Decision details

RESOLVED:

That Cabinet approves for recommendation to Council:

1)    The General Fund and Housing Revenue Account budgets and capital programme proposals for 2023/24 (as detailed in Appendices A, B and C) and beyond, and having taken the consultation responses conscientiously into account outlined in Appendix F Budget Consultation Feedback.

2)    The Capital Strategy, Treasury Management Strategy Statement, Investment Strategy, and Minimum Revenue Provision Statement for 2023/24 – 2027/28 as detailed at Appendix D.

3)    The proposed London Borough of Hillingdon Pay Policy Statement for 2023/24 set out at Appendix E.

4)    That it resolves that Cabinet may utilise the general reserves or balances during 2023/24 in support of functions designated to the Cabinet in line with Part 4 of the Constitution (as set out in Schedule G of the Constitution - Budget and Policy Framework Procedure Rules).

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.

That Cabinet:

6)    Notes the Corporate Director of Finance's comments regarding his responsibilities under the Local Government Act 2003.

Reasons for decision

The Cabinet Member for Finance introduced the budget report and noted that only a relatively small number of changes had been made since the December version that had been out to public consultation. It was confirmed the proposals for Council Tax and the Social Care Precept would remain as published, along with fees and charges.

The Cabinet Member informed Cabinet about improvements in the Local Government Finance Settlement and the Better Care Fund which would help mitigate the use of earmarked reserves in the next financial year. In respect of the capital budget, it was noted the Council would need to incur higher debt service costs due to the lower than projected capital receipts and also a contingency fund required to reflect the increased costs in construction.

The Cabinet Member explained how future levels of Government funding and some grants still lacked clarity of detail at this time, but notwithstanding that, it was welcome that the Council was still able to set a balanced budget for the forthcoming years.

On housing, it was noted that proposed rents would increase by 7%, less than the prevailing rate of inflation and that the budget included proposals for £195m of investment in the Council’s existing housing stock, along with 8,901 brand new homes, over the life of the financial forecast.

In summary, the Cabinet Member welcomed the sound, prudently constructed budget, one which recognised the challenging times, growing demand and reduced levels of government funding, but was carefully balanced by plans to transform and modernise the Council in order to continue to provide key frontline services to residents.

The Leader of the Council proposed some minor amendments to the report’s recommendations to reflect the relevant financial year and beyond, as appropriate, and these were agreed.

Following consideration of the consultation and Select Committee comments, Cabinet, therefore, resolved to recommend its budget proposals to the Council meeting on 23 February 2023 for final consideration.

Alternative options considered and rejected

The Cabinet could have chosen to vary the proposals in its budget before recommending it to Council.