Agenda item

This report sets out the Council’s budget proposals for 2026 - 27. It also sets out the overall financial position facing the Council for the medium term and highlights the significant risks, issues and uncertainties as well as detailing 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 23 February 2026.

Cabinet NOTED the following comments made in advance of considering the main report on the Budget & Council Tax 2026-27:

Councillor Conneely, as Chair, was invited to introduce the report from the Scrutiny Budget Scrutiny Task Group in relation to their review of the budget setting proposals for 2026-27, which had been included as Appendix D to the Budget and Council Tax 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 evidence sessions as part of the scrutiny process.  In welcoming the Government’s reintroduction of multi-year funding settlements, which it was hoped would strengthen the ability for the Council to develop a longer term planning approach, the impact of the broader thematic nature of the budget proposals was also recognised in support of a more strategic approach and in breaking down departmental silos with the role of scrutiny also seen as key in continuing to monitor how these were implemented along with their impact on residents to ensure no challenges arose that would require a change in strategy

Although supportive of the recent changes introduced in relation to the Local Government Funding regime, the Task Group had recognised the number of significant financial risks and pressures that continued to be faced by the Council and across local government as a whole, including rising demand for social care and the temporary accommodation crisis.  It was felt these challenges had been further compounded by the increasing role of privatisation and private equity in publicly commissioned services, particularly social care, which the Task Group had felt continued to undermine quality and drive cost inflation highlighting the need for meaningful reform of commissioning frameworks.

In terms of specific areas of focus, Cabinet was advised that the Task Group had been particularly encouraged by the work being undertaken to address the challenges in relation to supported exempt accommodation, as a means of delivering value for money whilst enhancing the quality of support being provided and in ensuring the private sector was not taking advantage of the market.  In addition, the Task Group had been keen to recognise and commend the work undertaken in relation to Children’s Services to invest in early intervention and reduce the reliance on agency staff, with it hoped this approach would be adopted more widely as best practice.

In concluding, whilst recognising the work still to be done in delivering the proposals, Councillor Conneely once again thanked all those involved for their participation in the Task Group and commended the recommendations made by the Budget Scrutiny Task Group to Cabinet for consideration as part of the budget setting process.

Having welcomed and supported the challenge, comments and approach taken 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 2026/27, 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 2026/27, as summarised in Appendices A and B of the report.

(3)       To recommend to Full Council the savings proposals for 2026/27 as set out in Appendix C (i) of the report.

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

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

(6)       To recommend to Full Council the Housing Revenue Account (HRA) budget and business plan for 2026/27, as set out in section 12 and appendix P of the report.

(7)       To approve the HRA rents for council dwellings, tenant service charges and garages as set out in section 12 of the report.

(8)       To approve 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 12 of the report.

(9)       To note the Dedicated Schools Grant, as set out in section 13 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 14 and Appendix E of the report, and note the Capital Pipeline Schemes as detailed in Appendix F of the report.

(11)    To recommend to Full Council the use of £2.9m of unrestricted right to buy receipts for capital works to improve HRA housing and enfranchisement (renewal of leaseholds approaching expiry).

(12)    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.

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

(14)    To approve, and where relevant agree to recommend to Full Council the Fees and Charges Policy and Schedule of Fees and Charges, as set out in Appendices L (i) and L (ii) of the report.

(15)    To note the results of the budget consultation, as set out in section 11 and detailed in Appendix M of the report.

(16)    To note the legal advice from the Director of Law, as set out in Appendix N of the report.

(17)    To approve the new Strategic Community Infrastructure Levy (SCIL) allocations as set out in section 14 of the report, which include an uplift of up to £4.7m to £11.2m for the College of North West London, £0.2m for a new pedestrian crossing at the junction of Willesden Lane, Cavendish Road and The Avenue and £1.8m for Carlton Vale Boulevard in South Kilburn.

To also note and approve the recommendations identified for consideration by Full Council as detailed in section 2.18 – 2.38 of the report.

