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 2 2025/26.

Cabinet RESOLVED:

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

(2)       To note the savings delivery tracker, as detailed within Appendix A of the report.

(3)       To note the prudential indicators for treasury management as detailed within Appendix B of the report.

(4)       To approve the virements as set out within section 9.21 of the report.

(5)       To note the discretionary Business Rates reliefs to be awarded as set out within Section 9.18 of the report.

(6)       To approve the amendments to the capital budget as set out in paragraph 12.2 of the report.

(7)       To delegate authority to the Corporate Director for Finance and Resources to agree the terms of the £40m loan facility to I4B as set out in paragraph 12.2 of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 20 October 25

Councillor Mili Patel (as Deputy Leader and Cabinet Member for Finance & Resources) introduced a report from the Corporate Director Finance & Resources detailing the financial forecast for the General Fund revenue budget, Housing Revenue Account, Dedicated Schools Grant and the Capital Programme as at Quarter 2 2025-26.

In presenting the report, Councillor Mili Patel, highlighted that despite the considerable efforts being made to manage the budget, the operating environment and wider economic and social context faced by the Council remained challenging with the latest forecast position reflecting an approach which it was felt continued to balance ambition with responsibility.  In recognising the tough financial conditions faced by many councils across the country due to rising costs, high demand, and reductions in funding members were advised that through careful management and collective discipline Brent continued to prioritise its commitment towards balancing its budget.  It was noted, however, that this reflected a determined and challenging process involving every service continuing to scrutinise spend, recover income and seek innovation to ensure they were able to continue operating effectively and delivering the services relied upon by residents.

Whilst acknowledging the challenges identified, members were also reminded that the Council continued to seek opportunities to support the development of services.  As an example, reference was made to the £1.5m secured through the Pride in Place fund that would support the Council in continuing to make tangible improvements to the boroughs high streets and public spaces, showing residents that financial discipline remained the foundation for ongoing progress.

Overall, it was felt the report demonstrated the way in which the Council continued to take its responsibilities seriously in seeking to meet immediate pressures whilst also seeking to protect services, innovate, collaborate and invest in long term community strength in order to remain financially sustainable.

In considering the forecast position, Members acknowledged the significant level of financial challenge faced by the Council given the scale and depth of the pressures identified whilst also expressing support for the efforts being made to uphold Brent’s core values in seeking to prioritise the most vulnerable and invest in local communities and to continue lobbying for the necessary reform of local government finance in order to provide a fair allocation of resources reflecting need across the borough.  Support was also expressed for the innovation and transformation being sought in service delivery, along with the efforts being made to treat staff with fairness and respect, acknowledging the work being undertaken across the Council to continue effectively delivering services in such challenging circumstances.

Given the significant pressures and challenges identified, members also felt it important to recognise the range of proactive measures being taken to transform and protect the delivery of services for residents.  With the current forecast overspend at £14.5m these interventions included the introduction of additional spending controls along with efforts to alleviate pressures in relation to housing need, deliver a new model of resident support as well as drive additional savings in the way servicers were procured and commissioned.  Members noted these interventions as being in addition to the progress in delivery of the £8.9m programme of savings already agreed and efforts being made to continue investing in people and infrastructure, working across departments, to transform how the Council was able to support residents and manage its finances.

In acknowledging the challenges identified in seeking to manage demand and address the pressures identified, members highlighted their commitment to continue the work with Corporate Directors in relation to the monitoring and management of budgets in each service area and to take the difficult decisions required in order to deliver and safeguard the council’s reputation for financial sustainability.

Having noted the update provided the report and ongoing focus on delivery, Cabinet RESOLVED:

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

(2)       To note the savings delivery tracker, as detailed within Appendix A of the report.

(3)       To note the prudential indicators for treasury management as detailed within Appendix B of the report.

(4)       To approve the virements as set out within section 9.21 of the report.

(5)       To note the discretionary Business Rates reliefs to be awarded as set out within Section 9.18 of the report.

(6)       To approve the amendments to the capital budget as set out in paragraph 12.2 of the report.

(7)    To delegate authority to the Corporate Director for Finance and Resources to agree the terms of the £40m loan facility to I4B as set out in paragraph 12.2 of the report.