Agenda item

The purpose of this report is to set out the Council’s budget proposals for 2026 - 27. It also provides a general update on the Council’s overall financial position, including an overview of the current economic outlook

Cabinet RESOLVED:

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

(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 2026/27.

(4)       To endorse the approach to the statutory process of consultation, scrutiny and equalities between November 2025 and February 2026, 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 sections 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.

(9)       To note the revised Debt Recovery Policy, as set out in Appendix C of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 24 November 25

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance & Resources) introduced a report from the Corporate Director Finance & Resources setting out the Council’s budget proposals for 2026-27.  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 outlining the responsibility faced by Labour being in power at national, regional and local level and in seeking to make a real difference to communities being served.  As examples of the difference being made, reference was made at national level to recent introduction of the Renters Right Act and uplift being delivered in workers rights supported by activity being led by the Mayor for London at regional level in addressing air quality and the provision of free school meals.  At a local level, this had included the Administration in Brent delivering record levels of Community Infrastructure Levy investment in public realm and youth facilities alongside the track record in delivery of new affordable homes across the borough.  The approach needing to be delivered by Labour (as the governing party) in providing careful stewardship of taxpayers money and public finances was contrasted against that adopted by other parties in seeking to make populist and unfunded pledges without taking account of their wider impact, resulting in the need identified to ensure an honest approach with local residents.  As such the budget proposals detailed within the report were commended in seeking to provide a clear and evidenced based direction for Brent aimed at fixing the foundations to continue running an efficient, fair and future focussed Council despite the challenging and uncertain operating environment and wider economic context within which it continued to function.

Members were advised that it was within this context that the Council’s recent Autumn Budget proposals “Building a Better, Bolder Brent” had been submitted to the Chancellor.  The proposals set out six quick wins identified by the Council which it was felt would help to turn ambition into action. These included backing the West London Orbital rail line, reforming gambling laws to protect the boroughs high streets, giving councils powers to introduce a visitor levy on overnight accommodation, ensuring major events at Wembley contributed directly to local culture, creating a new long-term housing partnership with Government and delivering much needed reform to local government finance.

At the same time, it was felt that the Council’s budget proposals also served to highlight wider progress focussed locally on the delivery of cleaner streets, safer town centres, better transport, fairer housing, all of which had been designed to unlock pride in the borough.  In seeking to fix the foundations, however, the need to be honest about the challenges faced and to be realistic about the measures needed to address them was also recognised given the ongoing impact being experienced as a result of the previous 14 years of austerity.  Highlighting how local authorities such as Brent were not alone in facing these challenges, members were reminded that 30 Council’s across England (including 7 in London) had already required Exceptional Financial Support to balance their immediate budgets with more expected to follow and Brent not exempt from those same pressures.  Despite the considerable efforts to maintain financial control, innovate, identify efficiencies and generate income Councillor Mili Patel advised that the budget gap within Brent totalled approx. £30m over the next 3 years with a third of that falling during the 2026-27 financial year.  This reflected rising demand for temporary accommodation, unprecedented demand in Adult Social Care and significantly increased costs for children’s placements, which members noted continued to place immense strain on local budgets and services.  In acknowledging the challenging nature of decisions required as a result, the proposed 4.99% rise in Council Tax being recommended for 2026/27 was not, it was pointed out, a decision which had been taken lightly but had been identified as necessary to generate £9.1m in funding that could be used to protect vital frontline services with members assured that every effort would continue to be made to ensure Brent’s Council Tax Support scheme and hardship funds continued to shield households from the sharpest pressures of the cost-of-living crisis.

Whilst aware of the challenging nature of the pressures faced by the Council, the opportunity was also taken to outline the range of measures being taken to mitigate against them including expansion of the housing portfolio (with 900 new properties due to be delivered over the next financial year), progress being made with delivery of the South Kilburn regeneration project and reform of social care provision in seeking to support families earlier and commission more efficiently with a focus on prevention as much as care.  Members were advised this approach would continue to be supported by lobbying for additional funding while also seeking to protect the key services relied on by local residents.

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 the detail provided within the report felt to reflect the Council’s ongoing commitment to undertaking the budget setting and consultation process as transparently as possible and priority in seeking to protect residents across the borough in taking the tough decisions required to deliver a balanced budget and minimise impact on the delivery of frontline services.  The efforts made to ensure the Council remained in a robust position were also felt to highlight the fiscal prudency and collaborative approach which had been adopted.  Recognising the process of careful planning, financial management and decisive early action designed to deliver financial sustainability and maximum value for money, members were assured that where pressures had emerged, prompt mitigating action had and would continue to be taken in order to ensure that the Council’s overall financial position remained stable including, as an example, the proactive approach taken towards cost control as a means of avoiding over £8m worth of additional expenditure.

Looking forward, members were reminded that Brent had previously been faced with difficult budgets and financial challenges but always emerged stronger as a result with the budget proposals presented within the report focussed on continuing that same level of resilience.  In noting the approach as cautious but ambitious, members were advised of the way in which the proposals remained grounded in the values of fairness, responsibility and putting pride back into Brent with the task not only to navigate through the next financial year, but to ensure the Council was able to continue delivering for residents, investing in the borough and taking the tough decisions required to deliver a balanced budget.

In supporting the comments made, 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 improving the customer experience and resident support based around the streamlining of processes and making resident services easier to access, more responsive and digitally enabled.  Highlighting the digital transformation proposals outlined within the report, members noted these had been designed to generate £1.4m of savings focussed around the use of automation and self-service tools with the technological innovations designed to enhance residents’ access to essential support while enabling staff to dedicate more time to focus on the provision of direct assistance for those most in need of support.