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

Prior to consideration of the main report, Councillor Muhammed Butt (as Leader of the Council) welcomed Councillor Rita Conneely to the meeting who he advised had been invited to attend, as Chair of the Resources and Public Realm Scrutiny Committee and Budget Scrutiny Task Group, in order to introduce the main findings and recommendations within the Budget Scrutiny Task Group report in relation to their review of the budget setting proposals for 2026-27, which had been included as Appendix D to the Budget and Council Tax 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 evidence sessions as part of the scrutiny process.  In welcoming the Government’s reintroduction of multi-year funding settlements, which it was hoped would strengthen the ability for the Council to develop a longer term planning approach, the impact of the broader thematic nature of the budget proposals was also recognised in support of a more strategic approach and in breaking down departmental silos with the role of scrutiny also seen as key in continuing to monitor implementation along with their impact on residents to ensure no challenges arose that would require a change in strategy.

Although supportive of the recent changes introduced in relation to the Local Government Funding regime, the Task Group had recognised the number of significant financial risks and pressures that continued to be faced by the Council and across local government as a whole, including rising demand for social care and the temporary accommodation crisis.  It was felt these challenges had been further compounded by the increasing role of privatisation and private equity in publicly commissioned services, particularly social care, which the Task Group had felt continued to undermine quality and drive cost inflation highlighting the need for meaningful reform of commissioning frameworks.

In terms of specific areas of focus, Cabinet was advised that the Task Group had been particularly encouraged by the work being undertaken to address the challenges in relation to supported exempt accommodation, as a means of delivering value for money whilst enhancing the quality of support being provided and in ensuring the private sector was not taking advantage of the market.  In addition, the Task Group had been keen to recognise and commend the work undertaken in relation to Children’s Services to invest in early intervention and reduce the reliance on agency staff, with it hoped this approach would be adopted more widely as best practice.

In concluding, whilst recognising the work still to be done in delivering the proposals, Councillor Conneely once again thanked all those involved for their participation in the Task Group 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 the Scrutiny Budget Task Group, Councillor Muhammed Butt (as Leader of the Council) commended the thorough nature of the approach and robust challenge undertaken by the Task Group recognising the nature and extent of ongoing work that would be required to deliver the budget and importance of scrutiny in continuing to monitor progress.  The Leader thanked all those involved for their contribution as a key part of the budget consultation process.

Having noted the comments received, the Leader then invited Councillor Mili Patel (as Deputy Leader and Cabinet Member for Finance & Resources) to introduce the report from the Corporate Director Finance & Resources which set out the Council’s budget proposals for 2026-27 along with 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 Mili Patel began by also taking the opportunity to thank Councillor Conneely and the Budget Scrutiny Task Group for their engagement on the budget, recognising the value of scrutiny as part of the wider budget review and consultation process. In highlighting the way the budget proposals had been shaped by values of fairness, equality and financial prudence it was also felt important to recognise the impact which the Government’s recent announcement of a new funding settlement for local councils across England over the next three years would have in providing greater stability when compared to the previous approach adopted by the coalition and Conservative government which it was felt had systematically undermined fairness in local government funding and failed to reflect increasing pressures in terms of demand and social need leading to significant cuts to vital services.  The challenges created as a result had been compounded by the imposition of single year funding settlements, making it difficult for Council’s to plan over the long-term creating further instability.  In contrast, the new settlement model introduced by the current government was welcomed as providing a fundamentally different and fairer approach involving a multi-year settlement up to 2029, allowing more certainty in being able to plan ahead, and crucially the use of a new funding formula reflecting levels of deprivation as well as population size that allowed resources to flow to those areas most in need.  This had included Brent, with the Fair Funding Review having recognised the significant pressures faced leading to a net benefit of £22.9m in additional core funding for the Council.  This additional financial support was welcomed, given the increasing levels of demand being experienced as a result of the homelessness and the social care crisis which had resulted in serious cost escalation across the sector and shortfalls in funding and with the need to address the resulting gaps identified as a top priority.  As a result, it was pointed out the budget proposals had been designed to achieve a deliberate and careful balance in seeking to protect frontline services whilst also supporting the most vulnerable, stabilising core care provision and maintaining long?term financial resilience.

