Decision details

RESOLVED:

That the Cabinet:

1. Note the budget monitoring position and treasury management update as at June 2023 (Month 3) as outlined in Part A of this report.
2. Approve the financial recommendations set out below:

a)    Approve acceptance of £50k additional grant funding from Transport of London for a comprehensive study of the London Borough of Hillingdon’s Cycle Infrastructure.

b)   Approve acceptance of £78k grant funding from the Department for Environment, Food, and Rural Affairs (Defra) for costs associated with the delivery of new post-Brexit port health authority functions at the Heathrow Imported Food Office.

Reasons for decision

Cabinet was informed of the forecast revenue, capital and treasury position for the current year 2023/24 to ensure the Council achieved its budgetary and service objectives.

The Cabinet Member for Finance updated Cabinet on the national economic position, which he noted had created a challenging environment for local authorities, citing the recent bankruptcy of Birmingham City Council. Whilst inflation had fallen, it had had a damaging impact on the economy and had stayed longer than originally forecast, whilst central Government funding to local government had been reduced in real terms.

In respect of Hillingdon’s budget position, the Cabinet Member considered it to be realistic and robust through managing costs via budgetary controls and maintaining debt at sustainable levels, so the Council was resilient to financial pressures. It was noted that the budget had adapted to absorb staff pay awards, and along with other pressures, and the projected of use earmarked reserves, the Council was projecting a position of £41.3m of total reserves by the end of the financial year. It was the Council’s objective to retain and build the Council’s reserves, notwithstanding economic pressures and the Council’s programme of savings would assist in this direction.

The Cabinet Member informed Cabinet of the position of the capital programme which was indicating an underspend largely due to capacity constraints in the construction centre causing delays in delivery of key projects. It was further noted there was no change in the Dedicated Schools Budget from the last monitoring report.

Cabinet received an update on the Housing Revenue Account and made a number of other financial related decisions including the acceptance of grants for a study into the Borough’s cycle infrastructure and post-Brexit functions at the Imported Food Office at Heathrow Airport.

The Leader of the Council thanked the Cabinet Member for his stewardship of the Council’s finances.

Alternative options considered and rejected

None.