Agenda item

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 2023/24.

Cabinet RESOLVED

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

(2)    To note the savings delivery tracker in Appendix A of the report.

(3)    To note the Prudential Indicators set out in Appendix B of the report.

(4)    To approve the virements set out in section 3.9.11 of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 22 January 24

In Councillor Tatler’s absence (as Deputy Leader and Cabinet member for Finance, Resources & Reform), Councillor Muhammed Butt (Leader of the Council) introduced the report setting 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 2023/24.

In highlighting the forecast overspend of £13m against the revised General Fund revenue budget at Quarter 3, which was broadly similar to the position reported at Quarter 2, Councillor Muhammed Butt outlined the significant and serious nature of the financial challenges faced by the Council as a result of the current economic environment, government austerity and ongoing pressures in relation to homelessness and the increased demand on temporary accommodation.  These pressures had also been compounded by the recent Local Government financial settlement with Brent having received the second lowest settlement in London for 2024-25 and, despite the significant challenges faced, not having been allocated any additional support towards the pressures identified in relation to homelessness.  In recognising the seriousness of the position outlined and scale of the financial challenges faced members noted the progress being made in relation to the implementation and identification of further savings proposals alongside the additional measures which had been introduced to control expenditure and maintain financial control.

Members welcomed what were felt to be not only the prudent but also responsible nature of the measures identified in order to ensure the Council remained focussed on maintaining a balanced budget whilst also seeking to safeguard key services and protect residents, given the wider impact of the cost-of-living crisis and economic challenges highlighted, with specific reference made to the ongoing pressures being created as a result of the increase in homelessness and demand on housing supply.  In addition, members attention was drawn to the additional pressure on the Housing Revenue Account as a result of current economic conditions, rent limitations imposed during 2023-24 and increased demand on disrepairs, responsive repairs and void works along with the mitigating actions identified in response.

Concerns were also highlighted regarding the lack of clarity provided by the Government regarding the provision of future funding for the Household Support Fund given the importance of support being provided for local residents.  Despite this uncertainty, Cabinet welcomed and praised the support continuing to be provided by Council through its Resident Support Fund (RSF) in relation to households struggling with household bills, food, fuel rent, mortgage or council tax arrears.  During 2023-24 it was noted that the RSF had supported 2,773 applications awarding a total of £2m to residents with the total Fund consisting of a £3m investment by the Council and £2m allocation from the HSF reactive support fund.  Whilst it was recognised that demand would increase over the winter months an assurance was provided that the Council would continue to do everything possible to carry on supporting residents in need and through the cost-of-living crisis.  The opportunity was also taken to highlight the ongoing pressures in relation to adult social care, despite the breakeven figure outlined within the report, as a result of issues relating to recruitment, the wider impact of the current complexities in terms of the social care and hospital discharge system and economic conditions affecting providers across the care system.  As a result, the ongoing work of all involved in maintaining and delivering such vital services was also commended.

In support of the approach outlined, Cabinet RESOLVED:

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

(2)    To note the savings delivery tracker in Appendix A of the report.

(3)    To note the Prudential Indicators set out in Appendix B of the report.

(4)    To approve the virements set out in section 3.9.11 of the report.