on the Council.

In concluding, Councillor Conneely advised that the Task Group had also been keen to ensure the budget clearly set out how the spending proposals were aligned with agreed strategic priorities for the borough and to support the need for continuing lobbying for Local Government funding reforms, again highlighting what was felt to be the regressive nature of Council Tax.  On this basis the recommendations made by the Budget Scrutiny Task Group were commended to Cabinet for consideration as part of the budget setting process.

In response to the comments made Councillor Butt felt it important to recognise the detrimental impact of the governments approach towards local government and wider public sector funding which had required the Council to make difficult decisions in seeking to set a balanced budget whilst also maintaining investment in key local services and in addressing the ongoing challenges of the cost-of-living crisis and wider economic pressures as a means of continuing to support residents.  He also expressed his thanks for the hard work of members and officers in producing the Task Group 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.

Having also thanked members for their contributions, Councillor Mili Patel, as Deputy Leader and Cabinet Member for Finance, Resources & Reform then introduced the report which set out the Council’s budget proposals for 2023-24. 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.

In presenting the report, Councillor Mili Patel began by providing a strategic overview to the context in which the budget proposals had needed to be developed.  This included the ongoing risks and uncertainties outlined in relation to inflationary pressures, the economic challenges resulting from the war in Ukraine, Government’s short term funding settlements and delay in wider local government funding reforms along with the impact of the cost-of-living crisis, recovery from the pandemic and Brexit.  Members also noted this followed a twelve-year period of significant reductions in Government funding which had required the Council to make £196m worth of savings, despite an increase in demand for key services and wider social and demographic changes which had resulted in particular pressures on Adult’s and Children’s Social Care and the homelessness budgets.  In noting the challenges these issues had presented in relation to the Council’s overall medium-term Financial Strategy, members were advised that the proposals detailed within the report had been designed to address the significant financial impacts arising from the demographic and inflationary pressures identified whilst also seeking to ensure that the Council continued to support those most in need and operate in a prudent, financially sustainable and resilient way and meet its requirements in delivering a balanced budget.

In noting the outcome of the Local Government Finance Settlement for 2023/24 announced by the Government in December, members felt it important to recognise that whilst better than anticipated the increase had also assumed the maximum permitted increase in Council Tax of 4.99% (without triggering the need for a referendum).  The maximum allowable therefore represented a 2% increase in the previous limit (based on a 1% uplift in Council Tax and 1% uplift in the Adult Social Care precept), although it was noted that even allowing for this, the additional funding available to support existing services was less than inflation and would still therefore amount to a real term cut alongside the increased demands on services.

In focussing on the detail proposals, Councillor Mili Patel highlighted that aside from the usual updating and adjustments to various technical assumptions the key features within the budget for 2023/24 therefore included:

·             a proposed Council Tax rise of 4.99% for the Brent element, which included 2% ring fenced for Adult Social Care.  The proposed increase had been designed to reflect the current financial pressures facing the Council 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);

·             New budget savings proposals with an aggregate value of £18m, with £4.5m deferred to 2024/25 as detailed within Appendix C(i) of the report.

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

In supporting the budget proposals, contained within the report, Cabinet Members recognised the ongoing nature of the challenges and financial pressures identified and also took the opportunity to thank the finance team for their work in developing the budget proposals whist also seeking to safeguard, as far as possible, key services and support for local residents and businesses focussed around the Council’s core strategic priorities.  It was noted these priorities included:

·             ongoing support for Brent Hubs, Resident & Household Support Fund and Council Tax Support Scheme, including transformative provision for establishment of a Family Food Fund and community shop and kitchen at Bridge Park Leisure Centre working with local partners in order to maintain support for residents across the borough;

·             maintaining the ongoing commitment to increase the supply of genuinely affordable and accessible housing alongside the regeneration of the borough and creation of employment opportunities whilst also seeking to keep the borough as clean and green as possible and provide for maintenance of key infrastructure;

·             Members also welcomed the aim to continue prioritising the most vulnerable in society whilst also seeking to protect essential services particularly in relation to health and adult social care with the key priority to continue working in collaboration with local providers (given the significant pressure on health service and social care funding) and work being undertaken to address wider health inequalities.

·             continued support for local schools and Special Educational Needs provision, with specific reference to the enhancement of SEND provision through capital investment in a new school and to the establishment of a scheme to support local provision of childcare residential placements, alongside various initiatives to enhance youth provision across the borough including use of NCIL, given the significant cuts in this area as a result of the Government’s programme of austerity.

In summing up, Councillor Muhammed Butt highlighted the challenging nature of the budget setting process given the ongoing impact of the cost-of-living crisis, wider economic challenges 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 core strategic priorities and protecting the most vulnerable residents in the borough.  Despite recognising the significance of the financial challenges identified, cumulative impact of austerity and the Governments approach towards local government funding (including the regressive nature of Council Tax) along with the level of cuts already delivered by the Council and identified for 2023-24 and beyond, he advised that the measures outlined had been designed to ensure the Council was able to operate in a financially sustainable and resilient way.  Whilst development of the proposals had required difficult choices to be made, including the proposed level of increase in Council Tax, he ended by highlighting the aim to ensure they were focussed on enabling the Council to deliver a balanced budget alongside key services and essential support and protection for residents across the borough during such challenging times and ensure the best possible outcomes for all.

Having noted the comments provided, and welcomed and supported the approach outlined within the report along with the recommendations made by the Budget Scrutiny Task Group, Cabinet RESOLVED:

(1)    To agree to recommend to Full Council an overall 4.99% increase in the Council’s element of Council Tax for 2023/24, with 2% as a precept for Adult Social Care and a 2.99% general increase.

(2)   To agree to recommend to Full Council the General Fund revenue budget for 2023/24, as summarised in Appendices A and B of the report.

(3)    To agree to recommend to Full Council the savings proposals for 2023/24 and deferral of savings to 2024/25 as set out in Appendix C (i) of the report.

(4)    To note the report from the Budget Scrutiny Task Group in Appendix D of the report.

(5)    To agree to recommend to Full Council the HRA budget for 2023/24 and business plan, as set out in section seven and Appendix Q of the report.

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

(8)    To note the Dedicated Schools Grant, as set out in section eight 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 of the report and Appendix E, and note the Capital Pipeline Schemes in Appendix F.

(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 and conduct a Financial Resilience Assessment, 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 2023/24, as set out in Appendix M report.

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

(15)  To note the advice of the Corporate Director of Governance, as set out in Appendix O of the report.

(16)  To note the decision of the Corporate Director of Finance and Resources to continue as part of the Eight Authority Business Rates pool in 2023/24 as set out in Section five of the report.

(17)  To also note and approve the specific recommendations identified for consideration by Full Council as detailed in section 2.17 – 2.36 of the report.