Agenda item

This report sets out the Council’s budget proposals for 2024 - 25.  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 considered at the Full Council meeting on 29 February 2024.

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 2024-25:

1.     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, which had been included as Appendix D to the Budget and Council Tax 2024/25 report. In introducing the report, Councillor Conneely began by thanking all members of the Budget Scrutiny Task Group along with everyone else who had participated in the scrutiny process.  In emphasising that the upcoming financial year would be the most challenging for local authorities across the country, Councillor Conneely reiterated the need for extensive reform of the current way in which local authorities were funded, given the inadequacy of the existing funding regime.

Due to the cumulative impact of funding cuts on local government and other public services as a result of austerity over the previous decade Councillor Conneely, in presenting the outcome of the Task Group review, highlighted the importance placed on collaboration between neighbouring local authorities, partners and the voluntary and community sector to not only deliver vital services to residents, but to also counter the competitive environment imposed by discretionary grant funding which positioned councils against each other.  This emphasis on collaboration had been reflected in the Task Group recommendations, which included the establishment of a shared outcomes framework with the voluntary and community sector to co-design and co-deliver budget proposals. Furthermore, the Task Group had recommended implementing additional shared service agreements with other local authorities with Councillor Conneely also advising that the Task Group had welcomed the decision to retain use of the New Millenium Day Centre, which would be operating under a new shared service arrangement.

Highlighting other key recommendations made as part of the review, Councillor Conneely also referred to the Task Groups support in seeking a better alignment of NHS resources to population need and for increased delegation of budgets and decision making to the Brent Integrated Care Partnership (ICP), in order to better address local need and enable more clinically led collaboration at local level.  As part of the wider approach towards addressing the budget challenges identified the Task Group had also been keen to support and recommend the development of a longer term strategic approach towards income generation including yearly action plans and a robust monitoring process to enable the adoption of a more holistic approach (with dedicated cross departmental resource) to investigate and identify additional opportunities to generate income.

In concluding, Councillor Conneely once again thanked all those involved for their participation in the review process and commended the recommendations made by the Budget Scrutiny Task Group to Cabinet for consideration as part of the budget setting process.

2.     Councillor Georgiou, who began by echoing the concerns expressed at the challenging nature of the financial pressures faced by local authorities, created by a combination of factors such as the significant underfunding of local authorities, Brexit, and the economic mismanagement of the current Conservative Government.  Compounding these factors, Councillor Georgiou felt that the current position had also been adversely impacted by spending decision taken by the current Council Administration, such as those related to Civic Centre improvements and the pursuit of what he regarded as unviable development schemes.

Whilst recognising the need for difficult decisions in order to provide a balanced and sustainable budget, Councillor Georgiou advised he was keen to ensure that residents priorities were at the forefront of the proposals being considered, with the Liberal Democrats Group therefore intending to propose a number of amendments at the upcoming Council meeting seeking to address areas of ongoing concern identified by residents including street cleanliness, youth provision and the climate emergency.

Given the proposed increase in Council Tax, Councillor Georgiou felt there was a need for the Council to ensure that funding collected locally was refocussed and prioritised on local areas of concern including:

·             Street Cleansing – with concerns highlighted in relation to the new intelligence-led approach to street cleaning and the need for additional investment;

·             Waste collection and recycling – with ongoing concerns highlighted regarding the operation of the blue bag recycling scheme and the option of wheelie bins therefore being sought as an alternative; and

·             Focus in addressing the supply and cost pressures relating to temporary accommodation through the provision of more genuinely affordable housing developments and introduction of more stringent planning policies in relation to the Council’s affordable housing targets.

To conclude, Councillor Georgiou felt there was a need for a clear commitment from any potential incoming government to ensure that the necessary reforms required to local government funding were introduced in order to address the challenging financial position faced across the sector and provide the necessary reassurance concerning the future of local government services.

Having expressed disappointment at the lack of engagement by the Liberal Democrats Group in the Scrutiny Budget Task Group process, the approach taken and recommendations made by the Budget Scrutiny Task Group were welcomed and supported by Cabinet who RESOLVED:

(1)     To recommend to Full Council an overall 4.99% increase in the Council’s element of Council Tax for 2024/25, with 2% as a precept for Adult Social Care and a 2.99% general increase.

(2)     To recommend to Full Council the General Fund revenue budget for 2024/25, as summarised in Appendices A and B of the report.

(3)     To recommend to Full Council the savings proposals for 2024/25 and 2025/26, as set out in Appendices C (i) and C (ii) of the report.

(4)     To note the Equalities Impact Assessments on the budget proposals, as set out in Appendices C (iii) and C (iv) of the report.

