Agenda item

Draft Budget 2025/26

The purpose of this report is to set out the Council’s budget proposals for 2025/26. It also provides a general update on the Council’s overall financial position, including an overview of the current economic outlook.

Decision:

Cabinet RESOLVED:

(1) To note the overall financial position.

(2) To agree to consult on the new budget proposals, as set out in Appendices A and B of the report.

(3) To agree to consult on a Council Tax increase of 4.99% (consisting of a 2.99% general increase plus 2% for the Adult Social Care Precept) in 2025/26.

(4) To endorse the approach to the statutory process of consultation, scrutiny and equalities between November 2024 and February 2025, as set out in section ten of the report.

(5) To endorse the changes to the technical budget assumptions underpinning the budget, as set out in section six and seven of the report.

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

(7) To note the position with regard to the Housing Revenue Account, as set out in section twelve of the report.

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

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Tuesday 19 November 2024

Minutes:

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance & Resources) introduced a report which set out the Council’s budget proposals for 2025-26. The report also provided a general update on the Council’s overall financial position, including not only the Council’s General Fund revenue budget but also Housing Revenue Account, Dedicated Schools Grant and Capital Programme as well as an overview of the current economic outlook.

In introducing the report, Councillor Mili Patel began by thanking officers involved for their efforts in preparing the draft budget proposals with the detail provided reflecting the Council’s ongoing commitment to undertaking the budget setting and consultation process as transparently as possible involving key stakeholders such as local residents, business and other key stakeholders including the scrutiny function. Despite the considerable efforts to maintain financial control, the operating environment and wider economic context faced by the Council remained volatile. Since 2010, members were reminded that the Council had lost at least £222m from its core budget with the impact having been felt by everyone who lived and worked in the borough. Whilst recognising the efforts made to innovate, identify efficiencies and generate income members were advised these measures alone would no longer be sufficient over the longer term with the need identified, as a result, to deliver £16m worth of cuts during 2025-26 in order for the Council to be able to continue standing still with the challenging nature of these additional cuts fully acknowledged for residents, staff and members alike. Without intervention, however, members were advised the risk of being able to move back to financial sustainability would become more difficult.

In highlighting how local authorities such as Brent were not alone in facing these challenges, with 18 Council’s having to apply to the Government for Exceptional Financial Support and 1 in 4 identified as likely to require emergency support over the next two years, members also noted how the sector had also become the government’s emergency provider of last resort delivering more services than ever before. This had involved picking up the challenges and costs in relation to areas such as children and adult social care and the housing crisis, making it increasingly difficult to explain to local residents how the financial burden in relation to Council Tax had been shifted to cover these pressures.

Whilst the government had now changed, and Chancellor’s Autum Statement had outlined a range of measures aimed at fixing the foundation of the economy and delivering a renewed focus on public services the challenges and pressures facing the Council remained the same and, it was highlighted, would now require a fundamental shift in approach given the ongoing impact of austerity. Highlighting the savings proposals identified for 2025-26 within Appendix A & B of the report alongside the updated budget assumptions and proposal to seek (at this stage) a Council Tax increase of 4.99% (based on a 2.99% general increase plus 2% for the Adult Social Care precept) which had been designed to enable the Council to set a balanced budget, Councillor Mili Patel recognised the challenging nature of their delivery with the options representing an aggregate of choices it was pointed out the Council would have preferred not to have been required to make.

In concluding her introduction, Councillor Mili Patel once again highlighted how challenging and difficult development of the budget proposals had been. Cabinet Members and officers were thanked for their support in the process with it noted that the priority remained to protect residents across the borough and in doing everything possible to ensure a safety net continued to be provided for the most vulnerable with the Council committed, in advance of the Local Government Financial Settlement, to taking the tough decisions required to deliver a balanced budget and minimise impact on the delivery of frontline services.

In supporting the budget proposals, contained within the report, Cabinet Members recognised the difficult 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 ensure the Council’s resources were being used as effectively as possible.

In terms of specific proposals and priorities, members welcomed:

· the ongoing commitment to strengthening Public Realm in order to ensure Brent remained a welcoming and vibrant place supported by ongoing investment in maintaining the borough’s streets, highways, and public spaces designed to create a cleaner, greener safer and a more accessible environment. The opportunity was also taken to outline the Council’s commitment towards sustainability and improved recycling outcomes including not only the Extended Producer Responsibility Scheme but also an expansion of the garden waste collection service , making it easier for residents to participate in reducing waste and supporting recycling.

· The priority in seeking to maintain the wellbeing of residents across the borough given the pressures being experienced as a result of the cost-of-living crisis. This included an extension of the Resident Support Fund, to ensure those most in need continued to have access to resources and assistance including food and energy vouchers and emergency aid as a safety net. In addition, members welcomed the enhancements being delivered in relation to hub provision across the borough including redevelopment of the Wembley Hub Space and the New Horizon hub which it was felt demonstrated the Council’s dedication to safeguarding the welfare of the borough’s residents, fostering resilience, and building a Brent where everyone had the support they needed to thrive.

· The priority (recognising the financial constraints identified) to maintaining a focus on community safety in seeking to ensure neighbourhoods across the borough remained secure and resilient and able to foster a sense of well-being and security.

· The ongoing 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 (including the support and care being provided through the expansion of Supported Living provision as a longer term alternative strategy to residential care) and in addressing the pressures and challenges in relation to services for children and young people (including support being provided through the Family Wellbeing Centres, SEND provision and the demand and increasing cost of residential care) in order to maintain support for residents across the borough and ensure the best possible outcomes for all. In noting the increased investment being prioritised by the Government in relation to the National Health Service members also recognised the importance of the ongoing collaboration and partnership work to ensure services (including prevention and community support) were being delivered in a coordinated way across the North West London region

In summing up Councillor Muhammed Butt highlighted the need to recognise the significant financial pressures and challenges that continued to be faced by the Council in seeking to set a balanced budget and operate in a financially sustainable and resilient way given the cuts in core Central Government funding since 2010, increasing burden falling on Council Tax payers as a result and reduction in number of Council staff. Whilst continuing to innovate and generate efficiencies, the opportunity was taken to reiterate that these measures on their own would no longer be enough to support the Council in the future which had resulted in the new savings proposals identified. These had included £4.4m of savings from services and £5m resulting from proposed changes to Council Tax Support, which, if approved following consultation and scrutiny, would need to be implemented during 2025-26 in addition to a further £6.5m of operating efficiencies in order to enable a balanced budget to be set, recognising the provisional Local Government Funding Settlement still be announced and assumption on which the 2025-26 budget proposals had been based, as outlined in section 5.25 of the report.

In highlighting the focus to ensure the budget process remained priority led with resources aligned towards delivery of statutory responsibilities and the Council’s core strategic as set within the Borough Plan, the Leader ended by outlining the commitment to ensure the consultation and decision-making process on the budget proposals was as transparent and open as possible and designed, as far as possible, to safeguard frontline services for the most vulnerable residents to ensure no one was left behind whilst seeking to deliver a balanced budget.

Having noted the current financial context in which the budget proposals had needed to be developed Cabinet RESOLVED:

(1) To note the overall financial position, as set out within the report.