In continuing, Councillor Mili Patel also felt it was important to recognise the way in which the fiscal discipline, established as a fundamental value by the current Administration in Brent, had ensured the foundations on which the Council stood remained strong.  Whilst not taken lightly (given current pressures on household budgets), members were advised that in order to safeguard and achieve the priorities identified in relation to social care, homelessness prevention and other essential public realm and core services the Council had been left with little choice but to recommend a 4.99% increase in Brent’s element of Council Tax, including the 2% Adult Social Care precept.  In acknowledging the impact, however, the efforts being made to protect those most in need were also highlighted including the continuation of Brent’s Council Tax Support Hardship Fund as a means of supporting an estimated 14,500 residents needing help with their bills.

Whilst recognising the efforts being made to continue the delivery of high quality services and to manage, in as prudent a way as possible, the ongoing pressures in relation to the Council’s financial position members were also advised of the work being undertaken as part of the overall approach outlined in seeking to manage the rising demand on services in as sustainable a way as possible, including the focus on prevention. In terms of Adult Social Care, this had involved investment in early intervention, community?based support and preventative services designed to support residents living independently for longer, avoiding the far higher costs of late?stage, complex care. Similarly, in homelessness services, this had involved expanding the range of prevention initiatives designed to prevent or relieve the level of homelessness applications, reducing the need for expensive emergency accommodation in an effort to not only protect residents wellbeing but also ease the financial pressures created in terms of ongoing demand.

As a further example of the Council’s commitment to delivering not just essential services but those that mattered most to residents whilst also seeking to ensure maximum value for taxpayers and deliver service improvements reference was also made to the level of investment which had been included within the budget proposals and made possible as a result of the robust, disciplined financial management established across the Council.  Members were reminded that this programme had enabled the delivery of £3m for visible improvements to street cleansing and the public realm; £10.5m to modernise libraries, leisure centres, and family wellbeing centres; £16.3m to strengthen digital services and cyber security; more than £4.3m being invested annually in roads, pavements and street lighting as well as £23.1m to progress the Wembley Housing Zone and deliver 291 new homes, £45.6m to regenerate Bridge Park (including the provision of a new leisure centre) alongside significant investment in youth facilities, SEND places, parks, CCTV, energy efficiency, and regeneration across the boroughs town centres.  These projects were ones identified as delivering real benefits for local residents and only possible as a result of the careful financial stewardship and approach adopted by Brent which had avoided the need to seek Exceptional Financial Support from the government.

In concluding her introduction, Councillor Mili Patel once again highlighted how challenging development of the budget proposals had been given the damage created by austerity and demand led pressures, which the Council continued to face, and it was noted would continue to require careful management. Cabinet Members, officers, partners, residents and other key stakeholders were thanked for their diligence and support in the process with the insights gained having been reflected within the report and it noted that despite the significant pressures identified the budget proposals had been designed to stabilise and build for the future with the Council remaining committed to supporting local residents across the borough, protecting the most vulnerable, and investing in Brent’s future.  As such, the budget proposals as presented were therefore commended for approval and reference on to Council for formal adoption as a responsible, forward?looking and fair financial plan for Brent in 2026-27.

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 continued support for children and young people reflecting the efforts being made by the current government to address the pressures identified in relation to school budgets, increasing demand for SEND provision and costs of residential placements, which it was felt highlighted the contrast in approach adopted by the previous Conservative Government.  In welcoming the move towards a Multi-Year Financial settlement and outcome of the Fair Funding Review along with the Government’s ongoing commitment towards covering the cost of the Dedicated School Grant (DSG) override and more sustainable model for SEND provision anticipated within the forthcoming SEND White Paper, support was expressed for the way in which the Council’s budget proposals had also sought to protect and prioritise children’s services.  As part of this approach, specific reference was made to the £110.8m included as core funding for children and young people which represented an £11m growth over the previous year (including an additional £4.2m as a direct result of the reforms introduced to the funding model for local government).  Members were also reminded of the additional £4m investment in SEND provision aimed at delivering an additional 212 specialist places on top of the 400 already provided along with the £4m infrastructure investment in local youth facilities.  Reflecting on the challenges identified, it was felt these measures alongside wider welfare reform involving removal of the two child benefit cap, ongoing provision for breakfast clubs and Free School Meals, continued funding for Family Wellbeing Centres and efforts being made internally to reduce the reliance on the use of agency staff across the service, would continue to build on the priority and positive way forward identified in relation to the provision of services for children and young people.