·            The ongoing support for cultural initiatives maximising use of Neighbourhood Community Infrastructure Levy (NCIL) funding as a means of continuing to invest in priorities identified by local residents enabling support to continue being provided for events like the Kilburn Music Mile.

·            The work being undertaken to address the pressures and challenges in relation to demand for services relating to children and young people (including support being provided through the Family Wellbeing Centres and significant investment in additional SEND provision and to address the demand and increasing cost of residential care through the provision of a new children residential care centre within the borough) in order to maintain support for residents and families across the borough and ensure the best possible outcomes for all.

·            The investment of over £14m in Public Realm improvements including highway and footway repairs, upgrading street lighting, enhancing parks and play areas and expanding the CCTV network in order to ensure Brent remained a welcoming, and vibrant place.  Whilst recognising that the budget reflected the challenging nature of financial pressures faced it was felt the investment outlined alongside the ongoing commitment to tackle fly tipping through the Don’t Mess with Brent Campaign, expansion of bike hangers, EV infrastructure, food waste recycling and strengthening of trading standards, highlighted the efforts being made, whilst not avoiding the tough decisions required, to create a cleaner, greener safer and a more accessible environment delivering real improvements for residents.

·            The significant regeneration achievements which were continuing to be delivered, despite the challenging financial position faced by the Council.  This included the efforts being made, despite wider market pressures, to support the delivery of new affordable housing (with reference made, as an example to the recent approval of the Argenta House development providing an additional 180 affordable homes) as a means of addressing the housing crisis and in enabling the Council to exceed its commitment to deliver 5,000 affordable homes and 1,700 council homes by 2028.  This approach was also supported through the revised Property Strategy and Local Plan review in seeking to ensure the Council was able to maximise the value of its assets, bringing underused sites back into productive use whilst also prioritising the type of developments residents genuinely need in the right places and supported by the right infrastructure.  At a time when many Councils were stepping back from these commitments, members felt it important to recognise that Brent was still seeking to deliver working closely with developer and partners to secure the new housing and supporting infrastructure required.

·            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.

·            The focus in seeking to continue driving efficiency measures and service transformation through commissioning and procurement arrangements as a means of delivering further savings on a collaborative and cross cutting basis that could be used to protect key services and maintain the focus on the Council’s core priorities and improvements to the borough.

·            The continued focus on efforts to address the housing crisis within the borough not only in seeking to mitigate against ongoing pressures relating to homelessness and the supply of Temporary Accommodation, utilising all available funding streams (including Local Authority Housing Fund & Council Homes Acquisition Programme) alongside a range of other options such acquisitions and leasing and ongoing delivery of the Council’s new build programme, but also through the Council’s Preventing Homelessness Programme.  These efforts were also being supported by work to drive up standards and protect tenants in the private rented sector including the Councils Landlord Licensing Scheme and focus on the Supported Exempt Accommodation market with the opportunity also taken to commend the additional protections for tenants introduced by the Government through the Renters Right Act.

·            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 and Extra Care provision as a longer term alternative strategy to residential care, more accessible model of assessment and ongoing benefits being delivered through Brent Health Matters in seeking to address health inequalities on a more joined up basis.

Prior to summing up, Minesh Patel (Corporate Director Finance & Resources) was also invited to comment, with members advised that the impact of any announcements relating to the outcome of the Government’s Fair Funding review and final Local Government Financial Settlement (both expected during December 2025) would need to be factored into the final proposals presented to Cabinet and Council in February 2026.  In terms of the assumptions outlined it was, however, noted that whilst the funding figures included in the draft budget would need to be updated following the Provisional Local Government Finance Settlement the position regarding any multi-year funding settlement and Funding Review was not, expected to impact until 2027-28.

In summing up Councillor Muhammed Butt once again 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.  Highlighting the impact of the budget gap identified as needing to be addressed, this had required the Council to bring forward a new series of savings proposalswhich (subject to approval following consultation and scrutiny) would need to be implemented during 2026-27 in order to set a balanced budget, recognising the provisional Local Government Funding Settlement still be announced and assumptions on which the 2026-27 budget proposals had been based, as outlined in the report.

Referring to the new saving proposals (as detailed in Appendices A & B of the report), the Leader felt it important to highlight the change in approach adopted, with the proposals built around more collaborative and cross-cutting themes focussed on identifying high-impact opportunities, including cross-directorate working, improving productivity, better use of digital solutions, and increasing income generation.  In outlining the specific themes identified in relation to commissioning and procurement, digital transformation, efficiency improvements, workforce productivity, income maximisation, resident experience, and service-specific proposals the opportunity was taken to reference the priority saving opportunities identified, which it was noted had either been categorised as service specific or more strategic and cross cutting programmes.  Whilst acknowledging the challenging nature of the decisions to be made members were, however, assured of the emphasis throughout the process in seeking to ensure the Council remained financially sustainable with the proposals focussed around the delivery of efficiency measures, service transformations, cost reductions and income generation with a view to protecting front line services, continuing to innovate, collaborate, invest and also improve how residents experienced Council services.

In concluding, 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 to safeguard, as far as possible, frontline services for 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 detailed within the report.

(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 2026/27.

(4)       To endorse the approach to the statutory process of consultation, scrutiny and equalities between November 2025 and February 2026, 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 sections 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.

(9)       To note the revised Debt Recovery Policy, as set out in Appendix C of the report.