Decision details

RESOLVED:

That the Cabinet:

1.     Note the budget monitoring position and treasury management update as at August 2023 (Month 5), noting the actions proposed by officers as outlined in Part A of the report.

2.     Approve the financial recommendations set out in Part B of the report below:

a.     Accepts a grant of £163,419 from the North West London Integrated Care Board to fund two staffing posts to support the implementation of Population Health Management.

b.    Accepts a grant of £1,583,351 from the Department of Health and Social Care’s Market Sustainability and Improvement Fund (MSIF) Workforce Fund to address Adult Social Care workforce pressures during the winter period to 31^st March 2024.

c.     Accepts £20k additional grant funding from the Office for Product Safety and Standards (OPSS) for costs associated with supporting the Product Safety at Ports & Borders Programme for 2023/24.

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 noted some recent positive national economic data and the stabilisation of interest rates, but pointed out the reality for local authorities on the ground and in particular, for Hillingdon, the continuing cost pressures associated with homelessness, asylum seekers and the demand for adult and children’s social care.

The Cabinet Member stressed that at the heart of the Council’s budget strategy was the need to live within budget and not deplete reserves, so to that end, it was explained that further budgetary margins were being created such as examining discretionary expenditure and a review of areas within the Council’s balance sheet. The Council’s realistic and robust approach to its finances, managing budgetary controls and maintaining debt and modest and sustainable levels was made clear.

The Cabinet Member stated that earmarked reserves were projected to be at £14.3m, and combined with unallocated balances, the Council would have £41.1m in reserves at its disposal at the end of the financial year.

To support this, it was mentioned that the current savings programme was on track, and that there would be even further transformation programmes, not currently reflected in the current budget, to yield a further strengthening of the Council’s financial position and its reserves.

The Cabinet Member provided an update on the Council’s capital expenditure, where it was noted there was an underspend within the year, largely due to capacity constraints in the construction sector which had delayed some projects. An update on the Dedicated Schools Grant, where the position had remained unchanged, was given along with the Housing Revenue and Capital Accounts.

Cabinet made a number of other financial decisions relating to the acceptance of grants from the North West London ICB to support population health management work locally, a Government grant to fund upcoming social care workforce pressures and costs associated with changes to requirements for import and product safety at Heathrow Airport.

The Leader of the Council remarked how the Council was not immune to the national economic picture, but that its sound financial management would put it in a strong position to live within its means.

Alternative options considered and rejected

None.