·            The focus in relation to the protection of children and family services as well as in seeking to tackle Anti-Social Behaviour and Community Safety.  In highlighting and welcoming the recognised value of preventative work in relation to early support and intervention being provided for those families in need, the enhanced focus on enforcement activity and also in seeking to address the underlying causes of crime and anti-social behaviour were also commended as part of the budget proposals in seeking to build for the future and deliver safer neighbourhoods and protect families in hardship whilst restoring dignity, opportunity and hope.

·            The investment and support being provided for cultural provision across the borough including the refurbishment and upgrade of library facilities as well as importance of the ongoing provision in relation to the Council Tax Support Scheme and Hardship Support Funds as a key programme of support for residents across the borough facing financial hardship supported through the Brent Hubs model.

·            The ongoing programme of work and investment in key highway, environmental and public realm infrastructure across the borough to ensure the borough remained clean, green and safe including the Don’t Mess with Brent campaign focussed around tackling fly-tipping and enhancing enforcement activity, provision of additional CCTV, programme of investment supporting visible improvements across parks, public realm and street cleansing, extension of EV infrastructure and additional enforcement officers.  In recognising the difficult nature of decisions required in order to address the challenges identified the investment outlined was supported as a means of improving services and continuing to build for the future.

·            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 support expressed for the outcome of the Fair Funding Review and way in which the ongoing impact relating to inflationary cost pressures and increase in demand on both adult and children’s care services had been reflected within the local government financial settlement and Council’s budget.  As a result, the focus in seeking to support residents requiring care to live as independently as possible and avoid residential placements or extended stays in hospital as well as minimising the need for extended support following hospital discharge was highlighted supported by efforts to expand opportunities for the provision of care in community settings.  In addition, the opportunity was also taken to highlight the investment to deliver improvements in the model for leisure provision across the borough including the enhancements at Vale Farm Leisure Centre and commitment to the Bridge Park development.

·            As a final contribution, reference was also made to the significant impact of the investment included within the budget proposals focussed around tackling the climate emergency (including the investment in Green Corridors and District Heat Network in South Kilburn), supporting digital transformation and the ongoing programme of community grants.  As a further key area of focus, members were also reminded of the work being undertaken in support of the review of the Council’s commissioning and procurement function, which included proposals to generate up to £3m worth of genuine efficiency savings that could then be deployed to support investment in other key priority service areas for local residents.

Prior to closing the debate, Minesh Patel (Corporate Director Finance & Resources) was then invited to update Cabinet on the current position relating to the final Local Government Financial Settlement, with it confirmed that no material changes were anticipated in relation to the provisional settlement on which the budget proposals set out in the report had been based.

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 the legacy created by the previous government. 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, despite the difficult nature of decisions required, had been designed to ensure the Council was able to operate in a financially sustainable and resilient way whilst also seeking to delivery on key priorities and provide essential support for residents across the borough.

The opportunity was also taken to welcome the significant reform of local government funding introduced by the government which had been designed to  recognise the pressures facing local councils, including areas such as Brent where housing costs, deprivation and inequality were inextricably linked and with the net additional funding for Brent received as a direct result of the Fair Funding Review being directed in a responsible and balanced way to address immediate service pressures, support vulnerable residents and to strengthen the Council’s long-term financial resilience.  Whilst recognising the importance of this additional funding, it was however acknowledged that the unprecedented demand being experienced in relation to social care and housing needs services had also required the budget to be built upon a 4.99% increase in Council Tax (including a 2% Adult Social Care precept) which, whilst not covering the true level of growth in costs, was felt to be unavoidable given the £12.2m of recurring funding this generated at a time when public services remained under real pressure and in order to ensure the Council avoided more severe outcomes, at a time when a growing number of councils nationally were requiring exceptional financial support