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

(6)     To recommend to Full Council the HRA budget and business plan for 2024/25, as set out in section eight and appendix Q of the report.

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

(8)     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 eight of the report.

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

(10     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 11 and Appendix E of the report and note the Capital Pipeline Schemes in Appendix F of the report.

(11)    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.

(12)    To agree for a new loan and equity facility of up to £40m to be made available to i4B Holdings Ltd for the provision of PRS accommodation in line with the Temporary Reform Accommodation plan as set out in section 11.38 of the report.

(13)    To recommend to Full Council the Reserves Strategy and schedule of reserves, as set out in Appendices K (i) and K (ii) in the report.

(14)    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.

(15)    To agree, and where relevant recommend to Full Council, the schedule of fees and charges, as set out in Appendix M of the report.

(16)    To note the results of the budget consultation, as set out in section seven and detailed in Appendices N (i) and N (ii) of the report.

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

(18)    To note the decision of the Corporate Director of Finance and Resources to continue as part of the Eight Authority Business Rates pool in 2024/25 as set out in section six of the report.

To also note and approve the specific recommendations identified for consideration by Full Council as detailed in section 2.19 – 2.38 of the report.

Eligible for call-in: No (report and recommendations to be referred to Council)

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

As an initial contribution, Councillor Conneely was 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 report 2024-25.  In introducing the report, Councillor Conneely began by thanking all members of the Task Group and everyone else who had participated in the scrutiny process.  In emphasising that the upcoming financial year would be one of the most challenging for local authorities across the country, Councillor Conneely highlighted what she felt to be the need for extensive reform of the current way in which local authorities were funded, given the inadequacy of the existing funding regime.

Due to the cumulative impact of funding cuts on local government and other public services as a result of austerity over the previous decade Councillor Conneely, in presenting the Task Group report, highlighted the importance placed on collaboration between neighbouring local authorities, partners and the voluntary and community sector to not only deliver vital services for residents, but also to counter the competitive environment imposed by discretionary grant funding which positioned councils against each other.  This emphasis on collaboration had been reflected in the Task Group recommendations, which included the establishment of a shared outcomes framework with the voluntary and community sector to co-design and co-deliver budget proposals. Furthermore, the Task Group had recommended implementing additional shared service agreements with other local authorities with Councillor Conneely also advising that they had welcomed the decision to retain use of the New Millenium Day Centre, operating under a new shared service arrangement.

Highlighting other key recommendations made as part of the review, Councillor Conneely also referred to the Task Groups support in seeking a better alignment of NHS resources to better reflect the local population and need and for increased delegation of budgets and decision making to the Brent Integrated Care Partnership (ICP), in order to enable more clinically led collaboration at local level.  As part of the wider approach towards addressing the budget challenges identified, the Task Group had also been keen to support and recommend the development of a longer-term strategic and more holistic approach towards income generation including yearly action plans and a robust monitoring process with dedicated cross departmental resource.

In concluding, Councillor Conneely once again thanked all those involved for their participation in the review process and commended the recommendations made by the Budget Scrutiny Task Group to Cabinet for consideration as part of the budget setting process.

In welcoming the contribution from Scrutiny Budget Task Group, Councillor Tatler as Deputy Leader & Cabinet Member for Finance, Resources and Reform supported the view that the 2024-25 budget setting process was likely to be one of the most challenging faced by the Council reflecting the ongoing impact of austerity and importance, highlighted as an outcome of the review of the need for enhanced collaboration between all stakeholders in seeking to address the pressures faced.  In commending the thorough nature of the approach and work undertaken by the Task Group, Councillor Tatler thanked all those involved for their contribution as a key part of the budget consultation.

In support of the comments made, Councillor Fleur Donnelly-Jackson (Cabinet Member for Customers, Communities and Culture) welcomed the recommendation to establish a shared outcomes framework with the voluntary and community sector, highlighting the benefits of closer collaboration with key partners integral to the delivery of services including Brent Hubs.

As a further contribution the Leader then welcomed and invited Councillor Georgiou to speak, who began by echoing the concerns expressed at the challenging nature of the financial pressures faced by local authorities, created by a combination of factors such as the significant underfunding of local authorities, Brexit, and the economic mismanagement of the current Conservative Government.  Compounding these factors, Councillor Georgiou felt that the current position had also been adversely impacted by spending decision taken by the current Council Administration, such as those related to Civic Centre improvements and the pursuit of what he regarded as unviable development schemes.

