Decision details

RESOLVED:

That Cabinet:

1)    Approve the draft General Fund and Housing Revenue Account budgets and capital programme proposals for 2024/25 (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 2024/25 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 2024/25 budget proposals to be considered by Cabinet in February 2024.

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 2024/25 along with projections for future years, the Housing Revenue Account proposed budget, updated fees and charges proposals and the draft capital programme for 2024/25 and beyond.

The Leader of the Council read a statement from the Cabinet Member for Finance on the budget proposals, who had sent his apologies. In the statement, the challenging economic environment was acknowledged, marked by higher-than-predicted inflation rates and increased interest rates, affecting families, businesses, and local authorities.

Services, particularly in social care, housing, and homelessness, were experiencing heightened demand. Notably, national government funding to local authorities was not keeping pace with inflation.

Despite the uncertainties, a 2.99% increase in core Council Tax and a 2% increase in social care precept for 2024-2025 were proposed. It was emphasised that even with these increases, that Hillingdon’s Council Tax rates would remain among the lowest in London. Fees and charges were proposed to be adjusted to a 5% increase, aligning with the consumer prices index and modest with neighbouring authorities.

The Statement from the Cabinet Member stated that inflation and demand-led growth were expected to add significantly to the Council’s cost base next year. Notably, the provisional budget gaps in later years were attributed to the assumption that funding for adult social care would not continue beyond 2025.

A savings program, incorporating technology, invest to save measures, and service transformation, aimed to yield £33.4 million in savings over the five year period. The capital expenditure budget was proposed at £217.8 million, with affordable levels of external debt. Earmark reserves were expected to strengthen, resulting in a balanced budget for 2024-2025 and the expected potential to balance for future years.

On the Housing Revenue Account, the statement by the Cabinet Member noted that rents were to increase by 7.7%, following the Government CPI plus 1%. Capital expenditure of £441.8 million was also planned for the next five years.

In summing up, the statement from the Cabinet Member acknowledged the diligence and hard work required to realise the full value of the savings program in the 2024-2025 budget, but notwithstanding that, commended the Cabinet’s budget proposals as robust, grounded in the reality of the current environment for local authorities.

The Leader moved the budget proposals for approval and consultation, which Cabinet agreed.

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.