Decision details

RESOLVED:

That the Cabinet:

1.    Notes the budget monitoring position and treasury management update as at September 2023 (Month 6), noting the actions proposed by officers as outlined in Part A of the report.

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

a)    Rephasing of £29,516k 2023/24 General Fund Major Projects expenditure and associated financing budgets into future years.

b)   Rephasing of £33,678k 2023/24 HRA capital expenditure and financing budgets into future years as set out in the report.

c)    Revisions to Leisure service Fees and Charges in-year, with effect from 1 December 2023, noting that Leisure Services fees and charges are reviewed annually in-line with existing contract terms and CPI rates.

d)   Acceptance of £10k grant funding from the Department for Levelling Up, Housing and Communities for running costs associated with the continuation of temporary pavement licence provisions.

e)    Acceptance of gift funding in relation to a Planning Performance Agreement in accordance with the provisions of Section 93 of the Local Government Act 2003 for;

                             i.        Former Morrisons Supermarket, 41-67 High Street, Yiewsley - £25,000

                            ii.        470 Bath Road - £31,850

                          iii.        Rosedale College - £25,000

                          iv.        148-154 High Street, Uxbridge - £70,000

[Note: an administrative update to this decision was made by Democratic Services to add the precise locations from that published in the report]

f)     Acceptance of a grant of £750k from Greater London Authority as match funding for the acquisition of three properties for the resettlement of Afghan and Ukrainian refugee families.

g)   Acceptance of a grant of £4,428k from Greater London Authority as match funding for the acquisition of fourteen properties to provide accommodation for 21 rough sleepers and 21 care leavers in shared accommodation and to provide associated housing support.

h)   Acceptance of a grant of £2,100k from the Department for Levelling Up Housing and Communities as match funding for the acquisition of ten properties for Afghan and Ukrainian refugee families.

Reasons for decision

Councillor Goddard, Cabinet Member for Finance, introduced the Budget Monitoring report for Month Six, which outlined the Council's projected results for the financial year as of 30 September 2023. Addressing the challenging financial environment for local authorities, the Cabinet Member highlighted specific pressures in Hillingdon, including homelessness, increased demand for social care, and rising energy costs due to global events.

The Council's response to financial challenges was described as realistic and robust, managing costs through budgetary controls and maintaining debt at modest and sustainable levels. The General Fund revenue account showed a small underspend against the budget, with additional costs absorbed for the staff pay settlement. Projections for year-end reserves included earmarked reserves and unallocated general balances totalling just under £41 million. Councillor Goddard emphasised the objective of retaining and building reserves despite economic challenges and the importance of the Council’s savings program.

On capital expenditure, there was a projected underspend, attributing this to further slippage to constraints in the construction sector. The Cabinet Member noted examples such as delays to projects like the West Drayton and Yiewsley Leisure Centre and HOAC. The Dedicated Schools Grant and Housing Revenue Account were discussed, with the latter projecting an underspend against the budget due to delays in the Hayes Regeneration project.

The Cabinet Member moved additional financial recommendations, including the rephasing of capital expenditure, addressing proposed increases in Leisure Services fees and charges and sought clarification on the exact locations for the planning gift funding acceptances which was recommended for approval, subject to a check and any changes made by Democratic Services.

Alternative options considered and rejected

None.