Decision details

RESOLVED:

That Cabinet:

1)    Approve the draft General Fund and Housing Revenue Account budgets and capital programme proposals for 2023/24 (as detailed in Appendices A and B) and beyond as the basis for consultation with Select Committees and other stakeholders.

2)    Approve the proposed amendments to fees and charges to take effect in 2023/24 included in Appendix C, as the basis for consultation with Select Committees and other stakeholders.

3)    Request the comments of individual Select Committees on the draft budget proposals relating to their areas of responsibility.

4)    Note that Provisional Local Government Finance Settlement is awaited from HM Government and the output from these will be factored into the final 2023/24 budget proposals to be considered by Cabinet in February 2023.

5)    Authorise the Corporate Director of Finance, in consultation with the Cabinet Member for Finance, to respond on behalf of the Council to the consultation on the provisional Local Government Finance Settlement and to the Mayor of London’s budget consultation.

Reasons for decision

Cabinet put forward its budget proposals for public consultation. This included the Council’s Medium-Term Financial Forecast, the draft General Fund revenue budget for 2023/24 along with projections for future years, the Housing Revenue Account proposed budget, updated fees and charges proposals and the draft capital programme for 2023/24 and beyond.

The Cabinet Member for Finance explained the background to the budget proposals, including the tough economic environment and pressures through inflation, the legacy of Covid-19 and the increase in demand for social care. It was noted that central Government funding, yet to be announced, would still not match the pace of the increases in cost pressures.

Savings of £21m over the ensuing financial year were proposed, streamlining back-office functions to ensure front line services were protected. It was noted that no cuts in front-line services were proposed.

A reset in fees and charges were included in the budget proposals to cover the direct cost of discretionary services and the Cabinet Member explained that the proposed Council Tax increase would be well under inflation and would amount to an increase of £1.21 per week for a Band D property equivalent. It was also noted that Hillingdon has had one of the lowest levels of Council Tax in Outer London as a consequence of the previous long-term freeze in Council Tax.

In respect of the Council’s capital budgets, £340m of expenditure in infrastructure and facilities over the coming years was proposed. Cabinet was informed that housing rents would increase by 7% and the housing capital programme would be deployed to improve and increase the housing stock, whilst also investing in innovative housing projects.

The Cabinet Member recommended the balanced budget for consultation, which contained realistic proposals reflecting the current environment.

The Leader of the Council reiterated the backdrop to the budget proposed and welcomed its prudent and cautious approach, enabling the Council to secure its financial future and services for residents. The Leader expressed his thanks to the Cabinet Member and the Council’s finance team.

Cabinet agreed the draft budget proposals for public consultation, which would also go via all Select Committees for comment, before a final version is submitted in February 2023 for decision.

Alternative options considered and rejected

The Cabinet could have chosen to vary other proposals in its budget before consultation. However, to comply with the Budget and Policy Framework, the Cabinet was required to publish a draft budget for consultation at the meeting.