Whilst recognising the need for difficult decisions in order to provide a balanced and sustainable budget, Councillor Georgiou advised he was keen to ensure that residents priorities were at the forefront of the proposals being considered, with the Liberal Democrats Group therefore intending to propose a number of amendments at the upcoming Council meeting seeking to address areas of ongoing concern identified by residents including street cleanliness, youth provision and the climate emergency.

Given the proposed increase in Council Tax, Councillor Georgiou felt there was a need for the Council to ensure that funding collected locally was refocussed and prioritised on local areas of concern, including:

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

·              Waste collection and recycling – with ongoing concerns highlighted regarding the operation of the blue bag recycling scheme and the option of wheelie bins therefore being sought as an alternative; and

·              Focus in addressing the supply and cost pressures relating to temporary accommodation through the provision of more genuinely affordable housing developments and introduction of more stringent planning policies in relation to the Council’s affordable housing targets.

To conclude, Councillor Georgiou felt there was a need for a clear commitment from any potential incoming government to ensure that the necessary reforms required to local government funding were introduced in order to address the serious financial challenges being faced by local authorities, including Brent, and in order to provide necessary reassurance concerning the future of local government services.

In response to the comments made, Councillor Butt expressed disappointment at the lack of engagement by the Liberal Democrats Group in the Scrutiny Budget Task Group process and 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 in order to continuing providing the necessary support to residents.  He also expressed his thanks for the hard work and challenge provided by all members and officers in producing the Task Group report, welcoming the approach adopted and highlighting its importance to the overall budget setting process.

Councillor Tatler, as Deputy Leader and Cabinet Member for Finance, Resources & Reform, then introduced the report which set out the Council’s budget proposals for 2024-25. 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 Tatler began by outlining the extensive nature of the consultation undertaken with all key stakeholders to develop the budget proposals, before highlighting the seriousness of the Council’s financial position, which had required an additional £8m of savings to be identified for 2024-25 and 2025-26 on top of the £210m of funding cuts delivered since 2010.  In expressing concern at the impact of Government’s ongoing short-term funding settlements and delay in wider local government funding reforms, members noted the 78% decrease in core funding received from government since the start of austerity and associated shift this had created in the placing the funding burden onto Council Tax & Business Rates Payers as well as on fees and charges all directly impacting on local residents.  On a national scale, members were advised that the position was equally challenging with it noted that 1 in 5 councils were anticipating they may have to issue s114 notices.  In outlining the key drivers of the additional pressures being experienced in relation to the increase in demand for key services and wider social and demographic changes along with the specific pressures on the homelessness budget given increased pressure on housing supply and demand, Councillor Tatler felt that budget proposals continued to demonstrate the Councils commitment, despite the severe funding constraints imposed by the government, in seeking to build more social housing, address the climate emergency and tackle the wider equalities highlighted as a result of the pandemic.  Comparing this to the stance taken by both Opposition Groups on the Council in seeking to oppose key developments and wider impact of the governments approach in relation to the current state of the public sector, Councillor Tatler felt that the approach taken by the current Administration demonstrated the Council’s commitment to the renewal of public services based on sustainable long-term financial planning that would ensure no resident was left behind.

As further context in terms of the financial pressures faced, members were advised that the Government’s provisional financial settlement for local government had failed to provide sufficient funding to meet the severe cost and demand pressures faced by many councils, including a £400m shortfall identified for local authorities across London.  The recent announcement of a further £600m was also not expected to materially change the overall position in relation to the Council’s budget, with this funding having been ringfenced by the government for Adult and Children social care and not sufficient to address the growing housing crisis.  Given the additional financial pressures on the Council, currently forecast at £13m, the efforts made to produce a balanced budget whilst seeking to preserve essential services had been the most challenging to date with Brent’s provisional settlement the lowest across all London boroughs (excluding the City of London) and less than the September CPI rate of inflation.

In noting the pressure the provisional settlement and reduction in long term core funding had placed on decisions relating to Council Tax, Councillor Tatler advised the Council remained aware of the additional burden this placed on households particularly during the ongoing period of economic uncertainty with neither this or the use of reserves and sale of assets regarded as a solution to the long term funding pressures faced.  Concerns were also expressed in relation to the ongoing impact of the cost -of-living crisis and uncertainty around future government funding to support the Household & Resident Support Fund and Holiday Activities and Food Programme, which it was pointed out had also required the Council to consider new models of support to continue providing the assistance required.  Reminding members that this had been the sixth one-year settlement in a row for the Council, Councillor Tatler felt it important to highlight the impact this was continuing to have on the financial planning process with the Council therefore continuing to lobby for a longer-term approach.

