Issue - meetings

Report of the Director of Finance. To be presented by the Cabinet Member for Finance and Local Investment.

The report sets out details of proposed budget for 2023-24 and MTFS to 2027-28, including savings, growth and capital proposals. The report will also set out details of provisional funding for 2023-24 and, if available, the remainder of the planning period and highlight areas of risk. The report recommends that the budget proposals be released for public consultation and Scrutiny consideration. The report also includes details of the proposed HRA budget for 2023/24 and MTFS to 2027/28, including proposed 5-year capital investment and funding. It sets out the proposed changes to the rent levels for Council tenants in General Needs and Sheltered/Supported homes, and residents in temporary accommodation.

The Cabinet Member for Finance and Local Investment introduced the report which set out details of the draft General Fund (GF) Budget for 2023/24; the Medium Term Financial Strategy (MTFS) 2023/28; the draft HRA Budget 2023/24 and it’s draft Business Plan including estimated income (funding) and expenditure adjustments, as well as the draft capital programmes for both funds.

The Cabinet Member highlighted that the budget was being developed against a backdrop of unprecedented economic uncertainty and high inflation. The administration recognised the cost of living crisis and impact on residents, businesses and communities and would also be focused on getting information, advice and support to those that needed it the most and achieving the best possible outcomes.

In the context of the limited resources available to the Council, the Cabinet Member outlined the budget priorities and these were summarised as follows:

-       Continuing collaboration with the community on service provision.

-       Investment in Children’s Services and Adults Services.

-       Utilising funding to support to residents through the Council Tax Reduction scheme and Household Support Fund.

-       Identifying Capital programme opportunities to meet needs in communities.

-       Active life programme.

-       Ongoing investment in Council homes.

In response to questions from Cllr Brabazon, Cllr Brennan and Cllr Connor, the following information was provided.

-       There was no further announcements or information supplied from the government, since the report had been published, on the areas that were listed as awaiting further information.

-       With regards to the Council applying Formula Rent to all housing schemes when economic circumstances were better and reviewing this position annually or even awaiting the government financial settlement before taking the decision on London Affordable rents, it was noted that the London Affordable Rents would only apply to the 870 properties in the new build developments. These were being built under grant funding obtained through the Mayor’s Building Council Homes for Londoners scheme and were those that needed to be onsite by March 2023. Therefore, this did not affect any other policy decision or other rent levels. This position could not be reviewed annually as this only applied to a specific housing programme which would expire next year. It was reiterated that there were no plans for any of the homes that were being delivered in the GLA’s 2021 to 2026 Affordable Homes Programme to be delivered at London Affordable Rent.

-       With regards to the indication of social housing rent being increased and capped at 7% and whether this should go forward due to the cost of living crisis, this was a modelling assumption which had been used by officers to inform the report and based on the government’s announcements on what was possible. This potential increase was a decision for Cabinet to make in the 2023/24 year. However, it was noted that a 7% increase would still represent a lower than inflation level increase.

-       It was noted that both Formula Rent and London Affordable Rent could apply to the Cranwood housing development scheme as set  ...  view the full minutes text for item 13