Whilst acknowledging the improved settlement and efforts being made to manage the Council’s budget it was felt important to recognise, as background to the difficult and responsible decisions which had been required in setting the budget, the challenging nature of the operating environment and wider economic and social context which the Council continued to face given the range of support and services being delivered.  In recognising the tough financial conditions faced by many councils, the specific challenges arising from the sustained pressure needing to be managed in terms of rising demand, inflation, interest rates and increasing complexity in the delivery of services were highlighted with the most significant of these pressures already having been highlighted in terms of housing and temporary accommodation, Adult and Children’s Social Care.  Despite the challenging financial conditions outlined it was, however, also felt important to recognise the Council’s continued financial resilience, careful management and collective discipline (including delivery of the package of savings identified in the Medium-Term Financial Strategy) with the Council, as a result, having continued to balance its budget, protect frontline services and invest in the borough, even as these pressures had intensified.

Whilst acknowledging the challenges identified, members were also reminded that the Council continued to seek opportunities to support investment in the development of services across the borough.  This included a range of investments identified within section 3.15 of the budget report focussed around the public realm; modernisation and enhancement of shared public spaces including delivery of the Willesden Health & Wellbeing Hub; digital transformation; highway and transport infrastructure, CCTV and Public safety along with the provision of Green Corridors to support the creation of safer streets and healthier neighbourhoods; investment in Strategic and Neighbourhood Community Infrastructure Levy projects along with the capital pipeline to support energy efficiency upgrades in Council buildings and leisure provision as well as investment in Wembley Housing Zone to deliver a further 291 new homes; Neasden Civic Partnership; West London Orbital; College of North West London and South Kilburn Regeneration schemes alongside the support for the creation of additional SEND provision and youth facilities. Given the pressures identified the investment in Housing Supply and Temporary Accommodation was also highlighted as a means in seeking to reduce reliance on costly temporary accommodation and provide more stable homes for families.

Whilst not exhaustive, it was felt the examples provided demonstrated how the Council was seeking to continue evolving and adapting to the challenges identified based on a clear set of priorities focussed around the protection ofthe services that mattered most, investing in Brent’s future, and supporting people in need with members reminded that none of the investments would have been possible without the tough decisions taken over previous years to ensure the Council’s finances remained on a strong and stable footing and positive approach adopted to development in the borough.

In commending the government for their longer-term commitment in relation to local government finance and all those who had engaged in the budget consultation process along with Cabinet Members and officers (with specific reference to the finance team) for their support, 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, Cabinet RESOLVED:

(1)    To recommend to Full Council an overall 4.99% increase in the Council’s element of Council Tax for 2026/27, 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 2026/27, as summarised in Appendices A and B of the report.

(3)    To recommend to Full Council the savings proposals for 2026/27 as set out in Appendix C (i) of the report.

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

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

(6)    To recommend to Full Council the Housing Revenue Account (HRA) budget and business plan for 2026/27, as set out in section 12 and appendix P of the report.

(7)    To approve the HRA rents for council dwellings, tenant service charges and garages as set out in section 12 of the report.

(8)    To approve 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 12 of the report.

(9)    To note the Dedicated Schools Grant, as set out in section 13 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 14 and Appendix E of the report, and note the Capital Pipeline Schemes as detailed in Appendix F of the report.

(11)  To recommend to Full Council the use of £2.9m of unrestricted right to buy receipts for capital works to improve HRA housing and enfranchisement (renewal of leaseholds approaching expiry).

(12)  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.

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

(14)  To approve, and where relevant agree to recommend to Full Council the Fees and Charges Policy and Schedule of Fees and Charges, as set out in Appendices L (i) and L (ii) of the report.

(15)  To note the results of the budget consultation, as set out in section 11 and detailed in Appendix M of the report.

(16)  To note the legal advice from the Director of Law, as set out in Appendix N of the report.

(17)  To approve the new Strategic Community Infrastructure Levy (SCIL) allocations as set out in section 14 of the report, which include an uplift of up to £4.7m to £11.2m for the College of North West London, £0.2m for a new pedestrian crossing at the junction of Willesden Lane, Cavendish Road and The Avenue and £1.8m for Carlton Vale Boulevard in South Kilburn.

(18)  To note and approve the recommendations identified for consideration by Full Council as detailed in section 2.18 – 2.38 of the report.