In concluding her introduction, Councillor Tatler once again highlighted how challenging and difficult development of the budget proposals had been and thanked all those who had engaged in the consultation process along with all Cabinet Members and officers (including the Finance team) 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.  In terms of specific pressures and priorities identified these had included:

·              The significant increase in homelessness, with housing demand increasing rapidly and less supply available along with ongoing pressures on the Housing Revenue Account taking account of the Government’s rent policy.  Whilst a national issue, members commended the work being undertaken in seeking to mitigate against the pressures identified and in maintaining the Council’s commitment to increase the supply of genuinely affordable and accessible housing in as viable a way as possible.

·              The ongoing programme of work and investment in key highway and environmental infrastructure across the borough including waste and refuse collection, tackling fly-tipping, parks and open spaces and towards addressing the climate emergency working in partnership with the Brent Environmental Network (including initiatives such as the new Green Area Neighbourhood pilots) in order to ensure the borough remained as clean and green as possible.

·              The continued support for children and young people despite the ongoing reductions in core government funding and increase in child poverty, with specific reference to the innovative approach adopted in relation to the establishment of various initiatives such as the scheme to support local provision of childcare residential placements, enhancement of SEND provision through capital investment in a new school and establishment of the Family Hubs.

·              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 ongoing pressure on health services and social care funding and impact of the annual rather than longer term funding settlements) in order to address wider health inequalities.  In recognising concerns which had been highlighted relating to the future of the New Millennium Day Centre, members noted that these proposals would involve transfer of the Centre into a new Community & Wellbeing Hub supported by the wider aim in seeking to maximise the independence of young adults transitioning from care.  Whilst also recognising ongoing pressures in relation to adult residential care, Cabinet were pleased to note to approach adopted by the Council in seeking to ensure care staff were paid at the London Living Wage (LLW).

·              Ongoing support for Brent Hubs, warm spaces and the Resident & Household Support models alongside the investment in the boroughs libraries and work being undertaken to maximise income generation opportunities and support the Voluntary & Community Sector in order to maintain support for residents across the borough.

·              Maintaining the ongoing commitment to enhance regeneration, renewal and economic growth across the borough and create employment opportunities whilst also seeking to maintain key infrastructure and continue working with partners to ensure the borough remained safe and secure.

In summing up, Councillor Muhammed Butt felt it important to once again highlight the challenging nature of the budget setting process given the ongoing impact of austerity, the cost-of-living crisis, wider economic challenges and continued uncertainty in relation to central government’s funding of local authorities.  As a result, he welcomed the approach taken by all Cabinet Members and officers in seeking to review all 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 and the level of funding cuts already delivered by the Council, he commended the approach adopted and measures outlined within the report which 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, Councillor Butt ended by highlighting the aim to ensure the process remained as open and transparent as possible and was focussed on enabling the Council to deliver a balanced budget whilst also seeking to maintain the provision of key services and essential support for residents across the borough.

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 recommend to Full Council an overall 4.99% increase in the Council’s element of Council Tax for 2024/25, with 2% as a precept for Adult Social Care and a 2.99% general increase.

(2)    To recommend to Full Council the General Fund revenue budget for 2024/25, as summarised in Appendices A and B of the report.

(3)    To recommend to Full Council the savings proposals for 2024/25 and 2025/26, as set out in Appendices C (i) and C (ii) of the report.

(4)    To note the Equalities Impact Assessments on the budget proposals, as set out in Appendices C (iii) and C (iv) of the report.

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

(6)    To recommend to Full Council the HRA budget and business plan for 2024/25, as set out in section eight and appendix Q of the report.

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

(8)    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 eight of the report.

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

(10   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 11 and Appendix E of the report and note the Capital Pipeline Schemes in Appendix F of the report.

(11)  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.

(12)  To agree for a new loan and equity facility of up to £40m to be made available to i4B Holdings Ltd for the provision of PRS accommodation in line with the Temporary Reform Accommodation plan as set out in section 11.38 of the report.

(13)  To recommend to Full Council the Reserves Strategy and schedule of reserves, as set out in Appendices K (i) and K (ii) in the report.

(14)  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.

(15)  To agree, and where relevant recommend to Full Council, the schedule of fees and charges, as set out in Appendix M of the report.

(16)  To note the results of the budget consultation, as set out in section seven and detailed in Appendices N (i) and N (ii) of the report.

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

(18)  To note the decision of the Corporate Director of Finance and Resources to continue as part of the Eight Authority Business Rates pool in 2024/25 as set out in section six of the report.

(19)  To note and approve the specific recommendations identified for consideration by Full Council as detailed in section 2.19 – 2.38 of the report.