Agenda item

This report sets out the outturn for income and expenditure versus the revenue budget and capital programme for 2024-25 and other key financial data.

Cabinet RESOLVED to note the overall financial Outturn position for 2024-25, as detailed within the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 4 August 24

In Councillor Mili Patel’s (as Deputy Leader and Cabinet Member for Finance & Resources) absence, Councillor Muhammed Butt (Leader of the Council) introduced a report from the Corporate Director Finance & Resources presenting the outturn for income and expenditure for 2024-25 and other key financial data.

In introducing the report, Cabinet was reminded of the profound nature of the financial challenges experienced by the Council during 2024-25, as reflected within the report, alongside the efforts made to navigate the pressures being experienced with determination, resilience and a commitment to improving the lives of residents across the borough.  In recognising the complexity of the issues faced, which it was pointed out had been shaped by national economic pressures, rising demand for services and the continuing impact of the cost-of-living crisis, the opportunity was taken to thank all those involved for their efforts and dedication in being able to deliver a balance General Fund outturn, which it was felt reflected the prudent and robust approach towards financial planning adopted by the Council.

In terms of spend on the Capital Programme, members were advised this had totalled £238.9m with the investment designed to support the continued provision of vital regeneration projects, housing developments and improvements in the borough’s public realm.  Members were advised that the Housing Revenue Account (HRA) had also closed in surplus with reference also made to the £3.3m worth of in-year savings delivered by Community, Health and Wellbeing while still maintaining essential services.  Whilst noting that the General Fund had, as a result, achieved break even as a whole the challenging nature of pressures faced had been reflected in the fact that the Council had experienced a £15.5m overspend across services, driven primarily by the escalating costs of homelessness.  In response, a number of spending controls had been introduced during 2024-25, which had saved £8.6m whilst also reducing reliance on reserves.  These had included a hold on vacancies, renegotiation of contracts and necessary but tough decisions to protect frontline services.  With reserves only available for use once, members were advised that the focus moving forward now remained on building a sustainable and resilient financial foundation with the report representing a financial reflection of Brent’s core values in seeking to prioritise the most vulnerable, invest in local communities and uphold the Council’s commitment to fairness and equity based on a process of innovation and in seeking to lobby for a fair allocation of resources reflecting need across the borough.

In considering the outturn position, Members acknowledged the significant level of financial challenge faced by the Council with the report highlighting the scale and depth of the pressures identified including those relating (as previously identified) to increased demand in relation to homelessness, which was recognised as a national and regional issue resulting from increased demand for housing as well as pressure on the supply of temporary accommodation.  In seeking to alleviate the pressures identified, the opportunity was taken to highlight and recognise the lead being taken by the Council in delivery of affordable social and council homes across the borough and support expressed for the efforts being made to also better regulate the private rented sector as well as lobby for implementation of the Renters Rights Bill and to utilise additional funding recently announced by the Government in relation to the affordable housing package.

The opportunity was also taken to highlight the efforts being made, in seeking to manage the overspend identified within Children and Young People, to reduce the reliance on agency staff (despite the ongoing national challenges in relation to recruitment and retention) and deliver the new Children’s Residential Care Home as a means of addressing ongoing pressures in terms of placement budgets.

In recognising the efforts made to continue managing and mitigating against the financial challenges identified Cabinet thanked all those involved for their efforts and as a result RESOLVED to note the overall financial outturn position for 2024-25, as detailed in the report.